SOUTH DAKOTA
Solar in South Dakota
Sunshine is far from lacking in South Dakota since the state receives a bountiful average of 213 sun-filled days each year.* Sunny South Dakota exceeds the national average, which is one reason why 81% of the buildings in South Dakota have solar viability.*
Although South Dakota currently doesn’t generate as much solar energy as many other states, the region’s clean energy generation is on the upswing, and the outlook is promising.
Solar potential in South Dakota
South Dakota has a great potential for solar energy. The state receives an average of 5.1 hours of sunlight per day, which is above the national average of 3.8 hours of sunlight per day. This means that South Dakota has a good potential for solar energy generation.
Despite the abundance of sunshine and the state’s high potential, South Dakota isn’t yet a leading solar power producer. In 2020, solar power accounted for only 0.01% of South Dakota’s total power generation, although the state has great solar potential.*
However, the tide is turning for South Dakota. The Public Utilities Commission (PUC) recently issued permits for the construction of two large-scale clean energy facilities, which will generate a total of 238 MW of electrical energy from solar power:
The Lookout Solar Project, Oglala Lakota County (110 MW)
Wild Springs Solar Project, Pennington County (128 MW)
Cost of Solar in South Dakota?
The cost of a home solar system can vary, even in the same state, due to a range of factors. These include the:
Condition and angle of the roof
Quality of the solar panels
Weather
Home’s energy needs
In South Dakota, we found that the average investment to own a 5 kW solar system is $12,500, or in other words, $2.50 per watt—and that’s before considering the benefits of any available tax credits or incentives.
South Dakota offers a financial incentive for residents who want to go solar. Unfortunately, the state doesn’t have local tax credits or rebates. Instead, a 5 kW solar system can raise property value by $14,500, but the system will be exempt from their local property tax.* The state even sweetens this property tax exemption by extending the exemption to cover the first $50,000 (or 70%, whichever is greater) of the assessed value of the property you use for producing solar power for the first four years.
Residents can also take advantage of the Federal Investment Tax Credit (ITC). The ITC provides new solar system owners with a 26% tax credit for solar installed during the 2020 – 2022 period.*
Advantages?
Reduced electricity bills: Solar panels can generate electricity for your home, which can help you reduce your electricity bills. The amount of savings you can expect will vary depending on the size of your solar system, the amount of sunlight your home receives, and your current electricity rates.
Increased home value: Solar panels can increase the value of your home. A study by the National Bureau of Economic Research found that homes with solar panels sell for an average of $15,000 more than homes without solar panels.
Environmental benefits: Solar panels are a clean and renewable source of energy. They do not produce any emissions, which can help to reduce air pollution and greenhouse gas emissions. Solar panels can also help to make South Dakota a more sustainable state.
State incentives: South Dakota offers a number of incentives for homeowners who install solar panels. These incentives can include tax credits, rebates, and grants.
Disadvantages?
Shade: Solar panels need direct sunlight to generate electricity. If your home is in a shady area, or things are covering your panels you may not be able to generate as much electricity with solar panels.
Weather: Some Solar panels can be damaged by hail, snow, and strong winds. However, our solar panels are designed to withstand these conditions and even extreme weather conditions like hurricanes, tornado, and blizzards.
Panels aesthetic: Our solar panels are different. They are all black, sleek, and thin. They have a more modern look. Some people find solar panels on homes unattractive and if your feel like that we also offer Ground mount installations. It’s a great option if you have open land that receives good sunlight.
South Dakota state policies?
Net metering: Net metering allows customers to sell excess solar power back to their utility company at the retail rate. This means that for every kilowatt-hour (kWh) of solar power that you generate and send back to the grid, you will receive a credit on your electricity bill.
Property tax exemptions: The state exempts homeowners from paying property taxes on the increased value of their home that is due to solar panels. This means that if you install solar panels and your home value increases by $10,000, you will not have to pay property taxes on that $10,000.
Solar Renewable Energy Credits (SRECs): The state offers Solar Renewable Energy Credits (SRECs) to homeowners who generate solar power. SRECs are tradable certificates that represent 1 megawatt-hour (MWh) of solar generation. Utilities are required to purchase SRECs from solar generators in order to meet their renewable energy goals. The price of SRECs varies depending on the market, but they can provide an additional source of income for homeowners who generate solar power.
The PUC also has a number of policies in place to support solar energy development on utility-scale projects. These policies include:
Standard interconnection procedures: The PUC has established standard interconnection procedures for solar developers. These procedures make it easier for solar developers to connect their projects to the grid.
Rates for solar generation: The PUC sets rates for solar generation. These rates are designed to ensure that solar developers are able to recover their costs and make a profit.
Financing options: The PUC works with financial institutions to develop financing options for solar developers. These options make it easier for solar developers to finance their projects.
Maintaining solar panels?
Solar panels are relatively low-maintenance. However, you should have them cleaned every few years to remove dirt, dust, and debris. You can clean your solar panels yourself, or you can hire a professional to do it for you.
What's the best way to go solar?
Are you interested in going solar in South Dakota? If so, we can help!
Before going solar, be sure to keep in mind factors that will affect the output of clean energy to your home. For instance, South-facing roofs generate the most energy, followed by west-facing roofs. North-facing roofs generate the least amount of energy. We look into multiple aspects to make sure you have the most effective setup such as roof orientation, roof pitch, shade, and weather.
We offer a free virtual consultation and savings report to help you determine if solar is right for you. We will also help you access solar incentives and rebates to reduce the cost of installation.
Freedom Forever solar panels system is Top-Tier and backed by a 25-year full system production guarantee. We also offer a satisfaction guarantee, so you can be sure that you are making the right decision and test it out stress free.
If you are interested in learning more about solar power in South Dakota, please contact us today for a free virtual consultation.
We look forward to helping you make the switch to solar!