Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Utility rate sheets read September 30 to October 14, 2026. Updated October 14, 2026.
A typical South Dakota system is 7.62 kW and costs about $21,717 in cash at $2.85 per watt. Our two worked cases pay back in 30.0 to 37.5 years, because utilities buy the power you send out for 2.48¢ to 4.871¢, while power costs 14.20¢ to buy.
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South Dakota has no net metering. The Public Utilities Commission (PUC) says lawmakers looked at it in 2013, 2015 and 2016 and did not adopt it. So each kWh your panels make is worth one of two very different amounts. Our cases assume 40% is used at home as it is made.
| Utility and export price | Year-one savings | After upkeep and meter charge | Simple payback |
|---|---|---|---|
| Otter Tail Power, 4.871¢ (Section 12.01, bills from April 1, 2026) | $969 | $724 | 30.0 years |
| Black Hills Energy, 2.48¢ (Schedule 3, since August 1, 2019) | $807 | $579 | 37.5 years |
Swipe the table sideways to see every column.
Neither case earns back the cash price within 25 years. A South Dakota system pays back sooner only when more of its power is used at home as it is made, or when the price is lower.
Six utilities answer to the PUC, and each files its own price for power from small solar systems. Electric co-ops and city utilities set their own terms. The name at the top of your bill tells you which rules apply.
Rate Code E50, since January 1, 2026. Pays for at most 2,000 kWh a month; anything above that earns nothing. Metering charge $3.75 a month.
Next: ask for monthly exports, and check none tops 2,000 kWh.
Schedule 3, unchanged since August 1, 2019. A monthly charge for the extra meter applies, with no amount on the rate sheet. A rate case filed February 19, 2026 was still open on October 1.
Next: get the meter charge in writing before you sign.
Sioux Valley Energy credits 1.61¢ a kWh. Brookings, Pierre, Watertown and nine other cities buy power from Missouri River Energy Services, which filed a 3.45¢ minimum for 2026.
Next: get the price, any charge and the contract term in writing.
| Regulated utility | Pays per kWh | 100 kWh sent out earn | Monthly charge | Price in force since |
|---|---|---|---|---|
| Otter Tail Power | 4.871¢ | $4.87 | $1.33 | April 1, 2026 |
| Montana-Dakota Utilities | 3.416¢ | $3.42 | 7¢ a day | January 1, 2026 |
| Xcel Energy | 3.16¢, up to 2,000 kWh a month | $3.16 | $3.75 | January 1, 2026 |
| NorthWestern Energy | 2.547¢ | $2.55 | $2.00 | April 1, 2025 |
| Black Hills Energy | 2.48¢ | $2.48 | Charged, amount not published | August 1, 2019 |
| MidAmerican Energy | 2.26¢ to 4.61¢, by season and hour | $2.26 to $4.61 | $20.00 | August 15, 2026 |
Swipe the table sideways to see every column.
For comparison, 100 kWh bought from the grid cost about $14.20 at the 14.20¢ state average. None of these prices is fixed for the life of your system: the Xcel, NorthWestern, Otter Tail and Montana-Dakota rate sheets say the price is reviewed each year.
State law asks every utility to file with the PUC its minimum price for power from small renewable systems of 100 kW or less. The PUC does not approve co-op or city prices, and some filings on its list date from 2019.
The September 2026 benchmark sits $0.04 below the US average, tied 23rd lowest of 51. These are modeled cash prices, not quotes we collected.
| System size | Yearly output | Cash price |
|---|---|---|
| 4 kW | 5,912 kWh | $11,400 |
| 6 kW | 8,868 kWh | $17,100 |
| 7.62 kW (typical) | 11,262 kWh | $21,717 |
| 10 kW | 14,780 kWh | $28,500 |
There is no state rebate, no state income tax credit and no federal credit for a system you own. What South Dakota law gives you is a partial property tax exemption on the solar equipment.
Of the system’s assessed value, whichever is greater. No end date for solar (SDCL 10-4-44).
Contact your county Director of Equalization after switch-on.
South Dakota has no state income tax, so there is no credit.
Ended for systems placed in service after December 31, 2025.
The Department of Revenue gives two examples. A system assessed at $30,000 is fully exempt. A system assessed at $85,000 gets an exemption of $59,500, and $25,500 stays taxable. So a large system can still raise your assessment a little. The state’s guidance says nothing about batteries.
Only the utility assigned to your address may sell you electricity, the PUC says. So a company cannot put panels on your roof and sell you their power by the kWh.
Way to pay | Who owns the panels | Allowed here? | Check before you sign |
|---|---|---|---|
Cash | You | Yes | Savings priced at your utility’s filed export price |
Loan | You | Yes | Total financed vs. cash price; over a payback this long, fees weigh heavily |
Lease | The company | Yes, with a condition | It must give you all rights to operate, maintain and control the system |
PPA (power sold by the kWh) | The company | No | Only your utility may sell you power |
Swipe the table sideways to see every column.
Not ranked. One is based in South Dakota; two serve it from North Dakota and Minnesota. None publishes a South Dakota license number. Facts from their own sites and state records, read October 13 and 14, 2026.
None of these three companies buys homeowner leads from EcoGen America. Ask each one for its South Dakota electrical license number before you sign. How we make money.
Ask each installer to price the power you send out at your utility’s filed rate.
Compare South Dakota solar quotesEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. Privacy policy
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
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