Find out if solar panels are right for your home in South Dakota.
It’s no secret that South Dakota is not currently leading the nation in terms of solar.
As of Q1 2023, North Dakota ranks 50st in the country for solar installations, with 2 MW of solar installed, powering 173 homes. This contribution to the state's electricity is a modest 0.01%.
However, despite this, the state has shown significant development in recent years. there's a projected growth of 624 MW over the next 5 years, indicating a strong potential for solar expansion.
While there are no specific large-scale solar projects or milestones that stand out in North Dakota, the steady growth and increased investment in solar energy reaching $4 million, mark the gradual embrace of renewable energy.
The state's focus has been more on increasing capacity and infrastructure for solar energy rather than specific landmark projects. As solar technology becomes more affordable and efficient, North Dakota's solar landscape is expected to evolve, contributing more significantly to its energy mix.
The average price for a home solar panel system in South Dakota is $15,000 for a 6 kW system or about $2.50 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| South Dakota | $2.50 | |||
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $8,785 | |
| 6 kW | $10,542 | |
| 7 kW | $12,299 | |
| 8 kW | $14,056 | |
| 10 kW | $17,570 |
As a homeowner considering solar energy, it's crucial to weigh the pros and cons specific to your situation.
Factors such as your home's location, energy needs, and financial incentives are all important in determining the viability of installing your own system.
While solar energy offers numerous advantages, it's important to acknowledge potential challenges to make an informed decision.
The decision to get solar can be complex no matter where you live. It’s a big installment to your home and a large investment. While it is a viable decision almost anywhere, the most important takeaway is to help you decide whether it is a good idea for you. It largely depends on individual circumstances and specific energy needs.
On one hand, South Dakota shows promising growth in solar energy. The state has an increasing amount of its electricity potentially coming from solar sources. The state's solar capacity, incentives like the Federal Solar Investment Tax Credit, and policies like net metering make solar an attractive option for many.
However, it's crucial to stress that solar investments are not one-size-fits-all solutions. Each home and business has unique requirements. The effectiveness of solar energy can vary greatly depending on factors like location, roof orientation, and energy consumption patterns.
Budgeting plays a critical role in the decision-making process. While solar energy can offer long-term savings and environmental benefits, the initial investment can be substantial. The average cost of solar installations, potential savings from various incentives, and the expected payback period should be carefully evaluated.
Then, coupling the financial assessment with an energy analysis to ensure that the solar system is not only financially feasible but will also meet the energy demands of the property.
In short, solar energy is a great opportunity for sustainable and cost-effective energy in South Dakota. However, it's imperative for homeowners and businesses to undertake a comprehensive analysis and approach of their energy needs and financial capacity to determine if solar is the right choice for them.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in South Dakota. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
You may find various solar incentives available in South Dakota that can help reduce the overall cost of installing solar panels. Some are offered at the state level, while others are more localized, potentially offered by your city, utility company, or other regional organizations. These incentives can range from a few hundred to several thousand dollars, making solar system installation more affordable.
All of which can be obtained along with the 30% Federal Solar Tax Credit.
The table below provides an overview of incentives in South Dakota, this might not be an exhaustive list. To ensure you're aware of all the financial opportunities available, it's recommended to check with your local utility company or conduct further research into regional solar energy incentive programs.
| Name | State | Category | Type |
|---|---|---|---|
| Renewable Energy Systems Exemption | SD | Financial Incentive | Property Tax Incentive |
| Ethanol Excise Tax Rates | SD | Financial Incentive | Corporate Tax Exemption |
| Small Commercial Wind Energy Property Tax Assessment | SD | Financial Incentive | Property Tax Incentive |
| Ethanol Blender Credit | SD | Financial Incentive | Corporate Tax Exemption |
| Black Hills Energy - Residential Customer Rebate Program | SD | Financial Incentive | Rebate Program |
| Otter Tail Power Company - House Therapy Energy Efficiency Program | SD | Financial Incentive | Grant Program |
| Otter Tail Power Company - Dollar Smart Financing Program | SD | Financial Incentive | Loan Program |
| Otter Tail Power Company - Commercial Energy Efficiency Rebate Program | SD | Financial Incentive | Rebate Program |
| Building Energy Code | SD | Regulatory Policy | Building Energy Code |
| Large Commercial Wind and Solar Alternative Taxes | SD | Financial Incentive | Property Tax Incentive |
There are hundreds of solar companies in South Dakota. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
In Walworth County, South Dakota, the County Commission has set minimum setback distances for solar power plants, a decision influenced by community feedback and concerns about local land use. This action is particularly relevant in light of the ongoing development of the Oahe Solar project near Mobridge, a large solar endeavor capable of powering thousands of households with its 350-megawatt capacity.
The community has expressed a desire for greater transparency and involvement in the decision-making process, as voiced by resident Linda Neiman during a recent commission meeting. The importance of considering local landowners' perspectives was emphasized by Commissioner Justin Jungwirth, who noted widespread support for regulations on the proximity of solar projects to residences.
Commissioner James Hauck detailed the specifics of the proposed setback, explaining that it would be measured as the distance from a house's wall to the nearest solar panel, encompassing a grass buffer area and a fence. The fence, while closer than a mile, will still maintain a significant distance from residential structures.
The commission ultimately approved the proposed regulations with a 4-1 vote, amidst additional concerns about fire safety and the potential impact on wetlands. This decision reflects the county's careful approach to balancing the development of solar energy infrastructure with the interests and concerns of local residents.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in South Dakota decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in South Dakota can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in South Dakota is $15,000 for a 6kW system or about or about $2.50 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Considering batteries alongside your solar system is a smart move. Batteries store excess solar energy, ensuring power availability during outages or when the sun isn't shining. This enhances energy independence and maximizes your solar investment. In areas with variable weather or high electricity rates, batteries can significantly boost savings and provide peace of mind. It's an investment in reliability and efficiency, making your solar system more versatile and effective.
When it comes to solar panels, you'll mainly encounter two types: Monocrystalline and Polycrystalline. Both have their advantages and disadvantages, but either can meet your home's energy needs effectively. In general, Mono-panels are more expensive and more efficient. Poly-panels are slightly less efficient but more affordable. Due to the efficiency difference, you may need a few more poly-panels than mono-panels. There are a handful of other factors as well: roof weight capacity, roof area, roof angle and orientation, and of course your financial limitations.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
