Solar by State / South Dakota
Data last verified: August 2026Is Solar Worth It in South Dakota in 2026?
The honest answer depends on four numbers that are unique to South Dakota: your electricity rate, your solar production, your net metering policy, and your state incentives. Here are the real figures, with sources and dates.
South Dakota Solar Snapshot (2026)
| Residential electricity rate | 14.2¢/kWh (EIA, 2026 YTD May) |
| Solar production | ~1310 kWh per kW installed per year (NREL PVWatts v8) |
| Net metering | Full retail 1:1 |
| State tax credit | None in 2026 |
| Rebates / performance | None |
| SREC market | No active SREC market |
| Property tax exemption | No |
| Sales tax exemption | No |
Estimate Your Own Payback in South Dakota
The table above is a 6 kW benchmark. Your home is different — use the Solar ROI Calculator with South Dakota pre-loaded to get your exact payback, or the 30-second worth-it quiz for a go/no-go verdict.
South Dakota FAQ
Does South Dakota have a solar tax credit in 2026?
South Dakota does not offer a state income tax credit for residential solar in 2026. The federal residential credit (Section 25D) expired Dec 31, 2025 and does not apply to 2026 installations.
What is net metering like in South Dakota?
South Dakota uses full retail net metering. This means every exported kWh is credited at your retail rate — the most favorable setup for solar.
Is solar worth it in South Dakota after the federal credit ended?
At a typical 2.80/W installed cost and 14.2¢/kWh electricity, a 6 kW system in South Dakota has an estimated payback of about 14.4 years (rank #28 of 51 states). That is a long payback — solar is hard to justify unless strong state incentives apply to your situation.
Compare South Dakota with Another State
See how South Dakota stacks up against Oklahoma — or use the state comparison tool for a side-by-side of any two or three states.
Popular guides
Is Solar Worth It After the 2026 Tax Credit?
What changed when the federal 25D credit expired.
Read →Solar Panel Cost by State (2026)
How much solar costs in every state this year.
Read →Net Metering vs Net Billing
Why your export credit matters as much as your rate.
Read →