See how much it will cost to install solar panels for your home in South Dakota
Solar power in South Dakota
Last fact-checked on January 19, 2023, by Catherine Lane
There is quite a bit of room for improvement when it comes to solar power in South Dakota. There are hardly any state-based or utility-based incentives for installing solar. Also, there is no net metering policy in place, so utilities are not required to compensate customers for the excess energy their solar systems produce.
The bright side is that South Dakota does offer a property tax exemption for renewable energy systems. This can save homeowners a lot of money when it comes to their property taxes.
Additionally, South Dakota residents can take advantage of the 26% federal tax credit.
Compare solar quotes from the top solar companies in South Dakota
South Dakota solar power facts
$2.56 watt
Average cost: 5kW solar power system
?8 Years 3 Months
Average payback time
$45,171
Average lifetime savings
?4¢ kWh
Levelized cost of solar energy
19¢ kWh
If you don't get solar
?13,777 kWh
Annual power production
Cash flow graph based on cash purchase of a 10.39kW system
This 10.39kW system would offset 100% of your energy usage if your typical monthly bill in South Dakota is $124, however, your situation may vary so try our solar calculator to get a result tailored to you.
How much can solar panels save you in South Dakota
Average total cost of solar panel installation in South Dakota
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $5,838 | $6,305 |
| 4kw | $7,476 | $8,074 |
| 5kw | $8,960 | $9,677 |
| 6kw | $10,248 | $11,068 |
| 7kw | $11,417 | $12,330 |
| 8kw | $12,432 | $13,427 |
| 9kw | $13,293 | $14,356 |
| 10kw | $14,000 | $15,120 |
How much do solar panels cost in South Dakota?
$2.56 per watt
Cash purchased solar system
Before 26% solar tax credit
$4.06 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in South Dakota?
The advantage of installing solar panels in South Dakota is the state’s property tax exemption. Also, since there are no other rebates available, the amount that homeowners will receive from the federal tax credit will be greater, as the federal tax credit is based on the price of the system after other incentives are applied.
The disadvantage of installing solar panels in South Dakota is that there are little to no state or utility-based incentives. There is no net metering policy, so utilities are not required to provide compensation for excess energy a solar system produces.
However, the combination of the property tax exemption and the 26% federal tax credit still creates the opportunity for great savings. The best time to make the switch to solar in South Dakota is now!
Best solar companies in South Dakota
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Find local information for cities in South Dakota
Compare solar quotes from the top solar companies in South Dakota
How much electricity will solar panels produce in South Dakota
Solar panels produce different amounts of energy in different locations.
Around the Pierre area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,451kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in South Dakota?
Renewable Energy System Exemption
South Dakota homeowners have the opportunity to save on their property taxes when they install a solar system on their home, thanks to the Renewable Energy System Exemption legislation. When a solar system is installed on a home, the value of the home increases, and so do the property taxes. With this statewide policy, the renewable energy system installed will be assessed, and then the first $50,000 or 70% of the assessed system cost, whichever is greater, is exempt from property taxes.
Renewable, Recycled and Conserved Energy Objective
South Dakota’s renewable portfolio standard was enacted in February 2008. The legislation established a voluntary goal stating that 10% of all retail electricity sales in the state should be obtained from renewable energy sources. This standard is out of date and not very ambitious. Not to mention, the standard is voluntary, so utilities are not required to meet it. Because of the weak renewable portfolio standard, utilities are not pressured to create rebates to incentivize their customers to go solar.
South Dakota Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in South Dakota, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in South Dakota using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in South Dakota
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in South Dakota or Pierre ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this South Dakota solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in South Dakota
Check out all of the ways energy providers of South Dakota can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Renewable Energy System Exemption | State | Property Tax Incentive |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
