North Dakota Solar Savings Calculator: 2026 Updated

North Dakota Solar Savings Calculator

Calculate North Dakota solar costs, 2026 federal tax-credit status, voluntary utility net metering, payback period, and 25-year savings.

North Dakota 2026 rules: No state solar income tax credit or rebate program. The federal Section 25D credit ended for systems placed in service after December 31, 2025. North Dakota has no statewide net metering mandate; Xcel Energy, Montana-Dakota Utilities, and many cooperatives offer voluntary net metering or billing programs with utility-specific terms. No statewide residential property tax exemption for solar.

Loading calculator…

Estimates only. Verify utility rates, export program terms, county tax treatment, and federal tax status with your utility, installer, and tax professional.

What Is the North Dakota Solar Savings Calculator?

The North Dakota Solar Savings Calculator estimates residential solar installation costs, subtracts entered tax credits and rebates, and projects electricity-related savings over 25 years. It calculates solar production, annual household electricity usage, solar offset, payback period, and long-term net savings using your electricity rates, system details, and financial assumptions.

The tool is designed for North Dakota homeowners who want to compare the upfront cost of solar panels with their potential long-term financial benefits.

Its starting settings include an 8 kW solar system, an installed cost of $3.20 per watt, a $100 monthly electricity bill, and an electricity rate of $0.105 per kilowatt-hour (kWh).

The federal and North Dakota state credit fields both begin at 0%. The calculator also includes adjustable fields for upfront rebates, property tax savings, electricity export rates, and annual utility fees.

These values allow you to compare different financial scenarios. However, the tool does not verify incentive eligibility, utility tariff terms, or the actual cost of a proposed solar installation.

How the North Dakota Solar Savings Calculation Works

The calculator combines installation costs with estimated solar electricity production and future electricity values. It first calculates net system cost, then projects annual savings and identifies the year when cumulative benefits recover the initial investment.

1. Calculate Gross Solar Installation Cost

The gross installation cost depends on solar system capacity in kilowatts (kW) and the installed price per watt. Since one kilowatt equals 1,000 watts, the formula is:

\text{Gross Cost}=\text{System Size (kW)}\times1000\times\text{Cost per Watt}

For example, an 8 kW solar system installed at $3.20 per watt has a gross cost of:

8\times1000\times3.20=\$25,600

The estimated installation cost is $25,600 before accounting for any entered credits or rebates.

2. Calculate Tax Credits, Rebates, and Net Cost

The calculator includes editable federal and North Dakota state credit percentages. Both begin at 0%, but the calculation uses the percentages entered into those fields.

\text{Federal Credit}=\text{Gross Cost}\times\frac{\text{Federal Credit Rate}}{100}

\text{State Credit}=\text{Gross Cost}\times\frac{\text{State Credit Rate}}{100}

The calculator subtracts both calculated credit amounts and any entered upfront rebates from the gross installation cost. The resulting net cost cannot be less than zero.

\text{Net Cost}=\max(0,\text{Gross Cost}-\text{Federal Credit}-\text{State Credit}-\text{Rebates})

For a $25,600 installation with both credits set to 0% and no upfront rebate, the net system cost remains $25,600.

The calculator’s informational text describes a 0% federal residential credit assumption for systems placed in service in 2026 and no North Dakota state solar income tax credit. These descriptions are built into the tool. The calculator does not determine individual tax eligibility or confirm whether a particular incentive is available.

3. Estimate Annual Electricity Usage and Solar Production

The calculator estimates annual household electricity consumption from your monthly electric bill and electricity rate.

\text{Annual Usage (kWh)}=\frac{\text{Monthly Electric Bill}\times12}{\text{Electricity Rate (\$/kWh)}}

For a $100 monthly electricity bill and a rate of $0.105 per kWh:

\text{Annual Usage}=\frac{100\times12}{0.105}\approx11,429\text{ kWh}

Solar production uses a fixed assumption of 1,350 kWh per installed kilowatt during the first year.

\text{Year 1 Production (kWh)}=\text{System Size (kW)}\times1350

Using the default 8 kW system:

8\times1350=10,800\text{ kWh}

The estimated first-year solar production is 10,800 kWh.

The calculator distributes annual production across 12 months using fixed seasonal percentages. It also assumes that solar production decreases by 0.5% each year after the first year.

P_y=P_1\times(1-0.005)^{y-1}

Here, P_y represents production in year y, and P₁ represents first-year production. The calculator applies this reduction throughout its 25-year projection.

4. Calculate Self-Consumption and Exported Electricity

Solar electricity may be consumed directly inside the home or exported to the electricity grid. The calculator values these two portions separately.

For each month, self-used electricity is the smaller of the selected self-consumption percentage of solar production and estimated monthly household electricity usage.

\text{Self-Used kWh}=\min\left(\text{Monthly Solar kWh}\times\frac{\text{Self-Use \%}}{100},\text{Monthly Usage kWh}\right)

The remaining electricity is counted as exported energy.

