I‘m excited to explore whether solar panels make sense to install where you live. With ample sunshine and low equipment costs but lagging adoption, the Mount Rushmore state seems ripe for solar expansion.
As a techie who loves crunching the numbers, I‘ll analyze if you could save money long-term. Stick with me through this solar guide to learn everything you need to decide!
South Dakota Way Behind in Solar Energy
Nationally, over 3% of electricity comes from solar panels on homes and businesses. But in South Dakota? A measly 0.01% despite great solar potential! Solar capacity per person ranks dead last among all states. Just take a look:
| State | Solar Capacity (Watts per person) |
|---|---|
| California | 780 |
| Arizona | 710 |
| New Jersey | 580 |
| South Dakota | 1 |
With ample sunshine, low installation costs, and incentives, there‘s no reason South Dakotans couldn‘t reap the benefits of solar like Californians and Arizonans! Let‘s figure out what‘s feasible for you…
Solar Equipment Costs In Your Area
Statewide the typical cost is $2.39 per Watt before incentives. But drilling down to your county provides a more accurate picture.
| County | Cost per Watt |
|---|---|
| Minnehaha | $2.32 |
| Pennington | $2.38 |
| Lincoln | $2.51 |
| Brown | $2.44 |
To compare, Midwestern neighbors Iowa and Minnesota pay $2.71 and $2.88 per Watt respectively. You enjoy quite the discount to go solar!
Now a common 6 kW system runs $15,774 in Minnehaha county before credits and rebates. Let‘s see how incentives can cut that price…
Slice Price 30% with Federal Tax Credit
The federal solar tax credit offers a dollar-for-dollar reduction on your tax bill. For systems installed in 2022, you would get 30% back, dropping the net cost to $11,042. If you wait until 2023 and beyond, it‘s still 26% – not bad!
Based on your $70k income and $6k annual tax bill, you would eliminate owing taxes plus get $1k back from Uncle Sam post-install. Cha-ching!
Not bad right? And we‘re just getting started finding savings!
Estimate Your Solar Electricity Output
Now here comes my favorite part – digging into the nitty gritty production potential in your hometown. Using the Energy Department‘s PVWatts calculator, I estimate a 6 kW system in Sioux Falls could produce:
| Month | Est. Production (kWh) |
|---|---|
| January | 481 |
| July | 805 |
| 2021 Total | 8,752 kWh |
That translates to generating 90% of your typical usage. During sunnier months, you could even sell excess power back and make money!
Below I mapped out monthly production vs your electricity needs. Check out how little you need from the grid in summer!
Project Your Bill Savings
Given your 12 cent per kWh rate and monthly electric bill around $120 now, going solar would eliminate $105 in payments. That‘s $1,250 in annual savings once your solar system is up and running!
Based on projected 2.5% utility rate hikes yearly, your savings will grow over time. In 25 years cumulative savings could exceed $45,000!
When accounting for system cost and incentives, solar panels pay for themselves within 7-8 years. And they keep producing free renewable energy for another 15+ years. What a great investment!
Let‘s move on to who can actually install your system…
Recommended Local Solar Installers
While South Dakota lacks solar providers compared to other states, I have two trusted recommendations:
Black Hills Solar
Founded in 2021 right in Rapid City, this small startup has industry credentials that impressed me. NABCEP certification shows the technicians really know their stuff when it comes to safety, design, and installing efficiently.
Owners Ron and Jenny left careers in construction and engineering to follow their passion for renewable energy. They use high quality equipment and offer stellar 25-year panel and 10-year labor warranties that prove they stand behind their work.
Overall they earn an A+ for technical expertise, experience, and commitment to quality.
Midwest Solar
This regional company operates solar divisions across the Midwest. In business for 8 years now, Midwest Solar leverages partnerships with premium brands like SunPower to deliver exceptional equipment packages.
Their bigger operation means lower wholesale panel pricing that they pass along to customers. Though out-of-state, their online tools make it easy to request quotes and they use local sub-contractors.
While warranties only reach 10-years, you can expect superb components that typically outlast guarantees.
I suggest getting bids from both Black Hills and Midwest Solar when you‘re ready to take the solar leap! Ask about panel brands, monitoring tools, warranties, and maintenance packages to find the best fit.
Extra Financial Incentives to Know
I want to make sure you maximize savings, so don‘t miss these other solar perks!
| Program | Savings | Over 25 Years |
|---|---|---|
| Federal Tax Credit | 30% system cost | $4,732 |
| Net Metering | ~12¢ per kWh exported | $3,250 |
| USDA REAP Grant | 25% system cost | $3,944 |
| Total | – | $11,926 |
Between incentives and slashing utility bills, lifetime solar savings could exceed $55,000 in Sioux Falls!
Now you‘ve got all the information you need to decide if solar works for you. Let‘s recap key takeaways…
- Among best solar resources but severely lagging adoption
- Below average panel costs around $2.39 per Watt
- Federal tax credit cuts 30% off installation in 2022
- Estimated lifetime savings of $45,000+ in Sioux Falls
- Recommend local Black Hills Solar or Midwest Solar
- Extra incentives add $10k+ savings
Armed with this analysis, you can determine if solar panels fit your budget and principles. I‘m happy to chat more about your situation or plans for the future. Wishing you sunshine and lower bills!
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