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Key Points
South Dakota’s solar industry has a lot of room for growth, ranking 50th in the country for solar installations.
You can take advantage of solar incentives to help fund your South Dakota solar panels, including the 30% federal tax credit.
SaveOnEnergy can help you find a reputable South Dakota solar company to start discussing your solar options.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
Solar power in South Dakota
South Dakota’s solar industry has been slow to get going in the state. It currently ranks 50th among all states for solar power installations, according to the Solar Energy Industries Association (SEIA). However, with over 300 megawatts (MW) of capacity planned for installation over the next five years, solar is set to enjoy rapid growth in South Dakota. The price for panels has dropped by 54% in the past decade, making the choice of going solar increasingly affordable for homeowners in the Mount Rushmore State.
If you’d like to invest in solar panels, SaveOnEnergy is here to help. Our resources can help you learn about the average cost of solar panels in South Dakota, available solar incentives, and how to choose a trusted solar company.
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South Dakota solar panel cost
Solar panels can be a great investment for South Dakota homeowners. The price of solar panels is measured by watt. The average cost of solar panels in the U.S. is about $3.67 per watt, according to the Lawrence Berkeley National Laboratory.
However, be sure to consider certain factors that can increase your total cost of solar panel installation, such as your location, your roof’s condition, and your energy consumption. Larger systems and higher-quality equipment can also raise the total price, but keep in mind that only about 30% of the total cost comes from the materials. Permitting, wiring, inspections, and labor can drive up the remaining installation costs.
System size (kW)
Total system cost
Number of solar panels*
6 kW
$22,020
15–20
8 kW
$29,360
20–27
10 W
$36,700
25–33
12 kW
$44,040
30–40
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
How does South Dakota solar save you money?
Purchasing solar panels can lead to long-term savings because you rely less on electricity from the grid. The length of time it takes your solar panel system to pay for itself through the savings you make on your electricity bill is called the payback period. Based on South Dakota’s average monthly electricity bill of $132.37, the payback period for a typical U.S. solar system would be just under 14 years.
South Dakota solar panel incentives or rebates
You can apply for federal tax credits and state incentives to help offset the total cost of installing a residential solar system. To encourage the expansion of the renewable energy industry, the federal government created the Residential Clean Energy Credit, which allows anyone who purchases residential solar power through 2032 to receive a 30% credit on their federal taxes.
Program
Description
Net metering
South Dakota doesn’t have a net metering requirement, but some providers may offer their own programs.
South Dakota’s property tax exemption offers up to $50,000 or 70% of the solar system’s cost, whichever is greater.
Solar rebates
There are no statewide rebates on offer, but your chosen solar installer may offer its own deals.
Why choose South Dakota solar power?
In addition to financial savings, there are several key benefits you can look forward to if you go solar: South Dakota energy savings, increased energy independence, and environmental benefits.
Lower energy costs
South Dakota residential solar systems can help lower your monthly utility costs. Even though there is an initial investment, many solar owners experience an average payback period of six to nine years. In other words, your solar panels can eventually pay for themselves. After the payback period, you will still enjoy monthly savings on your bill. Of course, the amount you can save will depend on the size of your solar system and your average energy consumption.
Increase energy independence
For some homeowners, establishing energy independence is a huge benefit. Having your own solar panels reduces your reliance on the power grid, which can help you avoid price spikes. If you add a solar battery to your system, you can also avoid power outages when they occur and use stored energy when the sun goes down.
Go green
Investing in renewable energy has a positive impact on the environment.Solar energy is renewable and a great source of green energy because it doesn’t emit any carbon dioxide when generating power. Lowering carbon emissions can help reduce the effects of climate change.
Should I buy or lease my solar panels in South Dakota?
South Dakota homeowners who want solar energy have several ways to access it, including buying and leasing. If you can afford the initial cost of installation,buying upfront yields the best return on your investment. This is because the cost of installation can be recovered in savings from monthly utility bills. Buying with cash or a loan can also qualify you for federal tax credits and state incentives. Homeowners who install a solar system will see their home’s resale value increase by up to $15,000.
Leasing is a good option for South Dakota homeowners who cannot afford the initial investment of installation. In a solar lease, the solar company owns the solar panels and charges the homeowner or renter a set monthly fee regardless of energy generation. Since you are still self-generating power, your energy bills are usually still smaller.
The following table highlights some of the pros and cons of various solar options.
Payment method
Benefits
Drawbacks
Cash purchase
Largest amount of savings over time, solar system ownership, eligible for incentives, electricity bill savings
No upfront costs, power home with clean energy, electricity bill savings
No ownership
South Dakota solar panel companies
South Dakota has a relatively small solar industry, but you still have several solar companies to choose from to install your system. SaveOnEnergy is a marketplace that cooperates with trusted installers to provide reliable solar resources.
There are several key qualities to look for in a reliable solar contractor. You should expect the best providers to have solid warranties for their products and certified staff members. In addition, you can look for customer reviews to see what the company’s record is. Some solar companies also offer financing options to make the upfront purchase more affordable for you.
SaveOnEnergy’s independent energy market can help you choose the best solar panel company for your needs and budget. Simply fill outour solar estimator or call the number on your screen to connect with an energy expert and find solar installers near you. You can also spend some time researching the solar industry before making any decision.
Beware of free solar panels in South Dakota scam
There is no such thing as free solar panels in South Dakota. You may see some companies trying to pressure you into a loan deal by using this language. Others may try to get you to sign a misleading contract by promising you free solar panels. The best way to avoid these scams is to thoroughly research the solar industry in South Dakota. Once you know the market rates for panels, you can more easily judge if an offer is legitimate.
Important solar installation factors to consider
It is important to remember that not every single home has the capacity to adequately supply solar energy. There are many factors in South Dakota that can impact the effectiveness of solar panels, such as:
Your roof: The size, condition, shape, age, and even slope of your roof can impact the effectiveness of installed solar panels. South-facing roofs that slope between 15 and 40 degrees are best positioned for solar energy generation.
Your access to sunlight: Even though solar technology can operate in any climate, you still need sufficient sunlight. Ensure your roof is not obstructed by trees or other buildings before adding solar panels to your home.
Your neighborhood: Some HOAs may limit the changes you can make to the exterior of your home. Before signing any contracts, be sure to check for any neighborhood regulations. Your solar installer can help you navigate this.
Solar power FAQs
The cost of your solar panel installation depends on various factors, including your home’s energy usage, permitting costs, and the type of system you’d like. For example, adding a battery to your solar system can increase the cost by thousands of dollars. The average U.S. solar system costs $31,558 before factoring in tax credits and incentives.
Buying solar panels in South Dakota can result in big savings, especially if you take advantage of the 30% federal tax credit. Over time, you’ll save money on your electricity bills because your panels will generate the energy you need. Once your payback period has been reached, you can make significant savings for the lifespan of your solar panels. A typical payback period in South Dakota is 14 years.
Several solar companies operate in South Dakota. You can find a good one by thoroughly researching your options. Our resources can inform you about all the key aspects of the solar industry. If you want to speak with a solar expert, call the number on your screen.
When solar panels generate energy, they don’t emit any carbon dioxide. Going solar helps mitigate the effects of climate change, which is made worse by fossil fuels. Solar is also a renewable energy source, since the panels can produce power whenever the sun shines.