Net Metering
If you are a customer of an investor-owned electric utility in North Dakota, you can connect a renewable energy or combined heat and power system up to 100 kW and offset your own use through net metering. Any excess generation at the end of a monthly billing period is purchased by the utility at its avoided cost rate, and you keep the renewable energy credits tied to your own load. This is not available if you are served by a municipal utility or electric cooperative, so check with your utility to confirm eligibility and how to apply.
Net metering lets your customers of investor-owned utilities in North Dakota pair solar, wind, hydro, biomass, geothermal or CHP systems up to 100 kW with bill offsets, and monthly excess is bought at avoided cost. Systems for customers of municipal utilities or electric cooperatives do not qualify, and utilities may charge for metering costs tied to production monitoring. Customers keep RECs for their own load while RECs from excess generation go to the utility with compensation, and the PSC says the policy remains available despite a legislative committee objection.
This policy was adopted by the North Dakota PSC in 1991 and covers renewable and CHP systems up to 100 kW for customers of investor-owned utilities only, across residential, commercial, industrial, agricultural, government, school, nonprofit and other sectors. Monthly net excess generation is purchased at the utility's avoided cost, there is no specified statewide aggregate capacity limit, and utilities may recover metering costs for production monitoring. RECs for customer load stay with the customer while RECs from net excess generation convey to the utility with compensation, and the legislature's Administrative Rules Committee has objected to the PSC's authority even though the PSC says net metering is currently available.
Program details
- Program ID
- 285
- Last updated
- 3/30/2026
Eligibility
- Sectors
- commercial industrial local government nonprofit residential schools state government federal government agricultural multifamily residential low income residential
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) biomass hydroelectric municipal solid waste combined heat & power wind (small) hydroelectric (small)
Program summary
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 on the aggregate capacity of all net-metered systems.
REC Ownership
Customers retain ownership of renewable energy credits (RECs) associated with the customer's load, while RECs associated with NEG convey to the utility (with compensation to the customer-generator).
Utilities may recover metering costs associated with production monitoring from a net-metered system.
* The North Dakota Legislative Council's Committee on Administrative Rules has objected to the PSC's provisions for net metering, asserting that the PSC violated legislative intent by establishing net metering. However, according to the PSC, net metering is currently available to qualifying customers in North Dakota.
Contact & resources
- Contact email
- jlein@nd.gov
Please verify current program details with the administering agency before making any financial decisions.
