Solar Panel Savings in Sioux Falls, SD
Calculate how much you can save with solar panels in Sioux Falls, South Dakota. Based on 4.9 peak sun hours/day and 13.2¢/kWh average electricity rate.
4.9
Peak Sun Hours/Day
13.2¢
Avg Rate (¢/kWh)
11 yr
Payback Period
$16k
25-Year Savings
Sioux Falls Solar Overview
Calculate Your Sioux Falls Solar Savings
Sioux Falls average: $116/mo
South-facing roofs produce the most energy
Add $8,000-$12,000 for whole-home battery backup
Annual Production
kWh/year
Annual Savings
per year
Net System Cost
after 30% ITC
Payback Period
break-even time
25-Year Total Savings
$38,837
Monthly Savings
$95
Federal Tax Credit
$5,382
Cumulative Savings vs System Cost
Cost Breakdown
| Item | Sioux Falls | National Avg |
|---|---|---|
| Gross System Cost (6kW) | $17,940 | $17,100 |
| Federal Tax Credit (30%) | -$5,382 | -$5,130 |
| Net System Cost | $12,558 | $11,970 |
| Cost Per Watt | $2.99/W | $2.85/W |
Solar Potential in Sioux Falls
Sun Hours vs National Average
Sioux Falls gets 9% more sun than the national average.
Climate Advantages
- 170 sunny days per year
- Average temperature: 56.6°F — cooler temps actually improve panel efficiency
- Average roof size: 1,595 sq ft — enough for a 88-panel system
Sioux Falls Solar Incentives & Programs
Federal Investment Tax Credit (ITC)
30% of total system cost deducted from federal taxes. For a $17,940 system, that's a $5,382 credit. Valid through 2032.
South Dakota State Incentives
No state solar incentives; federal 30% ITC applies.
Net Metering — Black Hills Energy
Black Hills Energy does not currently offer standard net metering in Sioux Falls. Alternative buyback programs may be available — contact them for details.
Environmental Impact in Sioux Falls
3.6
Tons CO2 Offset/Year
59
Equivalent Trees Planted
0.8
Homes Worth of Energy
Based on 8,585 kWh annual production with a 6kW system. EPA average: 0.417 metric tons CO2 per MWh, 10,632 kWh per US home.
Solar Energy in Sioux Falls, South Dakota
Sioux Falls, South Dakota receives an average of 4.9 peak sun hours per day, providing excellent conditions for residential solar installations. With electricity rates averaging 13.2¢ per kWh from Black Hills Energy, below the national average, but with rates rising 2-3% annually, the long-term savings are still meaningful.
A typical 6kW solar system in Sioux Falls produces approximately 8,585 kWh per year, saving homeowners an estimated $1,137 annually. The system pays for itself in about 11.0 years, after which you enjoy essentially free electricity for the remaining 14+ years of the system's warranty life.
Sioux Falls has a solar penetration rate of 5.1% — showing growing adoption of residential solar, with significant room for expansion. The cost of living index of 102 (national average: 100) is near the national average.
Other Cities in South Dakota
Frequently Asked Questions
How much do solar panels cost in Sioux Falls, SD?
The average cost of a 6kW solar panel system in Sioux Falls is approximately $17,940 before incentives ($2.99/watt). After the 30% federal Investment Tax Credit, the net cost is about $12,558. No state solar incentives; federal 30% ITC applies.
How many peak sun hours does Sioux Falls get?
Sioux Falls, SD receives an average of 4.9 peak sun hours per day and approximately 170 sunny days per year. This is near the national average, providing good conditions for residential solar panels.
What is the solar payback period in Sioux Falls?
The average solar payback period in Sioux Falls is approximately 11 years. After payback, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty. Over 25 years, total savings can reach $15,867.
Does Sioux Falls have net metering?
Sioux Falls does not currently have standard net metering. However, Black Hills Energy may offer alternative solar buyback programs. Contact them for current rates and policies.
Is solar worth it in Sioux Falls, SD?
Yes, solar is a solid investment in Sioux Falls. While the 11-year payback is moderate, you'll still save $15,867 over 25 years. The 30% federal tax credit and local incentives help make solar financially attractive.