Alabama vs South Dakota Solar Comparison
South Dakota gets more sun (4.6 hrs/day) while Alabama has the faster payback (11.2 years).Alabama offers higher 20-year savings at $28,400.
Alabama
4.5 hrs
11.2yr payback
$28,400
20yr savings
South Dakota
4.6 hrs
11.2yr payback
$26,200
20yr savings
Side-by-Side Comparison
| Metric | Alabama | South Dakota |
|---|---|---|
| Peak Sun Hours | 4.5 hrs | 4.6 hrs |
| Cost per Watt | $2.95 | $3.10 |
| 6kW System Cost | $17,700 | $18,600 |
| Federal Tax Credit | 30% | 30% |
| State Tax Credit | None | None |
| State Rebate | None | None |
| Net Metering | Partial Net Metering | Partial Net Metering |
| Electricity Rate | 14.87¢/kWh | 13.74¢/kWh |
| Payback Period | 11.2 years | 11.2 years |
| 20-Year Savings | $28,400 | $26,200 |
Verdict
Alabama is the better state for solar ROI with $28,400 in 20-year savings and a 11.2-year payback period. South Dakota has more sun exposure at 4.6 hrs/day, making it ideal for maximum energy production. Both states qualify for the 30% federal solar tax credit.
Frequently Asked Questions
Is solar better in Alabama or South Dakota?
South Dakota gets more sun (4.6 peak hours/day vs 4.5). Alabama has a faster payback (11.2 years) and Alabama offers higher 20-year savings ($28,400).
How do solar costs compare between Alabama and South Dakota?
A 6kW system costs $17,700 in Alabama vs $18,600 in South Dakota before incentives. Both qualify for the 30% federal tax credit.
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Data verified March 2026 · Source: NREL, DSIRE, EIA