South Dakota solar panels: The complete guide in 2024
Data updated Dec 10, 2024
Interested in going solar? You'll need to install a 16.09 kW solar panel system to cover the average electric bill in South Dakota, which will cost you about $31,438 after the federal tax credit.
Cost for an average system in South Dakota
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
See your solar savings
Compare multiple offers and save up to 20%
- Overview
- Solar cost
- Incentives
- Electricity cost
- Companies
Going solar in South Dakota
Looking to power your home with clean, sustainable energy that’ll boost your energy independence? Going solar in South Dakota reduces your carbon footprint and your reliance on the utility electric grid.
Factor in the federal solar tax credit, and you can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your investment.
Here's our guide to going solar in the Mount Rushmore State.
Cost
How much do solar panels cost in South Dakota?
Solar panels cost a lot to install, but they can save tons of money over time by shrinking or eliminating your electricity bills. The average South Dakota homeowner needs a 16.09 kW solar panel system to cover their electricity needs, which comes out to $44,912 before incentives. Prices range from $38,175 to $51,649 before incentives. After the federal tax credit, that drops by 30%.
Over 100 South Dakota homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 9.8 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period. The best way to speed up your payback period and squeeze the most possible value out of your solar panels is to pair your panels with an energy storage system
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings.
Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
)
Incentives
What are the best solar rebates and incentives in South Dakota?
Incentives help bring solar's price tag down considerably in South Dakota. Here are the major ones to know about:
Incentive | Average savings in South Dakota | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $13,474 | Lowers your solar panel system's cost by 30% |
South Dakota solar property tax exemption | $50,000 or 70% of the assessed value of eligible property (whichever is greater) | If you use solar energy as a source of power, you won't need to pay a property tax for most of the value your solar panels add to your property. |
Is net metering available in South Dakota?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Unfortunately, South Dakota doesn't offer a state-wide net metering program. However, Otter Tail Power Company may allow new metering if you connect your solar panel system to the grid.
Equipment
Equipment quality
Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2024, the most popular solar panels can produce about 400 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.
You should also make sure to select a solar inverter setup that makes sense for your roof’s layout.
And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter.
Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output further into the future.
Companies
Who are the best solar installers in South Dakota?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in South Dakota:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
)
resources
Top solar resources for South Dakota
- South Dakota Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- South Dakota PUC Solar FAQs
Learn about SD solar programs from the state government.
- South Dakota Public Utilities Commission
Read more about how utility companies work in SD.
- South Dakota Electricity Profile (EIA)
Learn about SD energy production and prices.
- SD State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in SD.
Real homes. Real savings.
Helping customers make informed decisions since 2009.
Learn more about solar
Are solar panels worth it in 2024? Usually, but not always
Written by Emily Walker
May 29, 2024
8 min read
Explore heat pumps, the latest in clean heating & cooling technology.
