State solar profile · #42 of 51
Solar in South Dakota: cost, payback & incentives
What a typical home should expect from solar in South Dakota - sunshine, electricity rates, modeled payback, and the 1 incentive programs that change the math, built from NREL, EIA, and DSIRE data.
- 5
- kWh/m²/day irradiance
- 11¢
- avg electricity rate
- 17.1 yr
- payback (#44)
- 1
- incentive programs
The verdict
South Dakota scores 23/100 for solar - #42 of 51 - with a modeled 17.1-year payback and roughly $7,600 net over 25 years on a typical 6 kW system before any incentives.
- 23/100
- solar score (#42)
- 17.1 yr
- modeled payback (#44)
- $964
- modeled annual savings
- full
- net-metering policy
All figures are modeled from public NREL/EIA/DSIRE data for a typical 6 kW system; your result depends on roof, shading, utility tariff, and installer pricing.
South Dakota at a glance
5
irradiance (kWh/m²/day)
11¢
electricity rate (per kWh)
$16,500
6 kW system cost
17.1 yr
est. payback (#44)
8,760
kWh/year (6 kW)
$964
annual savings
25-year ROI for a 6 kW system
$16,500
system cost
$964/yr
modeled savings
17.1 yr
break-even
+$7,600
25-year net
Estimates from state averages; actual results vary by system size, roof orientation, shading, utility rate, and installer pricing. Run a personalized estimate →
Installed solar capacity in South Dakota, 2016–2024
Total solar nameplate capacity in South Dakota reported to the EIA, utility-scale and reported distributed systems.
Where South Dakota sits nationally
Every state by sunshine (left-to-right) and payback speed (faster toward the bottom). South Dakota is highlighted, its position shows whether sun or electricity rates drive its return.
South Dakota (highlighted): 5 kWh/m²/day, 17.1-yr modeled payback - slower than the national average.
What the data says about solar in South Dakota
South Dakota ranks #42 of 51 with a composite solar score of 23/100 (Marginal). The score blends inputs from NREL and EIA: average irradiance of 5 kWh/m²/day, residential electricity at 11¢/kWh, a turnkey 6 kW installed cost of $16,500 ($2.75/W), and 1 tracked state and utility incentive programs.
On those inputs, a 6 kW array here is modeled to generate roughly 8,760 kWh/year and offset about $964 in annual utility spending at the state's average rate, an estimated 17.1-year simple payback (#44 of 51 for speed to break-even) and a projected +$7,600 net position over a 25-year horizon before utility-rate escalation.
Policy matters as much as physics. South Dakota's net-metering framework is classified as full, which governs how exported generation is credited, and its renewable portfolio standard is: Voluntary (10% by 2015). The 1 active program tracked in DSIRE includes net metering type, each can stack to compress payback. Note that the 30% federal residential solar tax credit (§25D) ended for systems placed in service after December 31, 2025, so state and utility incentives now carry more of the economics, confirm current federal rules with the IRS and your tax advisor.
Solar & grid details
- Net-metering policy
- full
- Renewable portfolio standard
- Voluntary (10% by 2015)
- Installed cost / watt
- $2.75/W
- Annual production (6 kW)
- 8,760 kWh
- Installed capacity (EIA 2024)
- 209 MW
Top incentive programs
1 programs available for South Dakota residents
All South Dakota solar incentives (1)
Your next step
How to act on South Dakota's numbers.
- Run the savings calculator with your real electricity bill, the figures above use state averages, not your usage. Calculate for South Dakota
- Check net-metering and SREC value before signing, in a "full" state, export compensation often decides the return. Net-metering guide
- Stack South Dakota's 1 incentive programs, each lowers net cost or raises annual return. See all programs
Modeled estimates from public data, not financial advice; a binding figure requires a site-specific assessment from a licensed installer.
Solar resource from NREL; electricity rates and installed capacity from the U.S. EIA; incentive programs from DSIRE. See our methodology.