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2 Best Solar Companies in South Dakota

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Written By Todays Homeowner Local Pros

Last Updated February 2024

South Dakota has historically had low solar adoption rates, since the state government has mostly used hydroelectric power for its renewable energy goals. However, an increasing number of homeowners in the Land of Infinite Variety are deciding they want a closer energy source to them, and solar is their ticket to energy independence and substantial savings.

The team at Today's Homeowner ranks these South Dakota solar energy companies the best in the state.

Top 2 Best Solar Companies in South Dakota

Black Hills Solar, Inc.

Black Hills Solar, Inc. Logo

Our Rating

User Rating

1950 Samco Rd Suite 7, Rapid City, SD 57702 (605) 702-2510 blackhillssolar.com

Clear pricing policy

Free quotes

Reliable customer support

Informative resources

Services Offered

Residential panels
Battery storage
Off-grid solar systems
Ev charger
Commercial panels

GenPro Energy Solutions

GenPro Energy Solutions Logo

Our Rating

User Rating

13261 Timberline Plaza, Piedmont, SD 57769 (605) 341-9920 genproenergy.com

Reliable customer support

Free quotes

Clear pricing policy

Services Offered

Commercial panels
Residential panels
Today's Homeowner Ranking Methodology

Today's Homeowner looks at dozens of datapoints on solar companies to come up with our data-driven rankings. It's not possible for a company to pay for preferential treatment in our rankings. We look at the following key factors in determining who should top our list:

  • Company Experience
  • Real User Reviews
  • Company Reputation
  • Accreditations and Licenses
  • Service Area
  • Customer Service
Have questions about our methodology or company ratings? Reach out to FindAPro@TodaysHomeowner.com.

If you're searching for a solar installer in South Dakota, we have the only list you'll ever need. Our team of home improvement experts found these 2 companies to have the highest experience, the best local reputation, and the highest satisfaction rates. Our mission at Today's Homeowner is to empower you with the advice and techniques you need to maintain the health and safety of your home. For jobs beyond the "DIY" scope, our contractor recommendations come from our combined years of home improvement experience. Click here for more information on how we rate local companies.

Annual Solar Facts For South Dakota

Average Max Temp:

56°F

Average Min Temp:

38°F

Average Daily Sunlight:

53%

Average CO2 Savings Per 5kW System:

95lbs CO2e/yr

Average Monthly Precipitation:

1.89"

Average Solar Savings Per 5kW System:

$920/yr

The Main Types of Residential Solar Systems

With three types of solar panels in today's market, small-scale renewable energy has become easier to adopt than ever before. Your contractor will likely have experience with all three kinds and can help you pick the best one for your property.

Monocrystalline

In the very hot summers of South Dakota, you'll get the best results from monocrystalline panels. Each black-hued cell uses only one silicon crystal, meaning you can generate more energy with a small array. Since they're more intricate, they come at a higher starting price point. However, they also have the highest lifespan and better ROI possibilities than the other options.

Polycrystalline

You can recognize polycrystalline panels by their navy blue shade. Each cell in these panels utilizes multiple silicon fragments molded together, which translates to less manufacturing waste and a lower starting price point.

However, they take up more space than monocrystalline panels, so you'll need more free roof space for a high-capacity array.

Thin-film

Thin-film solar panels use various metal alloys instead of silicon crystals. Some homeowners choose them for their reduced weight or greater compatibility with unique roof shapes. Others pick them for their superior heat resistance and low-light performance. Thin-film panels are a good choice for value in more "partly sunny" areas of South Dakota. They maintain efficiency as temperatures fluctuate and work with many different roof shapes.

Although some thin-film panel models are about as efficient as polycrystalline panels, other models are far less efficient or have very short lifespans.

Solar Purchase Options

While certain terms may depend on your contractor and model, you might be able to make use of these financing tools to keep solar energy as affordable as possible:

  • Solar leases: With a solar lease, you'll pay a monthly amount based on the energy the panels are predicted to generate. Your lease provider can offer benefits such as no money down, covered regular maintenance, and a guarantee which provides for refunds if your panels aren't reach their predicted target efficiency. However, they aren't eligible for state or tax incentives and won't increase your property values. If you sell your house, the provider will remove the panels unless the buyer wants to continue with the lease.
  • Power purchase agreements (PPAs): With a PPA, in place of paying the cost of the panels upfront, you'll pay your contractor an agreed amount for the power you generate. Each payment will often be less than what you would pay your utility for the same power. However, PPAs are long-term commitments, with some lasting up to 25 years. You could be subject to penalty fees if you move out of your home or buy out of the contract.
  • Solar financing: If you would like to get the fastest ROI, get the tax breaks you deserve, and take advantage of local incentives, consider a solar loan. New lenders specializing home energy projects have come onto the scene in the banking sector, and you could avoid paying a down payment or interest with a good lender. You may need to have a credit check done, but lenders may still have great options for you even if you have a limited or weak credit history.
Besides the price of the system, your bill will also include the cost of your solar company's labor and preliminary work done by other contractors. An application fee may be required if you want to participate in net metering.

