South Dakota offers moderate solar conditions with good sun hours, though limited incentives and modest electricity rates moderate returns.
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South Dakota provides moderate solar conditions: With 4.5 daily peak sun hours and 12¢/kWh electricity rates, the Mount Rushmore State offers reasonable solar fundamentals. Xcel Energy serves eastern South Dakota with net metering, though limited state incentives moderate returns.
For Sioux Falls and Rapid City residents, solar systems typically take 11-13 years to pay back. Good sun exposure helps offset modest electricity rates, but limited incentives affect overall economics.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| Xcel Energy Net Metering | Full retail rate | Active |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $16,800 | $11,760 | ~$1,030/yr | ~11.4 years |
| 8 kW | $22,400 | $15,680 | ~$1,370/yr | ~11.4 years |