SunPowerPeek

Alaska vs South Dakota Solar Comparison

South Dakota gets more sun (4.6 hrs/day) while Alaska has the faster payback (10.5 years).South Dakota offers higher 20-year savings at $26,200.

Alaska

3.0 hrs

10.5yr payback

$22,800

20yr savings

South Dakota

4.6 hrs

11.2yr payback

$26,200

20yr savings

Side-by-Side Comparison

MetricAlaskaSouth Dakota
Peak Sun Hours3.0 hrs4.6 hrs
Cost per Watt$3.20$3.10
6kW System Cost$19,200$18,600
Federal Tax Credit30%30%
State Tax CreditNoneNone
State RebateNoneNone
Net MeteringFull Net MeteringPartial Net Metering
Electricity Rate24.21¢/kWh13.74¢/kWh
Payback Period10.5 years11.2 years
20-Year Savings$22,800$26,200

Verdict

South Dakota is the better state for solar ROI with $26,200 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 Alaska or South Dakota?

South Dakota gets more sun (4.6 peak hours/day vs 3). Alaska has a faster payback (10.5 years) and South Dakota offers higher 20-year savings ($26,200).

How do solar costs compare between Alaska and South Dakota?

A 6kW system costs $19,200 in Alaska vs $18,600 in South Dakota before incentives. Both qualify for the 30% federal tax credit.

Explore More

Was this data helpful?

Data verified March 2026 · Source: NREL, DSIRE, EIA