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South Dakota Solar Incentives (Rebates, Tax Credits & More in 2024)
By Dan Simms /
Solar Panel Cost in South Dakota (2024 Local Savings Guide)
Here’s a quick look at the estimated cost of solar in South Dakota:
- Average Cost Per Watt: $3.11
- Cost of Average System: $22,859*
- Cost of Energy Without Solar: $60,661
- Payback Period: 12 Years**
- Lifetime Savings of Going Solar: $28,006
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Cost of Solar Panels in South Dakota
Solar panel systems in South Dakota cost around $3.11 per watt, which is well below the national average of $3.33 per watt. The standard system size required to offset the average electric cost of $137 per month in South Dakota is 10.5 kilowatts, which is also below the national average.1 Using these numbers, we can calculate that the typical solar array in SD totals around $32,655 before the 30% federal tax credit, or $22,859 after the credit. This total is lower than most areas throughout the country.
GenPro Energy Solutions
Outstanding Regional Installer
Regional Service
Average cost
Pros
- NABCEP-certified technicians
- Competitive pricing
- Multitude of products and services
Cons
- No leases or PPAs
- Limited warranty coverage
Lakota Solar Enterprises
Solar Veteran
Local Service
Average cost
Pros
- Representatives are experts on local policies
- Focus on sustainable living
- Highly trained technicians
Cons
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
Black Hills Solar
Outstanding Local Installer
Local Service
Average cost
Pros
- Outstanding customer service
- Multitude of products and services
- NABCEP-certified technicians
- Relatively young company
Cons
- No leases or PPAs
- Limited service area
Solar Panel System Installation Cost in South Dakota
Since your solar system will be priced by watt, the size of the system you require will be the most significant cost factor to consider. For every additional kilowatt you need for your home, your total cost will increase by approximately $3,110. You can use the table below to estimate the costs of other standard solar system sizes in South Dakota before and after the federal tax credit is considered.
| Size of Solar Panel System | South Dakota Solar Panel Cost | Cost After 30% Federal Tax Credit |
| 8 kW | $24,880 | $17,416 |
| 9 kW | $27,990 | $19,593 |
| 10 kW | $31,100 | $21,770 |
| 11 kW | $34,210 | $23,947 |
| 12 kW | $37,320 | $26,124 |
| 13 kW | $40,430 | $28,301 |
| 14 kW | $43,540 | $30,478 |
Curious to see which solar installers are the most reputable and reliable in South Dakota? Click here.
See also: Calculate how much you can save by going solar
What Determines the Cost of Solar Panels in South Dakota?
The cost of a solar panel system in South Dakota averages around $22,859 after the federal tax credit is applied, although you could pay as little as $17,416 or as much as $30,478, which is the typical price range.
There are quite a few cost factors at play that will dictate where in this range your system will fall. We’ll discuss each of the most significant factors below.
Solar Equipment
The size of your solar system will be the largest contributing factor toward the final price that you pay. But the type and brand of equipment you choose for your solar panel system will also contribute a great deal.
The upside of solar in South Dakota is the abundant sunlight — despite the state being located in the northern part of the U.S., the Mount Rushmore State gets around 213 sunny days per year, which is more than the national average of 205.
Given that there is no scarcity of sunlight in South Dakota, most homeowners will not feel the need to install the latest high-efficiency panels. Some brands, like the Maxeon panels from SunPower, have super high efficiency ratings and can make the most use of the available sunlight possible.
However, if you have a large roof that receives a great deal of sunlight, you may be able to offset your bills with older, more affordable modules.
South Dakota residents also experience some severe weather, including:
- Intense thunderstorms
- Blizzards
- Ice storms, and
- Tornadoes
These conditions are especially prevalent in the eastern parts of the state.2 The weather can lead to power outages, which can be inconvenient but also dangerous, especially during the winter.
Many residents opt to install solar batteries with their panels as a result, as these can help maintain power through the frequent blackouts. Solar batteries are add-on products that raise the total cost of your system, sometimes by tens of thousands of dollars. As such, batteries and other add-on options can have a drastic impact on your pricing.
Additional Solar Equipment
Many South Dakota solar customers opt to install batteries alongside their panels, specifically because the state doesn’t mandate net metering. Net metering is a policy that lets you send excess electricity that your panels generate to the grid for credits. Those credits can be used to pay down future electricity costs if you ever need to pull from the grid during times of low solar production.
