North Dakota Energy Rebates 2026
North Dakota homeowners benefit from relatively low electricity rates (around 11–14 cents/kWh) but face extreme cold that drives high heating costs—natural gas and propane dominate residential heating. Federal HEAR rebates provide up to $14,000 for eligible households switching to electric heat pumps and appliances. The Section 25C heat pump tax credit and Section 25D solar tax credit both expired December 31, 2025 under the One Big Beautiful Budget Act, eliminating the federal tax incentive path that existed through 2025. North Dakota has no state-level energy efficiency rebate program beyond the federal programs, making HEAR the primary incentive available to most residents.
HOMES Rebate Program in North Dakota
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
HOMES whole-home rebates (up to $8,000) survived OBBBA and are available in North Dakota. Rebates are tied to verified energy savings—20% savings threshold for base rebates, 35%+ for enhanced rebates. North Dakota's Office of Renewable Energy & Energy Efficiency (OREEE) coordinates federal program delivery.
HEAR (HEEHRA) Rebates in North Dakota
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
North Dakota State Incentive Programs
ND Weatherization Assistance Program
Federally-funded weatherization for income-eligible North Dakota households. Services include insulation, air sealing, heating system upgrades, and health/safety improvements. Income limit: ≤200% federal poverty level. Delivered through regional Community Action Agencies across the state. Priority given to elderly, disabled, and households with children.
Learn moreLow Income Home Energy Assistance Program (LIHEAP)
Helps income-eligible North Dakota households pay heating and cooling bills. This is a bill assistance program, not an equipment rebate program. Income limit: ≤150% federal poverty level. Annual benefit amounts depend on household size, income, and energy costs.
Learn moreUtility Rebate Programs in North Dakota
Area Median Income (AMI) in North Dakota
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Fargo Metro (Cass County) | ||
| Bismarck Metro (Burleigh County) | ||
| Grand Forks Metro |
Frequently Asked Questions
Are federal heat pump tax credits still available in North Dakota in 2026?
No. The Section 25C nonbusiness energy property credit—which covered heat pumps at 30% up to $2,000—expired December 31, 2025 under the One Big Beautiful Budget Act (P.L. 119-21). North Dakota homeowners cannot claim this credit for 2026 installations. The HEAR rebate (up to $8,000 for heat pumps, income-qualified) is now the primary federal heat pump incentive.
Do heat pumps work in North Dakota winters?
Modern cold-climate heat pumps are rated to -13°F to -22°F and can cover most of North Dakota's winter temperature range. However, extreme cold snaps reaching -30°F or below (common in western ND) typically require a backup heating source—either a dual-fuel system pairing the heat pump with a gas furnace, or electric resistance backup. For homes currently on propane or fuel oil, a heat pump can significantly reduce heating costs even with the backup system.
Does North Dakota have a state energy rebate program?
North Dakota does not have a standalone state residential energy rebate program beyond the federal HEAR and HOMES programs. The state's Office of Renewable Energy & Energy Efficiency (OREEE) administers federal programs and provides technical assistance. The main non-federal options are utility rebates through Xcel Energy or MDU and the Weatherization Assistance Program for income-eligible households.
What is the HEAR rebate amount for heat pumps in North Dakota?
HEAR rebates for heat pumps are up to $8,000 for ducted heat pump systems and $8,000 for ductless mini-splits. To qualify for the full 100% rebate, household income must be at or below 80% of Area Median Income. Households at 80–150% AMI receive 50% rebates. North Dakota AMI thresholds vary by county—Fargo households of 4 qualify at full rebate up to ~$65,600 income.
How to Claim Your North Dakota Rebates
