South Dakota · Net metering
SD Net Metering
Sets the billing terms for excess solar generation sent back to the grid by residential customers in South Dakota -- see the credit rate and how it shapes payback below.
- Retail rate credit
- stated benefit
- Residential
- eligible customers
- 17.1 yr
- South Dakota baseline payback
- 1
- other South Dakota programs
What it means
In South Dakota, a 6 kW system already pays back in about 17.1 years on ~$964/year of modeled savings, and the SD Net Metering stacks on top of that, on top of any federal credit.
- Retail rate cr…
- stated benefit
- 17.1 yr
- baseline payback (pre-incentive)
- 2
- South Dakota programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
South Dakota utilities offer net metering for residential solar systems.
Program at a glance
- Program type
- Net metering
- Eligible customers
- Residential
- Stated benefit
- Retail rate credit
- State electricity rate
- 11¢/kWh
- South Dakota solar score
- 23/100
How South Dakota compares to the U.S. average
Why this incentive matters more (or less) here - South Dakota's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in South Dakota
The market this incentive operates in: total installed solar capacity in South Dakota reported to the EIA.
How this incentive fits South Dakota's solar picture
The SD Net Metering governs how South Dakota credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Retail rate credit. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. South Dakota averages 5 kWh/m²/day of usable sunlight and residential rates of 11¢/kWh, producing an estimated 8,760 kWh/year and $964 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 17.1-year simple payback and a 25-year modeled net of roughly $7,600 before this incentive - every dollar this net metering delivers compresses that payback further.
Few other programs are tracked here, so this incentive carries most of the weight for South Dakota solar buyers. South Dakota has 2 solar incentive programs indexed in DSIRE. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See South Dakota's full solar profile, score, irradiance, rates, payback, and every program you can claim. South Dakota solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- See how net-metering credits are valued state by state. Net-metering guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Frequently asked questions
What is the SD Net Metering?
How does the SD Net Metering work?
Who is eligible for the SD Net Metering?
How does this incentive affect solar ROI in South Dakota?
Are there other solar incentives in South Dakota?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.