\text{Exported kWh}=\max(0,\text{Monthly Solar kWh}-\text{Self-Used kWh})

Electricity used at home is valued at the entered retail electricity rate. Exported electricity is valued at the entered export credit rate.

\text{Annual Savings}=\text{Self-Use Value}+\text{Export Value}-\text{Annual Fees}+\text{Property Tax Savings}

The calculator increases both the retail electricity rate and export credit rate by the selected annual utility rate increase. Annual utility solar fees and property tax savings remain fixed at their entered dollar amounts.

5. Calculate Solar Payback and 25-Year Net Savings

The calculator adds estimated annual savings over a 25-year period. The payback period is the first whole year when cumulative savings equal or exceed the net installation cost.

If the calculated net cost is zero, the calculator displays “Immediate.” If the system does not recover its cost within the projection period, it displays “25+ Years.”

\text{25-Year Net Savings}=\sum_{y=1}^{25}\text{Annual Savings}_y-\text{Net System Cost}

The calculator also estimates the carbon dioxide offset associated with 25 years of solar electricity production. It uses a fixed factor of 0.45 tons per megawatt-hour.

\text{CO}_2\text{ Offset (tons)}=\frac{\text{25-Year Production (kWh)}}{1000}\times0.45

Worked Example Using Default Calculator Values

Consider the calculator’s starting settings: a $100 monthly electricity bill, a $0.105 per kWh electricity rate, an 8 kW solar system costing $3.20 per watt, 30% daytime self-consumption, a $0.105 per kWh export credit, and a 3% annual utility rate increase. Federal credits, state credits, rebates, annual utility fees, and property tax savings are all set to zero.

Calculated Item	Estimated Result
Gross system cost	$25,600
Federal credit at 0%	$0
North Dakota state credit at 0%	$0
Upfront rebates	$0
Net system cost	$25,600
Annual household electricity usage	11,429 kWh
First-year solar production	10,800 kWh
Calculated first-year self-use	3,240 kWh
Calculated first-year exports	7,560 kWh
Calculated first-year savings	$1,134
Solar offset	95%
Payback period	19 years
25-year cumulative savings before system cost	$38,660
25-year net savings	$13,060
25-year CO2 offset	114.5 tons

In this example, the first year’s 10,800 kWh of production is valued at $0.105 per kWh. Because the retail and export credit rates are identical, first-year savings equal $1,134.

10,800\times0.105=\$1,134

The model assumes solar output decreases by 0.5% annually while electricity and export credit rates increase by 3% annually.

By the end of year 18, cumulative estimated savings reach approximately $25,352, slightly below the $25,600 system cost. By the end of year 19, cumulative savings reach approximately $27,116. The calculator therefore reports a 19-year payback period.

Over 25 years, cumulative projected benefits reach approximately $38,660. Subtracting the $25,600 net system cost gives an estimated $13,060 in 25-year net savings.

The first-year self-use, export, and savings figures shown in this example come from the underlying calculation. The current interface has some mislabeled result rows, which are explained below.

How to Use the North Dakota Solar Savings Calculator

Enter your monthly electric bill. Provide the amount in dollars and your electricity rate in dollars per kWh. Use a positive electricity rate for a meaningful annual usage calculation.
Enter your solar system details. Provide the proposed solar system size in kilowatts and the installed cost per watt.
Select your utility. Choose Xcel Energy (NSP), Montana-Dakota Utilities, Basin Electric Cooperative, or Municipal Utility from the dropdown menu.
Adjust electricity and export assumptions. Enter your export credit rate, daytime self-consumption percentage, annual utility rate increase, and annual solar utility fees.
Review incentive fields. Enter any applicable federal or state credit percentages, upfront rebates, and annual property tax savings.
Click “Calculate Savings.” Review the installation cost, estimated production, solar offset, payback period, and 25-year net savings.
Compare alternative scenarios. Change the numerical inputs and calculate again. Click “Reset” to restore the calculator’s original values.

The calculator also contains a checkbox labeled “Battery storage or high daytime self-use.” However, the checkbox does not currently affect the mathematical calculations. To explore different electricity consumption patterns, change the daytime self-consumption percentage directly.

Selecting a utility also does not automatically change the electricity rate or export credit rate. These values must be entered manually.

Understanding Your Solar Savings Results and Assumptions

What Does Solar Offset Mean?

Solar offset compares estimated first-year solar production with calculated annual household electricity usage.

\text{Solar Offset \%}=\frac{\text{Year 1 Solar Production}}{\text{Annual Usage}}\times100

In the worked example, 10,800 kWh divided by approximately 11,429 kWh gives a solar offset of 94.5%, displayed as 95% after rounding.

This means the solar system’s estimated first-year production equals about 95% of the home’s calculated annual electricity consumption.

It does not mean the household automatically saves 95% on electricity bills. Savings depend on how much solar electricity is used directly, how much is exported, and the value assigned to each portion.

How Do North Dakota Utility Export Credits Affect Savings?

The calculator’s accompanying information describes North Dakota electricity export arrangements as utility-specific. It states that the state has no statewide net metering mandate and that participating utility programs may offer different export terms.

