Many property owners in North Dakota believe that investing in solar panels will be a poor decision considering that it ranks last in the U.S. for solar roof adoption. But in reality, going Solar is the best choice for most property owners in Peace Garden State because it will turn out to be converting their solar power to saving a lot of money.
Aside from getting enough sunshine to power the solar energy system in a year, the solar installation rates have declined by 50% for the past ten (10) years. There are also North Dakota solar incentives and rebates that North Dakotans can enjoy to their full advantage. Find out more below on how to benefit from investing in a solar energy system.
Great news for property owners who are ready to make the switch to renewable energy! North Dakota offers net metering, which is mandatory for all private utility companies. Net metering is a valuable system that helps property owners lower their utility costs by allowing them to sell excess renewable energy back to the grid. When your solar system generates more energy than you consume, the surplus electricity is fed back into the grid. As a result, utility companies provide credits to your electric bill, allowing you to benefit from the excess energy you generate.
The industrial and commercial classes in North Dakota are exempted from paying state sales tax on purchasing an installed solar energy system.
Though the Peace Garden State does not offer committed state rebates for the solar energy system, selected companies like LG provide their private solar incentives and rebates, which are typically crucial. For instance, LG provides a $600 solar rebate on equipment, which your solar installer can assist the property owner in converting for the coming year.
Property owners in North Dakota can save lots of money with solar incentives on the 100% property tax exemption for five (5) years. Adding a solar system to your home in North Dakota won't result in a reassessment of your property's value for tax purposes. Before installing the system, you were paying property taxes based on the original value of your home.
Suppose you are ready to invest in a solar energy system and thinking of a financing option. It's possible in North Dakota, with zero ($0) down options. Property owners can explore a low-interest HELOC or Home Equity Line of Credit. HELOCs are usually presented as a percentage of the worth of the property's value with an adjustable interest rate connected to the principal interest rate.
The Solar Investment Tax Credit lets you subtract 26% of your solar system's cost from your Federal income tax bill! Remember that this credit only applies to those who own their renewable energy system, so consider this when deciding to buy or lease your solar panels.
And if you invest in a solar panel by the end of 2032, the federal tax credit is 30% of the price of your solar panel system. This means 30% off the system's total cost, including equipment, labor, and permitting.
Sample Calculation: Suppose your solar energy system has a total cost of $20,000. In that case, you would receive a federal solar tax credit of $6,000, equivalent to 30% of the system's total cost.
By 2033, the federal tax credit will fall to 26%.
North Dakotans who invest in the solar energy system can substantially cut-cost on their electric bills and lessen their dependence on coals. Fortunately, the State offers essential solar incentives, which North Dakotans can benefit from!
So if you are considering investing in a solar system, look for a reputable company to assist you in evaluating your solar incentives and rebates options.
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