Rebates list

North Dakota Rebates and Incentives Summary

North DakotaNorth Dakota has a population of just under 650,000, according to the U.S. Energy Information Administration (EIA), a small population for a state of its size, considering Colorado has a population of roughly five million. Because of its small population, North Dakota is one of the nation’s lowest energy consumers, ranking 46th in the nation. Although per capita, its citizens consume at one of the highest rates in the country, largely due to the extreme cold temperatures the state is subjected to during the winter months.

In 2005, 95 percent of North Dakota’s fuel for electricity came from coal, with only 1 percent coming from renewable energy sources like wind and solar.

Though North Dakota currently relies almost entirely on coal-fired power plants for its electricity needs, it is a state rich with renewable energy potential. Not surprisingly, for a state boasting 68,975 square miles of mostly open land, North Dakota’s primary renewable energy source is wind power. Still, the state has incentives for people interested in incorporating not just wind energy, but also solar, and geothermal energy devices into their homes and businesses.

North Dakota has a lot of room for improvement in the area of renewable energy, which Governor John Hoeven said he was determined to promote in his 2007 State of the State address: “Today, many states are adopting a goal to derive 25 percent of our nation's energy from renewables by 2025. We can achieve that...”

In fact, North Dakota more than doubled its generation of energy derived from renewable sources between 2004 and 2006, contributing a total of 413 million kilowatt hours (kWh) to their overall energy production—403 million of which came from wind power. Considering the average U.S. household consumes about 11,000 kWh per year, North Dakota was able to power 41,300 homes using renewable energy in 2006.

In addition to having a renewable portfolio standard in place, the state plans to increase its installed capacity for wind generation to 5,000 megawatts by 2020, under the EmPower North Dakota Commission. To that end, the state is offering three million dollars' worth of tradable income tax credits for the installation of geothermal, solar, and wind energy devices, creating a variety of incentives for the use and production of renewable energy. These include property-tax reductions or exemptions, tax credits, and rebates.

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Building Energy Code

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

Current Code

On January 1st, 2017, the new state building code went into effect. It consists of the 2015 International Building Code (IBC), 2015 International Residential Code (IRC), and 2015 International Mechanical Code (IMC). Energy provisions are voluntary and based on the 2015 International Energy Conservation Code (IECC) for both the commercial and residential codes. 

North Dakota is

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Missouri River Energy Services - Bright Energy Solutions

Bright Energy Solutions is a unique portfolio of energy efficiency cash-incentive programs that will help residential and business customers reduce their electric energy costs and operate more efficiently. The program is offered to residential and business customers of participating municipal utilities who are members of Missouri River Energy Services.

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Net Metering

Eligibility and Availability

North Dakota's net metering policy, adopted in 1991 by the state Public Service Commission (PSC), applies to renewable energy systems and combined heat and power (CHP) systems up to 100 kilowatts (kW) in capacity.* Net metering is available to all customers of investor-owned electric utilities; it is not available to customers of municipal utilities or electric cooperatives.

Net Excess Generation

If a customer has net excess generation (NEG) at the end of a monthly billing period, the utility must purchase the NEG at the utility's avoided cost rate.

Aggregate Capacity Limit

There is no specified statewide limit

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North Dakota Solar/Wind Easements and Laws

Solar Policy

North Dakota's solar easement law is similar to those established by many other states. The law allows a property owner to obtain a solar easement from another property owner for the purpose of ensuring adequate exposure of a solar energy system to sunlight. A solar easement must include:

  • The vertical and horizontal angles, expressed in degrees, at which the solar easement extends over the real property subject to the solar easement;
  • Any terms, conditions, or both under which the solar easement is granted or will be terminated; and
  • Any provisions for compensation of the owner of the property
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Northern Plains EC - Commercial Energy Efficiency Loan Program

Northern Plains Electric Cooperative is a member-owned electric cooperative that serves customers in east-central North Dakota. This EMC offers a low-interest loan program for commercial, industrial, agricultural, and local government customers that wish to undertake energy efficiency projects. Customers should contact Northern Plains, or visit the program website, for more information on how to apply for this loan.

Loans can be made to for-profit businesses, not-for-profit organizations, and local governments. Projects include, but are not limited to:
  • Small and medium-sized business and cooperatives engaged in manufacturing, retail, service and tourism industries
  • Community projects relating to water/wastewater, healthcare, education, telecommunications, public
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Otter Tail Power Company - Energy Efficiency Rebate Program

Otter Tail Power Company offers incentives to all of its customers to install energy efficient equipment in their homes or facilities. Rebates are available for high-efficiency electric heating technologies such as demand control equipment, water heaters and thermal storage technologies. Receipts must be turned in with the program application in order to qualify for the rebate. Contact Otter Tail Power Company or visit the utility's website for more program information.

