SunPowerPeek

South Dakota vs Tennessee Solar Comparison

South Dakota gets more sun (4.6 hrs/day) while South Dakota has the faster payback (11.2 years).Tennessee offers higher 20-year savings at $26,400.

South Dakota

4.6 hrs

11.2yr payback

$26,200

20yr savings

Tennessee

4.3 hrs

11.5yr payback

$26,400

20yr savings

Side-by-Side Comparison

MetricSouth DakotaTennessee
Peak Sun Hours4.6 hrs4.3 hrs
Cost per Watt$3.10$3.00
6kW System Cost$18,600$18,000
Federal Tax Credit30%30%
State Tax CreditNoneNone
State RebateNoneNone
Net MeteringPartial Net MeteringNo Net Metering
Electricity Rate13.74¢/kWh12.91¢/kWh
Payback Period11.2 years11.5 years
20-Year Savings$26,200$26,400

Verdict

Tennessee is the better state for solar ROI with $26,400 in 20-year savings and a 11.5-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 South Dakota or Tennessee?

South Dakota gets more sun (4.6 peak hours/day vs 4.3). South Dakota has a faster payback (11.2 years) and Tennessee offers higher 20-year savings ($26,400).

How do solar costs compare between South Dakota and Tennessee?

A 6kW system costs $18,600 in South Dakota vs $18,000 in Tennessee before incentives. Both qualify for the 30% federal tax credit.

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