Solar Panels in South Dakota2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in South Dakota.
$16,000–$27,000
Avg system cost
$11,200–$18,900
After 30% ITC
4.8 hrs/day
Peak sun hours
$0.117/kWh
Avg rate
Is Solar Worth It in South Dakota?
Based on a home with a $150/month electric bill in South Dakota
Est. system size
8.1 kW
Gross cost
$23,428
Federal tax credit
−$7,028
Net cost
$16,400
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 9.1 years — then 10 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
South Dakota Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
South Dakota State
State Incentive
Net metering available; no state credit
Additional South Dakota Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: No exemption — solar adds to assessed value
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in South Dakota by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $942,926/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,320,097/yr |
| 9 kW | $22,091,040 | $15,463,728 | $1,697,268/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,263,023/yr |
* Costs based on $2.90/W national average. South Dakota installer pricing may vary ±15%.
Get Your Exact South Dakota Solar Estimate
Enter your monthly bill and address for a personalized savings report using actual South Dakota electricity rates.
Get Free Solar Quotes in South Dakota
Compare quotes from certified South Dakota solar installers — free, no obligation.
Frequently Asked Questions — Solar in South Dakota
How much do solar panels cost in South Dakota?
Solar installation in South Dakota typically costs $16,000–$27,000 before incentives. After the 30% federal tax credit, most homeowners pay $11,200–$18,900 net.
Is solar worth it in South Dakota?
Yes — South Dakota homeowners benefit from 4.8 average peak sun hours per day. The 30% federal ITC combined with net metering available; no state credit make the financial case strong for most homeowners.
What state incentives are available for solar in South Dakota?
Net metering available; no state credit. On top of state incentives, all South Dakota homeowners qualify for the federal 30% Investment Tax Credit (ITC).
How long is the payback period for solar in South Dakota?
Based on South Dakota's average electricity rate of $0.117/kWh and 4.8 peak sun hours, most homeowners see payback in 9.1–12 years. Systems then produce free electricity for 15–20+ more years.
Does South Dakota have net metering?
Yes — South Dakota has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.