With no net metering policy, customers in South Dakota will have to pay for all electricity they consume at night or on cloudy days when their systems can’t keep up with demand. Alternatively, you could install solar batteries, which give you effective net metering — your excess energy is stored in the batteries instead of being sent to the grid, and then you can call on that for free at any time.
While batteries can help push you toward or above the average solar savings in South Dakota — around $28,006 — they also add between $10,000 and $20,000 to your installation costs, bringing the average total to $52,655 before the ITC or $36,858 after the credit.
Solar Financing in South Dakota
One of the biggest decisions when it comes to installing solar panels is figuring out how you’ll pay for them. The payment method you choose can actually affect your total system cost quite a bit, making it an important thing to consider.
Paying with cash means you’ll have a massive upfront payment, but you won’t pay any interest over time. This method leaves you with the best opportunity for energy savings and the fastest solar panel payback period possible.
Paying with a solar loan is more accessible for most homeowners, but you’ll end up paying interest, which can increase your system cost by thousands over the life of the loan.
Unfortunately, South Dakota doesn’t offer much in the way of state-backed solar financing. The state doesn’t currently have a Property Assessed Clean Energy (PACE) financing program for residential customers, although it does offer this option for commercial customers.
There are also no affordable or accessible options specifically for low-income households looking to install solar.
South Dakota Solar Installation Company
According to the Solar Energy Industries Association (SEIA), there are only five local solar installers in South Dakota, although there are some larger national companies that service the state as well.3 Every installer will charge different prices for the equipment installed and the labor involved in the process, so there will be variances in the pricing among companies.
In many cases, the cost of the company you choose will be at least partially dependent on the equipment brands that the installer carries. Some companies only carry high-quality, high-efficiency equipment, which tends to be significantly more expensive and leads to higher overall installation costs.
For example, GenPro Energy Solutions, one of the top solar installers in South Dakota, installs high-quality brands like Suniva and SolarWorld, while Lakota Solar Enterprises only installs tier-three and lower brands, like Magnum Energy and Sensata. As such, choosing GenPro over Lakota will usually be more costly, although your panels will also tend to be of a higher quality. Just remember that, with no net metering policy in South Dakota, you might want to make sure you choose a company that installs solar batteries alongside panels.
Since the brands and the resulting prices can vary from installer to installer, it’s important to compare companies based on the value provided and not just cost alone.
Additional Considerations and Costs in South Dakota
Below are some additional considerations you should make when choosing a solar installer in South Dakota, although these will have less of an impact on your overall system cost.
- Permits: All municipalities in South Dakota require building permits to be pulled and filed before your solar panels can be installed. Your installer should tackle this process for you, but you should confirm before signing any agreements.
- Licenses: There is no specific solar installer license in South Dakota. However, you should make sure your installation company has a licensed electrician on its team, as this is required by state law.
- Warranties: Solar warranties range from 10 years to 30 years in most cases and cover equipment, installation, performance, roof leaks or some combination of all of these. You should always be aware of your warranties and exclusions before agreeing to a system and installation services.
- HOAs: Unfortunately, South Dakota doesn’t have solar rights laws in place. As such, you’ll need to get permission from your homeowners association (HOA) to install solar panels prior to signing any contracts for installation.
- Environmental zoning: The zoning laws in South Dakota aren’t meant to restrict rooftop solar installation, so it’s unlikely that you’ll run into any issues.
- Batteries: As mentioned above, solar batteries are popular in areas without net metering, like South Dakota. If you want to maximize your savings and don’t mind a higher upfront cost in exchange, you can expect to add between $10,000 and $20,000 to your installation costs. Keep in mind that batteries are also eligible for the federal tax credit.
Watch Below: Learn How Much This Homeowner Paid For Solar and If It Was Worth It
South Dakota Solar Incentives
Most South Dakotans probably find the prospect of paying the average cost of $32,655 to go solar difficult to swallow. Thankfully, the federal government and state government provide some solar incentives to ease the financial burden of going solar and make renewable energy a greater possibility throughout the state. Below, we’ll discuss some of the incentives available to South Dakota homeowners.
