Best Solar Companies in South Dakota

In our experience, the best solar energy companies have a few things in common: great reviews, transparent contracts, reliable equipment and comprehensive warranties. Look for companies with plenty of experience installing solar panels in South Dakota. It makes it easier to navigate regulations, permits and available financial incentives.

• Check certifications: South Dakota solar installers are required to have an electrical contractor license. We also suggest hiring NABCEP-certified installers. This shows you the company takes its business seriously.
• Read reviews: Research the company's track record and read reviews. Look out for red flags: Complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews.
• Get quotes: Get multiple solar quotes to compare prices and services. Be cautious of companies that provide significantly lower estimates than others (this may indicate lower quality).
• Read the fine print: Carefully review proposals and financials, understand legal considerations, and ask about maintenance before signing an agreement with any solar company. Make sure you understand everything about the payment terms, warranty and ongoing services.

Average solar panel costs in South Dakota typically range between $13,550 and $41,069. This doesn’t include the cost of a solar storage battery — which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you want to go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

The size of your solar panel system is a big factor in your total cost. It also depends on what incentives you’re eligible for, the condition of your roof and how much sunlight exposure it gets.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. In South Dakota, the average cost per watt is $4.11.

Average solar panel costs by system size in South Dakota

How can I pay for solar panel installation?

Getting solar panels is like buying a car. You could pay cash, but many finance instead. A solar loan works like most other types of loans — there is an application process, and you pay it back over time with interest. Alternatively, leasing solar equipment is an attractive option for people who don’t want to get a loan or be responsible for maintaining a system.

Solar panels are designed to last 25 to 30 years.

Using a home equity line of credit or loan to finance a solar installation can be another option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Solar incentives in South Dakota are relatively limited, and the state government did not apply for federal Solar For All funding. Incidentally, the federal solar investment tax credit (ITC) is usually the most significant financial incentive for homeowners.

The ITC reduces your federal tax liability by 30% of the cost of your solar energy system. This tax credit applies to both residential and commercial installations, and it includes the cost of the solar panels and other equipment, as well as labor and additional features for monitoring the system.

The ITC expired at the end of 2025.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the ITC reduces what you owe to $12,000. The ITC is a nonrefundable credit, meaning you can only claim up to the amount of taxes you owe.

However, the credit rolls over to the next tax year if you don’t use the full amount. So, if you only owed $2,000 the year you went solar, you could claim the remaining $1,000 the next taxable year.

South Dakota gets a moderate solar potential — not as much sunlight as in the Southwest, but still enough to make solar panels worth it for homeowners. On average, South Dakotans with solar panels can avoid $8,381 in total utility costs over 25 years.

Going solar is especially valuable if you also have an electric vehicle (EV). Having an EV increases your electricity demand. By using solar panels to meet this increased demand, you maximize the utilization of your solar energy system. This leads to a quicker return on your investment in solar panels, as you’re offsetting more electricity that you would otherwise have to purchase from the grid.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

The general consensus is that solar panels are worth it in South Dakota. Assuming an upfront purchase, it takes about 17.83 years to break even (when your savings with solar panels make up for the cost).

» STILL NOT SURE? Solar energy pros and cons