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Renewable and Recycled Energy Objective

In March 2007, North Dakota enacted legislation (H.B. 1506) establishing an objective that 10% of all retail electricity sold in the state be obtained from renewable energy and recycled energy by 2015. The objective must be measured by qualifying megawatt-hours (MWh) delivered at retail, or by credits purchased and retired to offset non-qualifying retail sales. This objective is voluntary; there is no penalty or sanction for a retail provider of electricity that fails to meet the objective. Municipal utilities and electric cooperatives that receive wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate their renewable

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Renewable Energy Property Tax Exemption

North Dakota exempts from local property taxes any locally-assessed* solar, wind, or geothermal energy device serving a new or existing building or structure. These systems may be designed to provide heating or cooling or to produce mechanical power, or any combination of these, or to store any of these. Stand-alone systems and systems that are part of conventional systems are eligible. For solar, wind, or geothermal systems that are part of a conventional energy system, only the renewable energy portion of the total system is eligible. This exemption is applied only during the 5-year period following installation. To apply for

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Renewable Energy Tax Credit

Note: This credit expired on December 31, 2014, and is not allowed for devices installed on or after January 1, 2015. However, wind energy systems whose construction began prior to January 1, 2015 and were completed by January 1, 2017 are eligible for this credit.

North Dakota offers a corporate income tax credit for the cost of acquiring and installing a geothermal, solar, biomass, or wind energy system in a building or on a property owned or leased by a North Dakota taxpayer. For systems installed after December 31, 2000, and before January 1, 2015, the credit is equal to

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Residential Energy Efficiency Rebates (Offered by 5 Utilities)

Bright Energy Solutions offers energy efficiency cash incentive programs to residential customers of municipal utilities that are members of Missouri River Energy Services. In North Dakota, this includes:

  • Cavalier Municipal Utilities
  • Hillsboro Municipal Utilities
  • Lakota Municipal Light Plant
  • Northwood Municipal Utilities
  • Valley City Public Works

For residential customers, rebates are available for ENERGY STAR clothes washers, dehumidifiers, room air conditioners, and heating and cooling systems. Customers who choose a certified Quality Install contractor to install their HVAC system can receive an additional $100 rebate. Rebate values can also be found here.

 

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Sales and Use Tax Exemption for Electrical Generating Facilities

Electrical generating facilities are exempt from sales and use taxes. The exemption is granted for the purchase of building materials, production equipment, environmental upgrade equipment, and other tangible personal property that is used for constructing or expanding the facility. In order to qualify, the facility must have at least one electrical generation unit with a capacity of at least 100 kilowatts (kW).  For wind facilities, the equipment must be purchased between July 2011 and January 2017. For non-wind and non-coal facilities, the facility must sell the electricity it produces or use it on site for a business-related activity. In order to

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Wind Easements

North Dakota allows property owners to grant an easement that ensures adequate exposure of a wind energy system to wind. The easement runs with the land benefited and burdened, and terminates upon the conditions stated in the easement. Easements are presumed to be abandoned if construction or operation has not begun within 36 months. The statute includes a process and timeline for termination of the easement in this event.

The statutes authorizing the creation of wind easements include several provisions to protect property owners. For example, a wind easement may not make the property owner liable for any property tax

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Xcel Energy - Energy Design Assistance

Xcel Energy offers Energy Design Assistance (EDA) to qualified Colorado business customers. EDA gives customers a comprehensive approach to energy and cost savings for businesses considering new construction or renovation projects. EDA services can be tailored to the unique needs of each business. Featured services include: energy consulting services and predictive energy modeling, free to participants; enhanced services, including help toward a green building certification and early analyses in areas such as daylighting, lighting, massing, and heating, ventilation and air conditioning (HVAC); construction rebates for a package of whole building energy opportunities from envelope, lighting, and cooling to unique opportunities

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Xcel Energy - Residential Energy Efficiency Rebate Programs

In addition to home energy audits, Xcel Energy offers rebates to North Dakota residential customers for the purchase of energy efficient heating and water heating technologies. Through the Energy Audit offering, residents can receive audits at 75% less than market value to help them determine the right energy-saving improvements for their homes. Contact Xcel for more information on this program.
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