Overview of Solar Energy in South Dakota
Solar energy adoption in South Dakota has been steadily growing over the last decade, though it still lags behind many other states. Currently less than 1% of the state‘s electricity comes from solar power. However, there are good solar resources across much of the state, and costs for solar installations have dropped dramatically in recent years.
South Dakota offers a handful of incentives for residents to go solar:
- Federal Solar Investment Tax Credit – This provides a 26% tax credit for installing a solar energy system.
- Property Tax Exemption – Solar system assets are exempt from state property taxes up to $50,000.
- USDA REAP Grants – Grants helping cover up to 25% of solar project costs for agricultural producers and rural small businesses.
With good solar potential and financial incentives, payback timeframes of 6-8 years are possible for solar installations in South Dakota.
The 5 Best Solar Companies in South Dakota
After extensive research into the solar contractors operating across South Dakota, we‘ve identified the 5 best solar companies based on factors like experience, qualifications, services offered, customer reviews and satisfaction, panel/inverter technologies leveraged, warranties provided, and overall value delivered to customers:
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GenPro Energy Solutions – Our top pick overall. GenPro is headquartered in SD and focuses exclusively on renewable energy installations across the state. They have installed over 500 solar energy systems, use high-quality components from reputable manufacturers like LG and Enphase, and offer competitive pricing. GenPro handles everything from permits/documentation to installation/maintenance, making it a worry-free process for homeowners. Customers consistently praise their level of expertise, responsiveness, and transparency.
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Midwest Solar – Midwest Solar delivers customized solar solutions to residential and commercial clients across South Dakota from their base in Sioux Falls. Each system is tailored to the client‘s specific energy needs through an extensive consultation process. Their design team has installed over 800 solar systems in the Midwest and specializes in incorporating energy storage and EV chargers as well. Backed by great warranties and service packages.
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Black Hills Solar and Wind – For nearly 15 years, this locally-owned company has provided the highest quality renewable energy systems across the Black Hills region and beyond. Their certified installation crews have completed over 500 installs in SD alone. Black Hills leverages robust safety protocols and leading technologies from manufacturers like SolarEdge and Lumos. While costs are competitive, their pricing is pretty standardized rather than customized to each home.
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Lakota Solar Enterprises – The only Native American-owned solar company in South Dakota, Lakota Solar specializes in off-grid and solar backup systems for remote homes and First Nations communities. Based on Pine Ridge Reservation, most of their projects are located across the western half of the state. For rural and tribal members looking to gain energy independence, Lakota Solar delivers expertise and social impact.
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SunPower by South Coast Solar – As a SunPower Master Dealer, South Coast Solar delivers the most efficient panels available from this premium manufacturer, maximizing energy production in South Dakota‘s varied climate conditions. Their track record and professional approach give customers confidence in their recommendations and long-term service capabilities. As a national company, pricing is a little higher but comes with SunPower‘s industry-leading panel production guarantee.
What To Look For in a South Dakota Solar Company
When researching contractors to install your solar energy system in South Dakota, keep the following key considerations in mind:
– Experience and Qualifications: Choose an established company with hundreds or thousands of successful installs under their belt, along with NABCEP-certified solar professionals on staff. This demonstrates expertise.
– Services Offered: Look for a "one-stop shop" that can handle solar panel specification/procurement, system design, permits/documentation, installation, interconnection paperwork, maintenance/monitoring, warranties and more. Less gaps in service the better.
– Panel and Inverter Equipment Used: Opt for Tier 1 equipment from reputable brands known for quality and performance, like LG, Panasonic, SolarEdge, Enphase or SunPower. This ensures long-term reliability.
– Warranties and Performance Guarantees: Quality installers will guarantee certain levels of system performance and back it with 25-year labor/equipment warranties (or better) to protect your investment.
– Reviews and Testimonials: Strong customer satisfaction ratings and praise for the sales and installation process demonstrate a solar company who truly looks out for client‘s best interests.
Solar Panel Installation Costs and Payment Options
For a typical 6 kW solar system in South Dakota, total installed costs average around $16,000-$18,000. Exact pricing depends on factors like your site location, roof type/orientation/shade, and equipment needs. Top solar companies like GenPro and Midwest Solar provide free estimates after assessing on-site conditions.
Most installers offer flexible payment options to suit different budgets, including:
- Cash purchase
- Solar loans (consumer financing from a lender partner)
- Solar lease or power purchase agreement (PPA)
Purchasing with cash or via a solar loan allows you to own the system outright and benefit from the most long-term savings. Solar leases and PPAs provide $0 down installation in exchange for monthly payments to the solar company who retains ownership.
Incentives like the federal tax credit plus ongoing utility savings generally provide a system payback period around 6-8 years in South Dakota.
Frequently Asked Questions
How much maintenance do solar panels need?
Solar panels are very low maintenance, especially compared to other home systems like HVAC. Typically just occasional inspections and cleaning. Reputable installers include preventative maintenance in their warranties.
How long will my solar panels last?
Quality solar panels still produce over 80% of original output after 25+ years. Many warranties guarantee at least 80% production for 25-30 years.
Can I sell excess solar electricity back to the grid?
South Dakota doesn‘t have net metering yet so excess solar energy gets compensated at lower wholesale electricity rates. New legislation is working so expand solar options.
| Company | Location | Years in Business | Notable Certifications | Services | Panel Brands | Average Install Cost |
|---|---|---|---|---|---|---|
| GenPro Energy Solutions | Piedmont, SD | 10 years | NABCEP | Custom design/install, O&M | LG, Panasonic | $3.40/Watt |
| Midwest Solar | Sioux Falls, SD | 5 years | NABCEP | Consulting, design, storage | SolarEdge, Enphase | $3.65/Watt |
| Black Hills Solar & Wind | Rapid City, SD | 15 years | NABCEP | Full install/maintenance | SolarEdge | $3.50/Watt |
| Lakota Solar Enterprises | Pine Ridge, SD | 10 years | multiple | Off-grid systems | Outback Power | $3.15/Watt |
| SunPower by South Coast | National | 40+ years | NABCEP | Custom design | SunPower | $4.00/Watt |
When comparing bids from different solar contractors, be sure to consider all factors – not just bottom line pricing. The overall value delivered in terms of equipment quality, services/support, and long-term electricity production is most important for your solar investment.
