Estimated Savings for a Typical South Dakota Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$17,000
State Rebate
None
Net Cost
$17,000
Current Heating Cost/yr
$3,032
Heat Pump Cost/yr
$1,378
Annual Savings
$1,654
Payback Period
10.3 yrs
15-Year Savings
$14,681
CO₂ Avoided/yr
12,552 lbs
South Dakota Heat Pump Rebates
✕
Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by South Dakota. View full rebate detail →
Heat Pump Costs by City in South Dakota
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Sioux Falls | $1,521 | 11.2 | 192,517 | Xcel Energy SD |
| Rapid City | $2,065 | 8.2 | 74,703 | Black Hills Energy |
| Aberdeen | $1,702 | 10 | 28,508 | Otter Tail Power |
| Brookings | $1,959 | 8.7 | 23,939 | Xcel Energy SD |
| Watertown | $1,812 | 9.4 | 22,655 | Otter Tail Power |
| Mitchell | $1,839 | 9.2 | 15,660 | Northwestern Energy SD |
| Yankton | $1,597 | 10.6 | 14,454 | Northwestern Energy SD |
| Pierre | $1,928 | 8.8 | 13,646 | Northwestern Energy SD |
| Huron | $1,911 | 8.9 | 13,360 | Northwestern Energy SD |
| Spearfish | $1,764 | 9.6 | 12,193 | Black Hills Energy |
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Quick Facts: South Dakota
- 🌡️ Climate: Very Cold (7,700 HDD)
- ⚡ Avg electricity: $0.112/kWh
- 🔥 Natural gas: $1.00/therm
- 🏭 Top utility: Otter Tail Power