South Dakota Solar Panel Savings Calculator

South Dakota Solar Panel Savings Overview

South Dakota receives an average of 4.7 peak sun hours per day, providing a solid foundation for residential solar energy. With electricity rates averaging 12.8¢ per kWh — below the national average — longer payback periods are typical but savings still add up over time. The typical South Dakota homeowner with a 6kW system can expect to save approximately $1,020 per year.

Solar Energy Production in South Dakota

A standard 6kW residential solar panel system in South Dakota produces approximately 8,234 kWh per year. This accounts for a system efficiency factor of 80%, which includes panel degradation, inverter losses, and temperature effects. At 4.7 peak sun hours per day, South Dakota offers good solar production — enough to offset a significant portion of typical household electricity consumption.

South Dakota Electricity Rates and Solar Context

The average residential electricity rate in South Dakota is 12.8¢ per kWh according to EIA data. While this rate is below the national average, electricity costs are rising approximately 2-3% per year. Over a 25-year system lifetime, your cumulative savings will still be substantial. With utility rates increasing annually, your solar savings grow each year.

South Dakota Solar Incentive Programs

No state incentives. No state income tax. Federal 30% ITC applies. All South Dakota residents are eligible for the federal 30% Investment Tax Credit (ITC), which reduces the cost of a solar system by 30% of the total installed price. South Dakota also offers full retail net metering, allowing homeowners to earn credits for excess solar energy sent back to the grid.

Net Metering in South Dakota

South Dakota has full retail net metering, which is a significant financial benefit for solar homeowners. Under full retail net metering, you receive credit at the full retail electricity rate for every kilowatt-hour of excess solar energy you export to the grid. This is the most favorable policy for solar homeowners.

Best Cities for Solar in South Dakota

The best cities for solar panels in South Dakota include Sioux Falls, Rapid City, Aberdeen, Brookings, Watertown. Solar production can vary by location within the state due to differences in cloud cover, local shading, and microclimates. Southern-facing roofs with minimal shading produce the most energy. Homeowners in Sioux Falls and Rapid City can typically expect production close to the state average of 4.7 peak sun hours per day.

How South Dakota Compares to Neighboring States

Compared to neighboring states, South Dakota (12.8¢/kWh, 4.7 sun hours) has better sun exposure and has similar electricity rates. See how solar savings compare in North Dakota, Minnesota, and Iowa.