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South Dakota solar and rebates

South Dakota Net Metering and Utility Rebates by Utility

Net metering and utility efficiency rebates in South Dakota, from federal data: how many homes use net metering, what utilities paid out and where to find current offers.

Reviewed Net metering and efficiency data: EIA Form EIA-861, 2025. Federal rules checked October 10, 2026

Net metering customers

622

1.4 per 1,000 homes

Capacity

4.9 MW

7.9 kW per customer

Efficiency incentives per home

$1.31

47th of 50

Average price

13.32 cents

23% below the US average

Net metering in South Dakota

Utilities in South Dakota reported 622 residential customers on net metering in 2025, with 4.9 megawatts of capacity, which averages 7.9 kilowatts per customer. That is 1.4 customers per 1,000 homes. Among the 51 places that reported, South Dakota ranks 48th, and the national ranking is on the net metering by state page.

South Dakota utilities with the most residential net metering customers, 2025
UtilityNet metering customersMegawatts
Black Hills Power2261.5
West River Electric Association2061.4
Black Hills Electric Cooperative860.7
Sioux Valley Southwestern Electric Cooperative661.2
Southeastern Electric Cooperative140.1

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), net metering schedule, residential. The count covers net metering only. Solar homes on other export arrangements are tracked separately by EIA.

What an exported kWh is worth in South Dakota

The value of a solar export depends on the credit your utility pays. As an illustration, take 7,000 kWh of solar power in a year, a made-up figure and not a forecast for any home. At the 2025 South Dakota average price of 13.32 cents per kWh, that power is worth $933 if the utility credits it at the full retail price. If the utility credits exports at half that rate, it is worth $466.

The gap shows why the export credit matters so much. Ask the utility which applies to you, and use the solar savings calculator to set the retail and export prices separately.

Utility efficiency rebates in South Dakota

In 2025, 9 South Dakota utilities reported efficiency programs to EIA. Together they paid about $583,200 in incentives to residential customers, or $1.31 per home, which ranks 47th of 50. The programs reported 3,673 megawatt hours of first year residential savings, about 6.3 kWh for each dollar of incentive.

South Dakota utilities paying the most residential efficiency incentives, 2025
UtilityPaid to residential customers
Sioux Valley Southwestern Electric Cooperative$263 thousand
Xcel Energy Minnesota$123 thousand
Otter Tail Power$104 thousand
Black Hills Power$58 thousand

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), energy efficiency schedule. Paid incentives show what a utility spent, not what you can get. See efficiency rebates by state for the national ranking.

What the federal credits mean in South Dakota

The IRS says the residential clean energy credit, which covered solar panels, does not apply to expenditures made after December 31, 2025, and the home improvement credit does not apply to property placed in service after that date. That is true in every state. What remains are state and utility offers, and the federal home energy rebates that states run. See solar incentives and home energy rebates.

Source: IRS FS-2025-05, read October 10, 2026. This is not tax advice.

Where to look for current South Dakota offers

  1. Search the DSIRE database for South Dakota incentives and net metering rules.
  2. Enter your ZIP code in the ENERGY STAR rebate finder.
  3. Ask your electric company about its net metering, export credit and rebate programs. Find it in the South Dakota utility list.
  4. Read the rules at the South Dakota Public Utilities Commission, which oversees investor-owned utilities.

South Dakota solar and rebate questions

Does South Dakota have net metering?

South Dakota utilities reported 622 residential net metering customers and 4.9 megawatts in 2025. The credit for exports depends on the utility and the state rules, so ask yours.

Is there a federal solar tax credit in South Dakota?

The IRS says the residential clean energy credit does not apply to expenditures made after December 31, 2025, so it does not apply in any state for new installs.

How much do South Dakota utilities pay in efficiency rebates?

In 2025, South Dakota utilities that reported to EIA paid about $583,200 in efficiency incentives to residential customers, about $1.31 per home.

Where do I find South Dakota solar and rebate offers?

Search the DSIRE database and the ENERGY STAR rebate finder, then ask your electric company and your state energy office before you sign anything.

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