The calculator includes Xcel Energy (NSP), Montana-Dakota Utilities, Basin Electric Cooperative, and Municipal Utility as selectable options.

However, selecting one of these utilities does not activate a separate compensation formula. Instead, the calculator values exported electricity using the export credit rate entered by the user.

For example, if the export credit rate is lower than the retail electricity rate, exported electricity generally contributes less savings per kWh than electricity used directly at home.

If both rates are equal, as in the default example, the financial value of each kWh is the same regardless of whether it is counted as self-used or exported.

The calculator does not separately model monthly net metering balances, annual settlements, or utility-specific billing formulas. Verify your actual export compensation terms before relying on the estimate.

How Are Tax Credits and Property Tax Savings Handled?

The calculator begins with federal and North Dakota state credit percentages set to 0%. Its informational text states that the residential federal Section 25D credit ended for systems placed in service after December 31, 2025, and that North Dakota does not offer a state solar income tax credit.

The code does not independently verify these legal descriptions. It calculates a credit from any percentage entered, even if the entered percentage does not correspond to an available tax benefit.

The calculator also begins with $0 in annual property tax savings. Its accompanying information describes no statewide residential solar property tax exemption in North Dakota.

If a positive property tax savings amount is entered, the calculator adds that amount to projected financial benefits every year for all 25 years. It does not calculate property tax savings from assessed property value, local tax rates, or exemption eligibility.

The displayed badges labeled “Voluntary Net Metering” and “No State Tax Credit” are informational. They do not verify a particular household’s utility arrangement or tax eligibility.

Important Calculation and Display Limitations

The calculator formats dollar amounts as whole dollars, energy amounts as whole kilowatt-hours, solar offset as a rounded percentage, and estimated carbon dioxide offset to one decimal place.

There are three important display issues in the current implementation:

Year 1 Self-Use kWh: This result row currently displays the self-consumption amount calculated during year 25, rather than the actual first year.
Year 1 Export kWh: This row also displays the year-25 exported electricity amount instead of the first-year amount.
Net Year 1 Savings: This row currently displays the positive 25-year net savings amount, or $0 if that amount is negative. It does not display the model’s calculated first-year savings.

For example, under the default settings, the actual calculated first-year savings are $1,134, while the row labeled “Net Year 1 Savings” displays $13,060. That displayed amount corresponds to the positive 25-year net savings result.

The main payback and 25-year net savings outputs are calculated from accumulated annual savings. The mislabeled individual rows should not be interpreted as first-year results until the display logic is corrected.

The model also does not separately calculate financing interest, maintenance expenses, equipment replacement costs, or changes in the timing of tax benefits. Actual outcomes may differ because of electricity prices, system performance, utility terms, and other ownership expenses.

Frequently Asked Questions

How much electricity does an 8 kW solar system produce in North Dakota?

Using the calculator’s assumption of 1,350 kWh per installed kilowatt, an 8 kW solar system produces an estimated 10,800 kWh in its first year. Actual production may vary with location, roof orientation, shading, weather, and equipment performance. The model assumes solar production decreases by 0.5% annually after the first year.

Does North Dakota have a state solar tax credit in this calculator?

The North Dakota state credit field starts at 0%, and the calculator’s informational text states that no state solar income tax credit is available. However, the field remains editable, and a positive entered percentage reduces the calculated net system cost. The tool does not determine whether an entered credit is legally available.

Does the calculator include a federal solar tax credit for 2026?

The direct federal credit begins at 0%. The calculator’s text states that the residential Section 25D credit ended for systems placed in service after December 31, 2025. However, the calculator does not evaluate installation dates or personal tax circumstances. Verify the applicable federal tax rules before entering a nonzero credit percentage.

How does net metering affect solar savings in North Dakota?

The calculator values exported solar electricity using the entered export credit rate. Solar electricity consumed at home is valued at the retail electricity rate. Because the utility dropdown does not automatically apply individual export tariffs, homeowners should use rates appropriate to the scenario they want to estimate and verify actual program terms with their utility.

How does the calculator determine the solar payback period?

The payback period is the first whole year when cumulative estimated savings reach or exceed net system cost. The calculation includes electricity self-consumption value, export credit value, entered property tax savings, and deductions for annual utility solar fees. The calculator checks each year over a maximum projection period of 25 years.

Does adding battery storage automatically increase estimated savings?

No. The calculator includes a battery storage or high daytime self-use checkbox, but the calculation does not use its selected state. To explore different self-consumption assumptions, adjust the daytime self-consumption percentage. The tool does not separately estimate battery purchase costs, storage capacity, charging losses, or battery replacement expenses.

Can the 25-year net solar savings result be negative?

Yes. A negative 25-year net savings result means cumulative modeled financial benefits are smaller than the calculated net installation cost. This can occur with high system costs, low electricity values, limited export compensation, or recurring utility fees. The result is a projection based on selected assumptions rather than a guarantee of financial performance.

Table of Contents