South Dakota · Net metering · Thin-stack program
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
Thin-stack program · late directory
South Dakota tracks only 2 DSIRE solar programs; this net metering carries most of the registry weight against a 17.1-year modeled baseline.
- Stack2 programs
- In-state #1/1
- Type #38/46
- Baseline17.1 yr
In-state directory place #1 of 1 (late alphabet). National net metering directory #38 of 46. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
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
Solar's trajectory in South Dakota
The market this incentive operates in: total installed solar capacity in South Dakota reported to the EIA.
Why this net metering dominates South Dakota's thin stack
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.
Frequently asked questions
What does the SD Net Metering cover in a thin South Dakota stack?
How does the SD Net Metering work?
Who qualifies, and what does a late in-state directory place mean?
Does this single-track net metering move South Dakota solar ROI?
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 · South Dakota solar data · ROI calculator · All incentives.