Solar Opportunities - South Dakota

Solar Offerings and Incentives

Homeowners in South Dakota who install solar are eligible for state and federal tax breaks as described below.

State and Local Incentives

Renewable Energy System Exemption

South Dakota offers a renewable energy system property tax exemption. The exemption is for systems under 5 megawatts and provides and exemption of up to $50,000 or 70% of the cost of the system, whichever is greater. More information on which systems are eligible can be found here. 

Federal Residential Renewable Energy Tax Credit

A federal-level investment tax credit (ITC) is now available to consumers wanting to purchase small wind turbines, solar panels, or geothermal heat pumps.  The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from Oct. 3, 2008 through Dec. 31, 2016. The credit covers 30% of the equipment cost, though some technologies have a credit cap of $2000. More details and a complete list of eligible technologies can be found here.