South DakotaSolar Panel Costs & Savings
South Dakota averages 4.6 hrs of peak sun per day with an average payback period of 11.2 years. Homeowners can save $26,200 over 20 years.
Peak Sun Hours
4.6 hrs
per day
6kW System Cost
$18,600
before incentives
Payback Period
11.2 yrs
average
20-Year Savings
$26,200
estimated
Solar Cost Breakdown in South Dakota
| Item | Amount |
|---|---|
| 6kW System Cost ($3.1/W) | $18,600 |
| Federal Tax Credit (30%) | -$5,580 |
| Net Cost | $13,020 |
Net Metering
Partial Net Metering
Electricity Rate
13.74¢/kWh
Avg Monthly Bill
$133/mo
Solar Incentives in South Dakota
Federal Solar Investment Tax Credit (ITC)
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.
Solar Potential by ZIP Code in South Dakota
Compare With Other States
More Data for South Dakota
Frequently Asked Questions
How much do solar panels cost in South Dakota?
A typical 6kW solar system in South Dakota costs approximately $18,600 before incentives. After the 30% federal tax credit ($5,580), the net cost is approximately $13,020.
How long does solar take to pay for itself in South Dakota?
The average solar payback period in South Dakota is 11.2 years, slower than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does South Dakota have net metering?
South Dakota has partial net metering. Some utilities offer net metering programs with varying credit rates.
How much sun does South Dakota get for solar?
South Dakota averages 4.6 peak sun hours per day, which is 0.1 hours above the national average. A 6kW system produces approximately 10,074 kWh per year.
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Data verified March 2026 · Source: NREL, DSIRE, EIA