Is Solar Worth It in Sioux Falls, SD? (2026 Analysis)

Detailed solar ROI analysis for Sioux Falls, South Dakota. With 4.8 peak sun hours and electricity at $0.12/kWh, here is what you can expect from going solar.

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$19,634 20-Year Savings
7 yrs Break-Even Timeline
$9,800 Net Cost After Incentives
4.8 hrs Peak Sun Hours/Day
$0.12/kWh Electricity Rate (increasing)
192,517 Population

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20-Year Solar Savings Projection for Sioux Falls

This projection is based on a 7 kW system with 4.8 peak sun hours and $0.12/kWh electricity rate.

PeriodCumulative SavingsNet PositionStatus
Year 1$1,472$-8,328Paying off
Year 2$2,944$-6,856Paying off
Year 3$4,416$-5,384Paying off
Year 4$5,888$-3,912Paying off
Year 5$7,360$-2,440Paying off
Year 7$10,304$504Profitable
Year 9$13,248$3,448Profitable
Year 11$16,192$6,392Profitable
Year 16$23,552$13,752Profitable
Year 20$29,440$19,640Profitable

Estimates assume stable electricity rates. Actual savings may increase as rates rise.

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$0 down options available. Own your system and claim the 30% federal tax credit. Save up to $1,472/year.

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Solar Investment Breakdown for Sioux Falls

Gross System Cost 14000
Federal Tax Credit (30%) 4200
State Incentives 0
Net Cost 9800
Annual Savings 1472

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Local Solar Incentives in Sioux Falls

Local Programs: Federal ITC plus applicable state and local incentives

Electricity Trend: Rates in Sioux Falls are currently increasing. Solar locks in your energy costs and provides a hedge against future rate increases.

State Incentives: South Dakota offers net metering (partial). See all South Dakota incentives.

Financing Options for Sioux Falls Homeowners

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CashBest ROI. Own immediately.
LoanOwn system + tax credits.
Lease/PPA$0 down. Lower savings.

Best Solar Providers in Sioux Falls

ProviderTypeHighlightRatingAction
EnergySageMarketplaceCompare Sioux Falls installers4.8/5Get Quotes
SunrunInstaller$0 down solar in SD4.5/5View Plans
SunPowerPremiumHighest efficiency panels4.6/5Get Quote

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Frequently Asked Questions

Yes. With 4.8 average peak sun hours per day and electricity rates at $0.12/kWh (increasing trend), solar is a strong investment in Sioux Falls. The estimated 20-year savings is $19,634 with a break-even period of approximately 7 years.
The average solar installation in the Sioux Falls area costs approximately $14,000 for a 7 kW system before incentives. After the 30% federal tax credit and state incentives, the net cost drops to approximately $9,800.
Federal ITC plus applicable state and local incentives The 30% federal Investment Tax Credit (ITC) is available to all Sioux Falls homeowners. Check your specific state and utility for additional programs.
A typical home in Sioux Falls uses a 7 kW system (approximately 18 panels). This produces roughly 12,264 kWh per year based on 4.8 peak sun hours per day.
Electricity rates in Sioux Falls are currently increasing. The current average rate is $0.12/kWh. Solar locks in your energy costs and protects against future rate increases.

SolarSavingsAI Research Team

Solar Energy Analysts

Our team analyzes solar incentive data from federal (DOE, IRS), state (DSIRE), and utility sources to provide accurate savings estimates. Data is reviewed quarterly and cross-referenced with NREL benchmarks.

Sources: DOE, IRS, DSIRE, NREL, EIA Updated: 2026 Full Methodology Editorial Standards

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