Home › South Dakota › Incentives
South Dakota Solar Incentives & Tax Credits
Every solar incentive available to South Dakota homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $25,893 system, that's a $7,768 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
No State Credit
South Dakota State Incentive
South Dakota has no state income tax, making federal credits more valuable.
While South Dakota does not offer a statewide solar tax credit, many utilities offer their own rebate programs. Check with your local utility for current offers.
Net Metering in South Dakota
South Dakota has Full Retail net metering. Your top utility, Otter Tail Power, credits you for excess solar power fed to the grid.
Policy Type
Full Retail
Electricity Rate
$0.112/kWh
Top Utility
Otter Tail Power
Utility Net Metering Policies in South Dakota
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Black Hills Energy | $0.112 | Full Retail | No overall limit |
| Otter Tail Power | $0.112 | Full Retail | No overall limit |
| Xcel Energy SD | $0.112 | Full Retail | No overall limit |
Solar Savings Calculator
Instant estimate — no email required
$
Ready to Go Solar in South Dakota?
Get free quotes from licensed installers in your area. Compare prices and choose the best deal.
Get Free Quotes in South Dakota →