Solar ROI Calculator for Sioux Falls, SD

Stop guessing. See exactly how much the 30% Federal Credit saves you in 57101.

Calculate Savings for Sioux Falls (57101)

$150

Fetching NREL Solar Data for Sioux Falls...

25-Year Savings

$57,563

Break-Even

9.5 Years

Net Cost

$18,528

Get 3 Official Quotes for 57101 →

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Is Solar Worth it in Sioux Falls?

Residents of Sioux Falls look to solar primarily for stability. Locking in your energy costs now protects you from future rate hikes that are expected to hit the region in the coming years.

Homeowners in Sioux Falls are currently paying an average of 14.1 cents per kWh. Solar is a solid long-term bond, beating inflation in South dakota while immediately increasing your home's resale value.

With the Federal Solar Investment Tax Credit (ITC) currently set at 30%, a typical 6kW to 10kW residential system in the 57101 area can typically pay for itself in just 7.5 to 9 years. After this "break-even" point, your system generates effectively free electricity for the remainder of its 25-year lifespan.

Key Sioux Falls Statistics

  • Avg Rate: 14.1¢ / kWh
  • Sun Exposure: High (Northern US)
  • Est. Payback: 7.5 Years
  • Incentive: 30% Federal ITC

State Incentives for SD

Beyond the federal credit, residents of Sioux Falls should check for local net metering policies offered by their specific utility provider. These policies determine how much you get paid for sending excess energy back to the grid.

Frequently Asked Questions in Sioux Falls

Is solar worth it in Sioux Falls, SD?

Yes. With electricity rates in Sioux Falls currently averaging 14.1 cents/kWh, most homeowners see a break-even point between 6-9 years. This is significantly better than the national average.

Does the 30% Tax Credit apply to residents of SD?

Absolutely. Homeowners in Sioux Falls are eligible for the 30% Federal Investment Tax Credit (ITC). This is a dollar-for-dollar reduction in the income tax you owe.

How long do solar panels last?

Modern tier-1 solar panels are warrantied for 25 years but often last 30+ years. Our calculator accounts for a 0.5% annual degradation in efficiency.

What is Net Metering?

Net metering allows you to sell excess electricity back to the grid. Policies vary by utility company in your area, but it is a key factor in maximizing ROI.

Methodology: How We Calculated This

  • Irradiance: NREL PVWatts® V8 API data for coords 43.5446, -96.7311.
  • Escalation: Conservative 2.5% annual utility rate increase.
  • Degradation: 0.5% annual panel efficiency loss.

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