North Dakota Solar Rebates

At the northern end of the Great Plains sits North Dakota. In terms of renewable energy, and relative to the surrounding states, it would seem that North Dakota is sitting on some kind of throne way up there in the colder reaches of the plains. Indeed, like so many other states across the nation, North Dakota has taken some seriously renewable strides in recent years, including passage of a renewable portfolio standard that requires 10% renewable energy sources by 2015. The only thing lacking is any kind of penalty for utilities who do not comply. But it is a step, and there are a few more that North Dakota homeowners will find especially appealing. Here they are:

TAX CREDITS

Geothermal, Solar, and Wind Property Exemption

• Under this law, 100% of a solar energy system (passive or active) is exempt from property taxes for five full years.

Renewable Energy Tax Credit

• A personal tax credit of 15% (3% for 5 years) is available to residential owners of solar energy systems.
• No maximum incentive is specified and excess credit for a tax year may be carried over for up to five years. Interestingly, that excess credit may also be sold, assigned, or transferred to a power purchaser as well.
• Currently, the credit expires on January 1, 2011.

NET METERING

• Solar thermal electric and photovoltaic systems are eligible for net metering under North Dakota law.
• Systems must be under 100 kW in size and only investor-owned utilities are required to participate.
• Net excess generation, or electricity produced in surplus of the homeowner's needs, must be bought by the utility at the avoided-cost rate.

The fundamentals of a real progressive solar and renewable incentive base are here. Property tax exemptions are a big saver for homeowners, although there are better tax credit programs. Nonetheless, North Dakota is obviously making a concerted effort to wean itself off fossil fuels and deserves applause for that.

USEFUL LINKS

• North Dakota Department of Commerce
• North Dakota Public Service Commission
• Office of State Tax Commissioner
• DSIRE: North Dakota
• Solar Power Rocks: North Dakota