North Dakota solar 101: must read before you buy solar panels

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Solar laws in North Dakota make Net Metering programs available to customers of all investor-owned utilities. Its availability to the customers of municipal utilities and electric cooperatives is optional. The program gives households an opportunity to send the excess electricity back to the grid instead of storing it with batteries.

When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. In North Dakota their value is equal to full retail electricity price. If you have any unused credits at the end of the month, they will be purchased at the utility’s avoided cost rate. The customer retains RECs for their own load, but the RECs associated with net excess generation are transferred to the utility with due compensation to the client.

Renewable Energy Credits are certificates granted to any person or entity upon generation of each MWh of clean electricity. Unlike with Net Metering, you don’t need to sell any electricity to get credits. The value of RECs is always changing, which makes them similar to stock market assets. Based on the available data, selling RECs could mean anywhere from $300 to $1,000 annually for a 10 kW solar system. To participate, you have to apply for approval to the North Dakota Public Service Commission. After that, you can create a REC account with the Midwest Renewable Energy Tracking System (M-RETS) to begin storing and selling your credits.

A solar PV system installed in a home increases its value by about 4%, says 2019 Zillow report. In North Dakota you don't have to pay extra taxes during the first few years following installation. According to the state laws, 100% of the value added as a result of acquiring a solar PV system shall be exempt from taxation for 5 full assessment years. To claim the exemption,contact your local tax assessor.

A solar easement contract is a written agreement between two property owners, for example, you and your neighbor. This type of contract helps to maintain a stable supply of sunlight for your PV modules. A solar easement guards your panels from potential impairments, such as vegetation and structures. It is voluntary and must contain the description of protected space, a list of restrictions and a clause on revision or termination of the contract. Once signed, it is tied to the land, not the owner. Any such agreement must be created in written form and must meet the general requirements for easements on real property.

It is legal to install solar panels on your house in North Dakota. However, there is no statewide legislation that makes it unlawful to restrict installation of solar PV systems. Contact your HOA or study its declaration and rules to find out more. You may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal.

North Dakota’s most frequent natural disasters include floods, severe storms and wildfires. These events inevitably damage the infrastructure, interfering with both generating plants and power lines. Your PV modules are designed to handle most hurricanes and hail, and will be of great use in case of a blackout. In 2021, extremely cold weather left hundreds of thousands of North Dakotans without electricity. No warning was given, and some people spent a few days with unstable electricity supply, if any. The Environmental Protection Agency says extreme weather events are becoming more frequent and powerful, adding to the list of reasons to go solar.