Solar by state › South Dakota

Home solar in South Dakota

South Dakota has no net metering law and no state solar rebates or tax credits; the main state help is a property tax break on most of the value solar adds.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

15.2¢average home price per kWh (EIA, August 2026)

Harder case for solarEach utility sets its own pay for exported power, often a low avoided-cost rate, and there are no state incentives besides the property tax exemption. Solar mainly pays by covering your own use.

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Net metering No statewide net metering

South Dakota does not require net metering. Each utility (Xcel Energy, Black Hills Energy, NorthWestern Energy, Otter Tail, and co-ops) sets its own terms; exported power is usually bought at the utility's avoided-cost rate, well below retail. Ask your utility for its current small-generator tariff before you buy. Source

Solar credits (SRECs) No market

South Dakota has no SREC market for homes. Source

Rebates and incentives

We found no statewide solar rebate or tax credit open in South Dakota right now. Your utility, city or county may still offer one, so ask your installer.

Taxes

Property tax: Partial (often full for homes): the first $50,000 of assessed value or 70% of it, whichever is greater, of a renewable energy facility under 5 MW is exempt from real property tax (SDCL 10-4-44). Ask your county Director of Equalization.
Sales tax: None found: no sales tax exemption for home solar equipment. Source

Solar laws

Renewable energy property tax exemption, SDCL 10-4-44 (2010). Exempts the greater of the first $50,000 or 70% of the assessed value of renewable energy property under 5 MW from real property tax. Source

Community solar

No: South Dakota has no community solar law or statewide program.

Timeline

2010 Renewable energy property tax exemption (SDCL 10-4-44) enacted
2013 Net metering bill (HB 1207) fails (unverified)
2016 Bill moving toward net metering dies in committee
2025-12-31 Federal 30% homeowner tax credit (25D) ends

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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