Solar Panel Savings in South Dakota

South Dakota gets 4.7 peak sun hours per day with electricity at 13¢/kWh. See how much you can save with solar panels.

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Avg Sun Hours/Day
4.7
Electricity Rate
13¢/kWh
Solar Cost
$2.85/W
State Incentive
0%

Solar Panel Cost & Savings by System Size in South Dakota

System SizeGross CostAfter CreditsPayback25-Year SavingsAnnual kWh
6 kW$17,100$11,9708.1 yrs$36,15610,293
8 kW$22,800$15,96010.5 yrs$32,16613,724
10 kW$28,500$19,95012.7 yrs$28,17617,155
12 kW$34,200$23,94014.7 yrs$24,18620,586

Includes 30% federal ITC + 0% South Dakota state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.

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South Dakota Solar Incentives

Federal ITC (2026)30% of system cost
South Dakota State Credit0%
Combined savings (8kW)$6,840
Net system cost (8kW)$15,960

South Dakota Energy Profile

Avg Electricity Rate13¢/kWh
Avg Gas Price$3.25/gal
Avg Annual Electric Bill$1,320
Peak Sun Hours/Day4.7 hrs

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Is Solar Worth It in South Dakota?

South Dakota averages 4.7 peak sun hours per day, which means an 8 kW solar system would produce approximately 13,724 kWh per year. At the state's average electricity rate of 13¢/kWh, that translates to significant annual savings on your electric bill.

With the federal 30% Investment Tax Credit and South Dakota's 0% state incentive, an 8 kW system costing $22,800 drops to just $15,960 after credits — with a payback period of approximately 10.5 years.

Over 25 years, homeowners in South Dakota can expect to save $32,166 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of solid sun exposure and federal incentives makes solar a solid investment in South Dakota.