Solar & Net Metering Policy
South Dakota does not currently have a statewide net metering policy. Solar owners should check with their specific utility for any available compensation programs. South Dakota does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value.
Net Metering Notes
No statewide net metering mandate. Utilities establish their own rules and rates.
Does South Dakota have net metering?
South Dakota does not have a statewide net metering policy. Contact your local utility to find out if they offer any solar compensation programs or alternative billing arrangements.
What solar tax credits are available in South Dakota?
South Dakota does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in South Dakota?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in South Dakota for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in South Dakota?
Yes. South Dakota offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in South Dakota?
South Dakota does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does South Dakota have an SREC market?
South Dakota does not currently have an active SREC market. Solar owners in South Dakota cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in South Dakota?
Statewide utility rebates are not currently available in South Dakota. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
South Dakota Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.