South Dakota Solar Incentives
UPDATED: MARCH 3, 2022
When looking at solar panel incentives, we are incredibly lucky in the USA, to have numerous programs and incentives to support you on your clean energy journey. They are designed to help you become more energy sustainable and reduce your carbon footprint. At Solar Sesame we have put together some of the key ones in your state.
Before we dive into see what’s currently available let’s quickly get an overview of some of the most popular.
Not available in all states, Solar Renewable Energy Certificates allow you to receive credits for the solar electricity you produce. You then sell the electricity back to the utility company or local SREC marketplace.
Net metering is an electricity billing incentive that helps you to generate your own electricity fully or in part with renewable energy sources like solar. You can then,, depending on the state’s criteria, sell back energy you produce to the utility company.
This is a great incentive that gives you exemption from property taxes. Once you install a solar power system you can apply for a tax exemption to bring down your taxes.
Another great tax inducement are tax credits that you receive from the government to offset some of the installation costs of a solar panel system. Some states also have additional state solar tax credits.
This takes the form of a qualified part refund that you can receive from the utility company, local government or any company that has signed up for the program. You can only apply once the solar panel system is installed.
These are often some of the best and cheapest ways to get you on the solar energy ladder. They are usually offered at a reduced interest rate.
A performance-based incentive (PBI) schemes are awards that give you a specified $ amount for every kWh of solar energy you produce. Not every state and utility company has signed up for this program.
At Solar Sesame we have done some exhaustive research to identify what solar panel incentives are available in your state. So let’s see what’s available.
The state does offer The Federal Investment Tax Credit (ITC). Overall, you can expect to receive 26% of the cost of your solar set up. In 2023, the tax credits will drop significantly to 22%. It’s worth noting that you are only eligible for Tax Credits if you are a homeowner and have purchased their solar panel system outright.
The state does not have a State Net Metering Policy. This means that if you want to get net Metering you would have to negotiate directly with your utility company.
To see the states that have a Net Metering Policy, check out the following from The National Conference Of State Legislatures
In addition to the above benefits, South Dakota residents who make the switch to solar power can also utilize the solar Investment Tax Credit! This Federal credit allows owners – not leasers – of a system to deduct 26% of the cost of installing said system from their Federal taxes.
The state offers a great incentive to any homeowner who decides to install a solar panel system. Because solar energy will increase the value of your property, the state offers you a tax exemption, so that they only have to pay the pre-installation tax figure on their property as opposed to the tax on the increased valuation.