Residential Solar Incentives and Cost Support

Utility companies and state governments reward going solar through a variety of different programs, like the following:

  • Rebates: Equipment manufacturers, utility companies, and governments often offer rebates to promote people to transition to solar. If your contractor thinks you qualify for a rebate, it will help you fill out the application. If approved, you could receive the money directly or as a credit on your installation or power bills.
  • Tax credits: The IRS offers a 30% tax credit on the value of your new solar equipment, so you should include Form 5695 with your federal returns for the year. Your state, county, or city could also provide similar income or property tax credits, or even exempt solar equipment for a period of time after installation.
  • Net metering: Many homeowners have solar panels that generate more electricity than their property needs. If you're enrolled in a net metering program, you'll transmit power you don't use back to the grid in exchange for credits on your energy bill. This saves you money and bolsters the security of the power grid for others in your area.
  • Net billing: Net billing works similarly to net metering in that your solar system will send energy you don't use to the grid. However, rather than earning credits on your utility bills, you'll sell the power to the utility at a wholesale rate for a direct payment.

Solar Energy By the Numbers in South Dakota

Curious about solar energy's impact on the South Dakota economy? These statistics paint a good picture of the growing solar market in your area.

  • Solar energy has enabled the creation of 448 jobs in South Dakota, with more added as companies grow and technology continues to improve.
  • Without solar, the average family spends about $1,473 each year on their electricity bill.
  • In South Dakota, the average new home solar array is rated for up to 10.1 kW and costs $24,122.
  • A 5 kW solar installation in South Dakota has an average payback period of 10.3 years. However, you would also save $923.40 on your energy bill.
  • South Dakota generates 3 MW of residential solar energy, serving 269 homes and counting.

Useful Resources

Want more information on South Dakota's solar opportunities, incentives, and regulations? Visit these online pages and reference guides:

  • DSIRE: DSIRE has tons of information on the newest local and statewide solar incentive offerings. Search by your location, utility company, and the type of solar system you're installing.
  • PVWatts: PVWatts is a helpful online tool that lets you virtually try out different solar configuration ideas on your house. You can find out how much energy your panels would produce and decide which positions would give you the greatest ROI.
  • Best solar companies by city: If you're looking for tailored solar company recommendations in your area, Today's Homeowner has just what you need. We can recommend you the best companies in cities like SIOUX FALLS,SD, RAPID CITY,SD and ABERDEEN,SD.

South Dakota Solar Incentives Guide

Incentive Type: Personal Tax Credit

Website: ecowatch.com

Incentive Amount:

30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Frequently Asked Questions About Solar in South Dakota

If you don't have much roof space or you aren't able to install many panels, a solar water heating system might be the best starting point. However, if you have the space and budget for a photovoltaic array that can power your entire home, you'll have the best possible versatility and value.

Solar energy is more effective and flexible than other types of renewable energy. You can utilize solar power for any appliance or fixture in your home or sell it to the grid for more savings.

There are three common types of solar panels: monocrystalline, polycrystalline, and thin-film. Each kind has different characteristics and drawbacks that make it ideal for certain applications. Monocrystalline panels are the gold standard for efficiency, while other types may be better if you're on a tight budget or you have a uniquely-shaped roof.

Before hiring any contractor, you should confirm their credentials and experience to ensure they're qualified for your project. A quality contractor will keep an unobtrusive and safe work environment, practice clear and regular communication, and find ways to minimize your costs without compromising on safety or efficiency.

In South Dakota, homeowners with a 5 kW solar system can expect to cut $923.40 from their bills per year. Based on the capacity and efficiency of your solar array, you could save between thousands and tens of thousands of dollars on your energy bills over the life of the panels.

Recently, the cost of solar panels has been steadily dropping. In South Dakota, the cost of solar panels is about $2,390 per kilowatt. A majority of homeowners decide to finance their solar panel system with a solar loan, which can save you thousands of dollars over time. Your contractor will engineer a solution that will generate enough energy to help you offset the upfront costs.

The best time to set up solar panels on your roof is whenever you can save the most money on your electricity bills. We recommend scheduling your installation during the season right before your electricity bills reach their highest point, usually in the spring or fall.

The average solar photovoltaic system capacity in South Dakota is 10.1. You can choose a larger system if your home has a lot of rooftop space or significant energy needs, or a lower one if you want to save money on your solar installation.

Find a Solar Company In South Dakota