Benefits of Solar Energy
Solar energy offers numerous advantages that will enhance your home for years to come.
- Lower utility costs: Generating some or all of your own energy will spend less on electricity long-term.
- Better energy independence: Photovoltaic systems with battery backups work through power outages and emergencies, and you won't have to depend on the electrical grid for your safety and comfort.
- Reduced carbon footprint: Adopting 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 homeowners who decide on solar could qualify for special financing, tax credits, rebates and reimbursements. Here are just a few of the area's incentive offerings.
Incentive Type: Property Tax Incentive
$50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt
Incentive Type: Rebate ProgramWebsite: southeasternelectric.com
Ground Source Heat Pump: $800
Air to Air Heat Pump: $600
Refrigerator or Freezer: $100
Clothes Washer or Dryer: $50
Water Heater: rebates on Marathon water heaters, $500-$700
Incentive Type: Loan ProgramWebsite: southeasternelectric.com
Heat Pumps/Electric Heat: Up to $10,000
Incentive Type: Personal Tax CreditWebsite: ecowatch.com
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 valuable solar array. Make your choice based on the following key factors.
Licensing and Training
South Dakota's Department of Labor and Regulation issues electrical contractors' licenses, which an installation company legally needs to perform solar panel work. For solar thermal systems, all regulations require is a licensed plumber to connect the system to your utility. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar sector's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Sioux Falls
Your solar panels' type will influence how much energy you can produce. Monocrystalline panels 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. Use the table in this section to get an idea of the amount Sioux Falls solar companies might quote for your specific system.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Sioux Falls
Choosing the correct financing plan will affect your overall solar system cost and potential savings. Common payment options include leases, power purchase agreements, loans, and cash payments. Though it requires a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the second most effective option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-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, like an electric bill. We usually don’t recommend these two choices because you won't own the solar system and are disqualified from using solar incentives. Ask each installer you're considering about the payment plans it offers. A representative can help you determine the best option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Sioux Falls.
A 26% federal tax credit applies to new home solar systems purchased through 2032. Further incentives may be available through city and state governments, usually in the form of rebates and special financing programs.
|Solar System Capacity
|Estimated Payback period
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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?
Will solar panels raise my Sioux Falls home worth?
How can I determine my home's solar feasibility?
What upkeep do my solar panels need, and how frequently do they need it?
How long does it take to pay back a solar loan in Sioux Falls?
How does "net metering" work, and do I need to participate?
Some states or energy providers require you to enroll in net metering when installing your solar system, while others give you a choice. Either way, once you sign up, you'll earn a bill credit or check for your excess generation at a retail or wholesale rate.
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