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
| Utility | Xcel Energy Minnesota |
|---|---|
| Electricity use | 771 kWh a month |
| Best-value system | 3.3 kW, about 8 panels, 4,650 kWh a year (50% of use) |
| Cost | $11,750 |
| First-year savings | $630 |
| Payback | 19.0 years |
| Exported power | Full retail net metering (Xcel Energy Minnesota) |
Cash purchase, no federal credit, 1.9% yearly rate increases. Run it with your own numbers.
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
- Aberdeen no payback
- Rapid City 20.3 yrs
- All of South Dakota
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.