| South Dakota Solar Incentive | How it Affects the Cost of Solar Panels in South Dakota |
| Renewable Energy Systems Exemption | In most cases, home improvements that raise the value of your home — including going solar — also raise your property taxes. South Dakota implemented a property tax exemption to guarantee that any bump in value up to $50,000 will not cause your property taxes to go up. For many South Dakota residents, that’s a long-term savings of thousands or even tens of thousands of dollars. |
| Net Metering | Net metering policies allow energy to flow back and forth between your solar system and the grid. Through net metering, you can get utility credits for the energy you send back to the grid when your system produces more than you use. Unfortunately, South Dakota is one of the few remaining states that does not mandate net metering. Individual utility companies must provide the opportunity for interconnection, but there is no standard net metering policy. You’ll have to check with your electricity provider to confirm if net metering is available before you commit. Unfortunately, many major companies don’t offer this option. |
| Local Solar Rebates & Incentives | South Dakota comes up short in the local incentives arena as well. There aren’t any statewide rebates or tax incentives to ease the financial burden of converting to solar. Some utility companies offer energy-efficiency rebates for certain upgrades that your solar installer might offer, like LED lighting, Energy Star appliances and more. You can check the DSIRE database for available incentives from your utility provider. |
| Federal Solar Tax Credit | Luckily, the federal solar investment tax credit (ITC) is available to homeowners across the country, including in South Dakota. This credit on your federal income taxes owed is for 30% of the total system cost, which, in South Dakota, comes out to an average credit of $9,797. |
The Best Solar Panel Brands Available in South Dakota
Although there are only a handful of solar installers native to South Dakota, residents will still have many options when it comes to the brand of panels they want.
The table below includes pricing information for some of the top solar panel brands available in South Dakota to help you decide which ones are likely to suit your budget.
| Solar Panel Brand | Average Cost Per Watt ($-$$$$$) |
| LG Solar | $$$ |
| Canadian Solar | $$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
Ready to see what your solar panel system will cost? Just select one of our top providers below, and we’ll connect you with a local solar installer that can provide a free estimate for your system.
Read More About Going Solar
- What Are the Best Solar Installers in South Dakota?
- Is it Worth Going Solar in South Dakota?
- How Much Can You Save With Solar Incentives in South Dakota?
The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.
FAQs: Solar Panel Cost South Dakota
The EcoWatch team gets questions daily from South Dakota homeowners about the benefits and costs of going solar. Below are some of the questions we see most frequently, which might help you decide if a solar conversion is right for you. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
The average system size needed in South Dakota is 10.5 kilowatts. At a typical cost per watt of $3.11, that’s a standard installation cost of $32,655 before the 30% federal tax credit, or $22,859 after the credit is applied.
However, you might very well find that your own totals vary by thousands of dollars. Every PV system needs to be customized for the home on which it’s installed, and the size you need will be based on your monthly energy needs (how many kilowatt-hours you use), how much sun your property gets, the direction your roof faces and more. Most homeowners in South Dakota spend between $17,416 and $30,478 after the tax credit.
Yes, absolutely! Installing a photovoltaic system will bump up your property value in South Dakota as long as you buy the equipment with cash or with a solar loan. Solar leases and power purchase agreements (PPAs) won’t provide the same benefit.
If you do own your system, you can expect it to increase your property value. Estimates from Zillow suggest that a solar array could improve your home’s value by 4.1%.5 In South Dakota, where the average home value is $291,081 at the time of publication, that’s a typical increase of $11,934, more than half the cost of going solar (after the federal tax credit).6
Solar leases are helpful for homeowners who cannot afford to buy their system in cash and can’t secure solar financing. However, with solar loans becoming more enticing and more widely available, the need for solar leases is dwindling, and buying your panels is almost always a better option.
A solar lease won’t give you access to the same benefits that buying your panels does. For example, you won’t get the federal tax credit — an average of $9,797 — and your home value won’t increase with a lease — an additional average value of $11,934 you’ll miss out on. Solar leases also take much longer to pay themselves off, whereas buying or financing leads to a much more rapid and beneficial solar panel payback.
It is possible to eliminate your utility bills in South Dakota by converting to solar, but it’s much more challenging than in most states because there is no mandated net metering program. Most homeowners will need a solar battery for energy storage to reduce their electricity costs to $0 per month.
The price of your solar system will, of course, be an important factor to consider. However, most South Dakotans find that the efficiency of the equipment is more crucial. Since there is no net metering mandate, solar customers in SD will naturally struggle to eliminate their electric bills. Adding a solar battery will certainly help, but most will find that they also need to maximize energy production at all times as well.
High-efficiency, monocrystalline panels will often be necessary to combat the relatively high electricity rates in South Dakota as well. Homeowners find that paying more for higher-quality equipment is typically more cost-effective overall and yields a higher return on investment than cheaper polycrystalline options.
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A+Outstanding Regional Installer
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