Federal solar credit ended Dec 31, 2025
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Net metering · South Dakota

South Dakota Net Metering and Solar Export Credits

Updated Data verified Nov 5, 2026

Set by each utility or retail provider. South Dakota has no statewide net metering rule; the Legislature has repeatedly rejected mandatory net metering. Utilities must buy power from small qualifying generators at a purchase price reflecting the value of the generation (federal PURPA/FERC rules), so export credits are set utility by utility.

On this page [ 5 ]

What Xcel Energy pays for exported solar

For a new rooftop system, Xcel Energy credits exported energy at about 3.16¢ per kWh[1], against an average South Dakota residential price of 14.58¢[2]. Every kWh you send to the grid earns this rate; power you draw is billed at retail.

Other South Dakota utilities, co-ops and municipal utilities set their own rates; check your utility's current tariff.

State rules that apply

  • What the rule says: “concluded mandatory net metering is not in the public interest”[3]

What it means for sizing and batteries

When exports earn much less than retail, each kWh you use at home as it is produced is worth more than one you export. Size to your daytime and evening use, shift loads (laundry, dishwasher, EV charging) to sunny hours or the plan's off-peak window, and price a battery against the gap between the retail and export rates.

The calculator uses the statewide rule until we add utility rates. See what solar costs in South Dakota.

FAQ

Frequently asked questions

Does South Dakota have net metering?

South Dakota has no statewide net metering rule; the Legislature has repeatedly rejected mandatory net metering. Utilities must buy power from small qualifying generators at a purchase price reflecting the value of the generation (federal PURPA/FERC rules), so export credits are set utility by utility.

sources

[ 3 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. Northern States Power Co. South Dakota Electric Rate Book SDPUC No. 2, Section 9, Sheet 2 - Occasional Delivery Energy Service, Rate Code E50 (effective 01-01-26)puc.sd.gov · checked Nov 5, 2026
  2. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  3. South Dakota PUC - Compensation for small generatorspuc.sd.gov · checked Nov 5, 2026

Tariffs last re-checked November 5, 2026.

Change log

  1. Monthly output per kW in Sioux Falls updated to [82.2, 96.7, 122.5, 141.2, 137.3, 149.0, 164.0, 139.0, 123.2, 104.5, 82.5, 66.8] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  2. Average solar radiation on the panels in Sioux Falls updated to 4.86 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  3. Solar output per kW in South Dakota (PVWatts, Sioux Falls) updated to 1408.9 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).