Typical home: Not worth it

Solar in Sioux Falls, SD

With Xcel Energy Minnesota's electricity at about 17.0¢ per kWh and 1,409 kWh of sun per kW, solar is not worth it for a typical Sioux Falls home today: about a 19-year payback.

Payback, typical home
19 yrsSouth Dakota: 21.8 yrs
25-year net
$4,330after paying $11,750
Sun
1,409kWh per kW per year
Electricity
17.0¢5% below U.S. average

A typical Sioux Falls home, by the numbers

UtilityXcel Energy Minnesota
Electricity use771 kWh a month
Best-value system3.3 kW, about 8 panels, 4,650 kWh a year (50% of use)
Cost$11,750
First-year savings$630
Payback19.0 years
Exported powerFull retail net metering (Xcel Energy Minnesota)

Cash purchase, no federal credit, 1.9% yearly rate increases. Run it with your own numbers.

Solar production per kW in Sioux Falls

kWh per kW each month, south-facing at 20° tilt. PVWatts v8 with local typical-year weather.

Show as a table
PeriodValue
Jan82
Feb97
Mar123
Apr141
May137
Jun149
Jul164
Aug139
Sep123
Oct105
Nov83
Dec67

Homes in Sioux Falls

Owner-occupied homes
60%
Single-family detached
52%
Median home value
$292k
Median year built
1993
Population
201,469
Roofs suitable for solar†
81%

Census ACS 2020–2024. †Share of 44,793 buildings Google Project Sunroof rated technically suitable (2019 snapshot).

Installers working in Sioux Falls

Public installation records for South Dakota don't name installers, so we can't rank local companies here. Browse installers in South Dakota.

Always verify the license and get at least three quotes. Compare quotes side by side.

Questions about solar in Sioux Falls

Is solar worth it in Sioux Falls, SD?

For a typical home in Sioux Falls, solar is not worth it at 2026 prices: a 3.3 kW system costs about $11,750 after state incentives, saves about $630 in year one and pays back in about 19 years. Enter your address for an estimate based on your roof and bill.

How much solar power does a system produce in Sioux Falls?

About 1,409 kWh per year for each kW of panels on a south-facing roof, based on PVWatts and local weather. That's 1% less than the South Dakota average. East- or west-facing roofs produce roughly 10–20% less.

Who is the electric utility in Sioux Falls?

Most homes in Sioux Falls are served by Xcel Energy Minnesota, at about 17.0¢ per kWh on average. Some areas are served by Sioux Valley SW Electric Cooperative, Southeastern Electric Cooperative.

How much do solar panels cost in Sioux Falls?

A fair cash price is around $3.00 per watt before incentives, so about $11,750 for a 3.3 kW system. There's no federal tax credit for homeowners who buy in 2026.

Nearby

Data: PVWatts (National Laboratory of the Rockies), EIA-861 2025 adjusted to 2026, U.S. Census ACS, LBNL Tracking the Sun, state policy research as of October 2026.