Typical customer: Not worth it

Black Hills Power and solar

Black Hills Power is an investor-owned utility serving about 69,800 homes in South Dakota, Wyoming, Montana. Here's what its rates and export rules mean for solar: for a typical customer, solar is not worth it.

Average price (2026 est.)
16.1¢13% above South Dakota average
Typical bill
$113702 kWh a month
Exports credited
~25%Avoided-cost export credit
Typical payback
20.2 yrs3 kW, cash

Export rules for Black Hills Power customers

Avoided-cost export credit, varies netting.

Avoided-cost buyback; verify current tariff.

Source

South Dakota net metering details

Solar for a typical Black Hills Power home

System3 kW (52% of 702 kWh/month)
Cost$11,000
First-year savings$555
Payback20.2 years
25-year net$3,042

Uses the utility's average price.

Solar adoption

Homes with solar (2025)
226
Share of customers
0.3%
Residential solar capacity
2 MW
Residential customers
69,800

EIA-861, 2025.

Cities served

Questions about Black Hills Power and solar

Does Black Hills Power have net metering?

Avoided-cost buyback; verify current tariff.

How much does electricity cost with Black Hills Power?

Residential customers paid an average of 15.1¢ per kWh in 2025 (EIA), about 16.1¢ adjusted to 2026. The typical home uses 702 kWh a month, a bill of about $113.

Is solar worth it with Black Hills Power?

For a typical customer, solar is not worth it: a 3 kW system costing about $11,000 pays back in about 20.2 years, with $3,042 net over 25 years.

How many Black Hills Power customers have solar?

About 226 homes had net-metered solar at the end of 2025, roughly 0.3% of residential customers (EIA-861).

Legal name: Black Hills Power, Inc. (EIA ID 19545). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.