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South Dakota Solar Incentives (2026)

South Dakota homeowners qualify for the 30% federal solar tax credit. Net metering policy: Partial Net Metering. Average payback period: 11.2 years.

30%

Federal ITC

None

State Tax Credit

None

State Rebate

Partial Net Metering

Net Metering

Federal Solar Incentives (Available in South Dakota)

Federal Solar Investment Tax Credit (ITC)

Tax Credit

30% of system cost

The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.

Expires: 2034-12-31

South Dakota does not currently have additional state-specific solar incentives beyond the federal 30% ITC. However, the partial net meteringpolicy still allows homeowners to earn credits for excess solar generation.

South Dakota Solar Overview

Peak Sun Hours

4.6 hrs/day

Avg Payback Period

11.2 years

20-Year Savings

$26,200

Electricity Rate

13.74¢/kWh

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