Arizona vs South Dakota Solar Comparison
Arizona gets more sun (6.5 hrs/day) while Arizona has the faster payback (6.8 years).Arizona offers higher 20-year savings at $42,500.
Arizona
6.5 hrs
6.8yr payback
$42,500
20yr savings
South Dakota
4.6 hrs
11.2yr payback
$26,200
20yr savings
Side-by-Side Comparison
| Metric | Arizona | South Dakota |
|---|---|---|
| Peak Sun Hours | 6.5 hrs | 4.6 hrs |
| Cost per Watt | $2.70 | $3.10 |
| 6kW System Cost | $16,200 | $18,600 |
| Federal Tax Credit | 30% | 30% |
| State Tax Credit | 25% | None |
| State Rebate | $1,000 | None |
| Net Metering | Full Net Metering | Partial Net Metering |
| Electricity Rate | 14.78¢/kWh | 13.74¢/kWh |
| Payback Period | 6.8 years | 11.2 years |
| 20-Year Savings | $42,500 | $26,200 |
Verdict
Arizona is the better state for solar ROI with $42,500 in 20-year savings and a 6.8-year payback period. Arizona has more sun exposure at 6.5 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 Arizona or South Dakota?
Arizona gets more sun (6.5 peak hours/day vs 4.6). Arizona has a faster payback (6.8 years) and Arizona offers higher 20-year savings ($42,500).
How do solar costs compare between Arizona and South Dakota?
A 6kW system costs $16,200 in Arizona 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