South Dakota Solar Guide 2026
Everything South Dakota homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about South Dakota solar
South Dakota has no state income tax, which means the state income tax credit angle doesn't apply. Limited installer competition means getting multiple quotes is especially valuable here.
Peak sun hours
5
hrs/day avg
Avg electricity rate
11.0¢
per kWh
Median install cost
$2.95/W
before incentives
Typical payback
14 yrs
8 kW system, avg usage
Typical 8 kW system in South Dakota
Annual production
14,600 kWh
Year-1 savings
$1,606
System cost (est.)
$23,600
No federal tax credit — Section 25D expired December 31, 2025.
South Dakota Net Metering Policy
Full retail net metering (SDPUC rules)
South Dakota requires full retail net metering for IOUs. MDU and Black Hills Energy must credit exports at retail rate. Monthly rollover with annual settlement.
South Dakota Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Property tax exemption on residential solar
- ✓No state income tax (no credit needed)
Top Utilities in South Dakota
Interconnection timeline: 4–8 weeks
Calculate your South Dakota solar economics
Our calculators are pre-filled with South Dakota data. Run any tool below.