Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Smaller power bills: Generating some or all of your own power will spend less on electricity long-term. Plus, some states provide net metering programs that enable you to sell your surplus energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems work through blackouts and emergencies, and you won't have to depend on your power company for your safety and well-being.
- Reduced carbon footprint: Using solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Sioux Falls Homeowners?
South Dakota agencies and electric companies offer a number of solar incentives to help minimize your solar system costs. Here's a breakdown of eligible solar programs where you live.
Incentive Type: Property Tax Incentive
Incentive Amount:
$50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt
Incentive Type: Rebate Program
Website: southeasternelectric.comIncentive Amount:
Ground Source Heat Pump: $800
Air to Air Heat Pump: $600
Refrigerator or Freezer: $100
Dishwasher: $50
Clothes Washer or Dryer: $50
Water Heater: rebates on Marathon water heaters, $500-$700
Incentive Type: Loan Program
Website: southeasternelectric.comIncentive Amount:
Heat Pumps/Electric Heat: Up to $10,000
Weatherization/Insulation: $3,000
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Sioux Falls
Choosing a company is the first step toward an effective and cost-efficient solar energy system. Here are some important factors to consider while searching for a solar specialist.
Licensing and Training
The South Dakota Department of Labor and Regulation issues electrical contractors' licenses, which your chosen contractor legally needs to perform solar panel work. For solar thermal systems, you'll need a licensed plumber to connect the system to water mains. Solar companies can also pursue accreditations from trade groups and standards organizations. The most recognized ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Sioux Falls
Your solar panels' type will influence how much energy you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
If you'd like to charge an electric car or use your solar power in inclement weather, you can pay extra for add-ons. By selecting the right components, you can make your system more efficient and user-friendly. Not every solar contractor offers these add-ons, so look for a company that sells them if it's crucial for you.
You can expect to pay about $17,900 on average for a five-kilowatt solar energy system in Sioux Falls. Check the table in this section to get an idea of how much Sioux Falls solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,108 |
| Solar Polycrystalline | $864 |
| Thin-Film | $505 |
| Solar Battery | $709 |
| Solar Home EV Charger | $2,659 |
Financing Solar Energy in Sioux Falls
There are many ways to pay for a solar energy system, and the right one will help you decrease overhead. A few of the most common options include power purchase agreements (PPAs), cash payments, leases, and loans. Though it involves a large up-front payment, cash is the most cost-effective choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the next best option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for cost-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, as with an electric bill. We usually don’t recommend these two choices because you won't own the panels and cannot use solar incentives. Look for providers that offer multiple payment plans to find the right fit for your pocket.
The table below lists the average payback periods for different capacities of solar systems in Sioux Falls.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, utilities and local governments may have their own rebates and financing plans that could reduce your total cost even more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.1 years |
| 2 kW | 4.1 years |
| 5 kW | 10.3 years |
| 10 kW | 20.7 years |
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Frequently Asked Questions About Solar in Sioux Falls
How much money could I save by going solar in Sioux Falls?
How prevalent is solar energy in Sioux Falls?
Should I expect a property value increase after switching to solar energy?
How can I check my home's solar suitability?
What care do my solar panels need, and how frequently do they need it?
What is the average payback period for Sioux Falls solar panels?
What is "net metering," and how does it work?
Some states or utilities oblige you to participate in net metering when purchasing your solar system, while others give you a choice. Either way, once you participate, you'll get a check or bill credit for your excess generation at a wholesale or retail rate.
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