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Solar Panels in Sioux Falls, South Dakota

Sioux Falls receives 1368.8 kWh per kWp of solar panels per year — 10.1% below the US national average of 1,550 kWh/kWp. At South Dakota's electricity rate of 13.6¢/kWh, an 8 kW system saves roughly $1,489/year and pays back in 10.2 years.

Solar is reasonably worth it in Sioux Falls. Note: The 30% federal solar tax credit (Section 25D) expired December 31, 2025. The numbers below reflect today's actual costs.

Annual yield:1368.8 kWh/kWp
Electricity rate:13.6¢/kWh
Payback:10.2 yrs
Location:43.54°N

Sioux Falls Solar at a Glance

Annual solar yield1368.8 kWh/kWp/yr
Optimal tilt angle33° south-facing
Avg. daily sun hours22.1 hrs/day
Electricity rate13.6¢ per kWh
8 kW system cost (2026)$22,400
Your net cost$22,400
Annual savings$1,489/yr
Payback period10.2 years

Last updated: April 11, 2026 · Sources: PVGIS v5.3, EIA

How Much Solar Power Does Sioux Falls Get Each Month?

Monthly solar yield (kWh per kWp installed) based on PVGIS satellite data for 43.54°N, 96.73°W.

82
95
115
130
134
135
149
138
120
111
89
73
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Best month: 149.1 kWh/kWp (Jul)Worst month: 72.5 kWh/kWp (Dec)Monthly avg: 114 kWh/kWp

Live Solar Forecast for Sioux Falls

Real-time generation estimate for an 8 kW system based on today's weather forecast. Data: forecast.solar.

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Is a Home Battery Worth It in Sioux Falls?

A battery stores excess midday solar for use at peak evening hours. At 13.6¢/kWh in Sioux Falls, here is the math for the two most popular options.

Tesla Powerwall 3
Capacity
13.5 kWh
Installed cost
$11,500
Annual savings
$536
Payback
21.5 yrs

10-year value: $5,360 · Based on 365 cycles/yr, 13.6¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Generic LFP 10 kWh
Capacity
10 kWh
Installed cost
$8,000
Annual savings
$381
Payback
21 yrs

10-year value: $3,810 · Based on 350 cycles/yr, 13.6¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Battery ROI improves significantly in states with Time-of-Use (TOU) rates where peak electricity can cost 2–3× the off-peak rate. California (PG&E, SCE, SDG&E), New York (ConEd), and Massachusetts (Eversource) have the strongest TOU incentives for battery storage.

What Are the 25-Year Solar Savings in Sioux Falls?

Based on 1368.8 kWh/kWp/yr yield, 13.6¢/kWh electricity rate, and a 2026 system cost of $2.80/W. Federal tax credit expired Dec 31, 2025 — not included.

System cost
$22,400
Installed, 8 kW
Federal ITC
Expired
Sec. 25D ended Dec 2025
Net investment
$22,400
Your actual cost
25-yr savings
$35,364
Est. lifetime benefit
Federal Solar Tax Credit Update: The 30% residential solar tax credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill. Cash and loan purchases no longer qualify for the federal credit. State and local incentives below may still apply — check with your installer.

What Solar Incentives Are Available in Sioux Falls, South Dakota?

The federal ITC expired in 2025. These state and utility incentives still apply in South Dakota.

Property Tax Exemption
South Dakota exempts the solar-added home value from property taxes. A $22,400 system won't raise your tax bill.
Net Metering
Earn bill credits for excess solar electricity sent back to the grid.
Utility & Local Programs
Full retail net metering, property tax exemption
Calculate Your Exact Savings
Enter your monthly bill, roof size, and location for a personalized estimate.
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Solar Panels in Sioux Falls: Frequently Asked Questions

How much do solar panels cost in Sioux Falls, South Dakota in 2026?
In Sioux Falls, a typical 8 kW solar system costs approximately $22,400 installed (at ~$2.80/W, the 2026 US average). The federal solar tax credit expired December 31, 2025, so that 30% rebate is no longer available for residential cash or loan purchases. Prices vary by installer, panel brand, and roof complexity.
Is solar worth it in Sioux Falls without the federal tax credit?
Sioux Falls generates 1368.8 kWh per kWp annually — 10.1% below the US average. At South Dakota's electricity rate of 13.6¢/kWh, an 8 kW system saves roughly $1,489/year and pays back in about 10.2 years — even without the expired federal credit. Solar is reasonably worth it in Sioux Falls.
How much electricity do solar panels produce in Sioux Falls?
In Sioux Falls, each kW of solar panels produces approximately 1368.8 kWh per year. An 8 kW system generates about 10,950.4 kWh annually — enough to cover the average South Dakota household's electricity use. Peak production hits 149.1 kWh/kWp in Jul, with the lowest output of 72.5 kWh/kWp in Dec. Data source: PVGIS v5.3 satellite radiation model.
What solar incentives are available in Sioux Falls, South Dakota?
the expired federal tax credit (Section 25D) expired December 31, 2025 and is no longer available for residential buyers. South Dakota also exempts solar systems from property tax assessments. Net metering and local utility programs may provide additional savings.
How long is the solar payback period in Sioux Falls?
In Sioux Falls, the average payback period for an 8 kW solar system is approximately 10.2 years. This is based on 1368.8 kWh/kWp annual yield (PVGIS data), a 13.6¢/kWh electricity rate (EIA 2026 data), and an $22,400 installed cost. After payback, the system produces free electricity for 15–20 more years.

Environmental Impact & Home Value in Sioux Falls

An 8 kW solar system in Sioux Falls produces roughly 10,950.4 kWh/year. Here is what that means beyond your electricity bill.

🌿
CO₂ avoided per year
4.2 tonnes
4,227 kg · EPA grid avg 0.386 kg/kWh
🌳
Tree equivalent
194 trees
Trees needed to absorb same CO₂ annually
🏠
Home value boost
+$1,546
Avg +6.9% (Lawrence Berkeley Lab / Zillow data)
US homes powered
1
Avg US home uses 10,632 kWh/yr (EIA 2024)

How Many Solar Panels Do You Need in Sioux Falls?

The right system size depends on your annual electricity usage and how much of your bill you want to offset. In Sioux Falls, where annual solar yield is 1368.8 kWh per kWp, here is what different households typically need:

Annual usageSystem sizePanels (400 W)Est. costAnnual savings
6,000 kWh
Small home
4.4 kW11 panels$12,320$816/yr
10,800 kWh
Average home
7.9 kW20 panels$22,120$1,469/yr
15,000 kWh
Large home
11.0 kW28 panels$30,800$2,040/yr
20,000 kWh
Large + EV
14.7 kW37 panels$41,160$2,720/yr

Costs based on $2.80/W installed (2026 US average). Panel count assumes 400 W modules. Savings based on current 13.6¢/kWh rate. State incentives not included — see above for South Dakota credits.

Sioux FallsSolar Resources & 2026 Incentives

Key information for homeowners in Sioux Falls going solar in 2026 — after the federal 30% tax credit expired December 31, 2025.

⚡ Federal Tax Credit Status (2026)

The 30% Section 25D residential solar credit expired December 31, 2025. An 8 kW system in Sioux Falls costs $22,400 after any applicable state credits. The commercial Section 48 credit (for businesses, landlords) was not affected.

IRS Residential Clean Energy Credit →
🔌 Net Metering in South Dakota

South Dakota has a net metering policy. Contact your local utility for current export rates.

DSIRE — South Dakota Incentive Database →
🏛️ South Dakota State Incentives

Full retail net metering, property tax exemption

✓ Property tax exempt
📚 Authoritative Sources