Solar Quotes in South Dakota
No net metering
- The South Dakota PUC says: "South Dakota does not compensate solar generation at a net metered rate." Regulated utilities buy power from small solar facilities at avoided cost, and rates for solar facilities under 100 kW are filed with the PUC. Source: https://puc.sd.gov/commission/publication/solarfaq.pdf (accessed 2026-10-20)
Little policy at the state level
We didn't find a statewide incentive as of October 2026.
A note on the federal tax credit
The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed. Source: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb (accessed 2026-10-20). This page isn't tax advice.
Is solar worth it in South Dakota?
It depends on your bill, roof and utility rules. Here is an estimate for a home with a $150 monthly electric bill and a south-facing, unshaded roof, before any incentives:
- Residential electricity averaged an estimated 14.50¢/kWh in South Dakota (January–July 2026), below the U.S. average of 18.19¢ (36 of 51, highest first). Source: EIA Electric Power Monthly, Table 5.6.B (accessed 2026-10-20)
- Small rooftop systems in South Dakota produced an estimated 1,522 kWh per kW of panels in 2024 (2024 small-scale solar generation divided by average 2023–2024 small-scale capacity). Source: EIA Electric Power Annual 2024, Tables 3.21 and 4.7.B (accessed 2026-10-20)
- Estimated system size: 6.4–8.6 kW, producing about 11,415 kWh a year (estimated).
- Estimated installed cost: $22,500–$39,000 before incentives, using $3.00–$5.20 per watt. Source: Lawrence Berkeley National Laboratory (2024 installed prices, 20th–80th percentile; accessed 2026-10-20)
- Estimated simple payback: 12–28 years. Savings depend on how your utility credits exported energy (see above).
Estimates only, based on public data and simple assumptions. Actual production, cost, and savings vary by home, utility, rate plan, and installer. Not a quote, and not a guarantee of savings. Ask your installer about any state, local, or utility incentives that apply. State and local programs: DSIRE.
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