Solar power in South Dakota has high potential but little practical application. The state ranked 50th among U.S. states in installed solar polar in 2015 with no utility-scale or large commercial systems. Photovoltaic panels on rooftops can provide 38.7% of all electricity used in South Dakota using 3,800 MW of solar panels. The state is ranked 14th in the country in solar power potential, and 4th in wind potential.
Offering net metering is required by federal law, but South Dakota is one of only four states to not have adopted a statewide policy on net metering, which means it needs to be negotiated with the utility.
A solar project in Pierre is expected to be online in 2017. It will cost $2 million and cover 5 acres.
When you install your solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.
Most people are eligible to claim this credit (you must owe federal taxes to be eligible).