4 Best Solar Companies in South Dakota (2024 Guide)
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South Dakota generates most of its electricity from hydroelectricity and wind energy, but it falls short on solar energy use. Given that the state has an above-average number of sunny days per year, solar energy could be another invaluable resource for residents. Along with reducing your carbon footprint, solar energy helps reduce your energy costs.
Our team spent more than 60 hours researching the top solar installers on both the state and national level. Learn about our picks for South Dakota’s best solar companies.
Compare Solar Energy Companies in South Dakota
South Dakota’s Top Solar Energy Companies
Our Top Picks for Solar Panels in South Dakota
SunPower
Best High-Efficiency System
GenPro Energy Solutions
Best Regional Installer
Wegner Roofing and Solar
Best Regional South Dakota Installer
Does South Dakota Provide Solar Incentives?
South Dakota offers very limited solar incentives for homeowners. The federal solar tax credit offers the best savings on solar panel costs. Homeowners receive 30% off installation charges for qualifying solar panel equipment, such as roofing and solar batteries. You must own your solar system to qualify for the federal tax credit.
State-level incentives include the Renewable Energy System Exemption. This policy offers a property tax exemption for solar systems. Although adding a solar system increases home value, it also increases property tax. This incentive reduces those added taxes but does not eliminate them completely. South Dakota’s policy offers an exemption for the first $50,000 or 70% of the assessed solar system value, whichever is greater. This exemption applies to all solar systems up to 5 megawatts (MW) capacity.
Although not mandated statewide, South Dakota electric companies offer net-metering programs. Homeowners can send back excess energy in exchange for energy bill credits. These credits remain on your account and help offset future electricity rates. Homeowners should contact their utility company for more details on net-metering and interconnection options.
South Dakota offers additional rebates for energy efficiency upgrades and solar-powered appliances. Residents should check the Database of State Incentives for Renewables and Efficiency (DSIRE) for additional areawide solar and efficiency incentives.
What Should You Look For in a Solar Company?
Compare the following services and benefits when shopping for solar installation companies.
Solar Services
Providers complete their solar panel installations with in-house installers or third-party contractors. Since in-house installers work directly for the solar provider, they maintain better installation quality and better communication throughout the process. Third-party installers increase your chances of a faulty installation since teams vary in different areas. Communication is divided between the third-party team and the providers, leading to more miscommunication and possible delays. We recommend using installers with in-house teams.
Some solar companies offer services to help keep your system running smoothly. These services include solar monitoring and dedicated apps that offer panel performance insight. They may also offer home upgrade services. Here are some common solar and home services offered by providers:
- Dedicated mobile app or web portal
- Electrical services
- Energy efficiency audits
- Energy monitoring equipment
- Roofing services
- Smart home upgrades
- Solar system monitoring
Warranties
Solar panel systems warranties should last as long as the average panel life span of 25 years. We found that top-quality home panels have 25 years or longer of coverage, while cheaper solar panels offer 15 years or less. You’ll receive one or more coverage types with your solar system. Below are the most common warranty types:
- Manufacturer’s (or product) warranty: This plan protects your system against manufacturing defects.
- Workmanship (or labor) warranty: This warranty covers any installation-related problems.
- Power performance guarantee: This coverage includes an estimated timeline of your panels’ performance through their warranty period and offers replacements or repair options if panels fail to meet specifications.
Warranty coverage, length, and availability vary between solar installation companies. Check each company’s included coverage to find the best protections.
Payment Options
Most solar companies offer two or more solar financing options. Certain options offer more benefits than others. For example, cash payments and solar loans provide the best return on investment (ROI) and grant you full system ownership. Most solar incentives, such as the federal tax credit, require legal ownership as a qualification. We’ve outlined the most common financing options below:
- Up-front (or cash) payments: You pay the full up-front costs for your solar system.
- Solar loans: You’ll make an initial down payment, then continue monthly payments with added interest for a certain time frame.
- Solar leases: Homeowners rent their solar system from the provider.
- Power purchase agreements (PPAs): You pay only for your monthly solar energy use, not the system.
With solar leases and PPAs, system ownership remains with the provider which disqualifies you from solar incentives. We don’t recommend leasing options unless you have no interest in owning your solar system. Instead, you should choose up-front payments or solar loans to maximize your savings potential.
Customer Support
After reading solar company reviews, we discovered that some customers had issues reaching their company’s customer support team. We recommend looking for solar installers who offer several customer service communication options. Your chosen solar company should offer one or more of the following contact options:
- Phone
- In-app communications
- Online chat
- Online forms
- Text messaging
Check third-party customer reviews for any complaints about unreturned calls, delayed responses, or unfriendly customer service reps.
How To Get a Solar Quote in South Dakota
Request quotes from multiple solar installers and compare pricing, equipment options, warranty coverage, and services. Our below guide gives a general overview of the typical solar quote and consultation process.
- Schedule a consultation: Contact each installer for an in-person or virtual consultation. Plan for two hours for each appointment.
- Find your latest electric bill: Solar installers use your utility bill to determine your energy needs and final solar project. Have your latest bill available for your appointments.
- Assess your roof design: Each installer will perform an in-person or virtual roof assessment to determine available space, structural integrity, and design limitations. Since some solar panel types require more room, the consultant will find the ideal location for your solar arrays.
- Design your PV system: The solar provider will design your new system based on the previous assessments. During this step, you can choose your preferred solar panel brands, inverters, and system components, plus add any accessories including energy storage or electric vehicle (EV) chargers.
- Review the final quote: You’ll receive an itemized quote detailing your full system costs, labor charges, and warranty details. You’ll also receive your financing options and estimated payback period. Compare each quote before selecting your preferred solar installer.
Our Conclusion
Our team picked SunPower as South Dakota’s top solar company. The company’s high-performing solar energy systems are built to last over two decades. Its system comes with a 25-year comprehensive warranty and a performance guarantee to ensure excellent energy production over time.
Remember to request free quotes from at least three solar installers to find the right company for your solar conversion.
Other South Dakota Home Service Resources
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FAQ About Solar Companies in SD
Is South Dakota good for solar energy?
Yes, South Dakota is good for solar energy thanks to its sunny environment. The state receives 213 sunny days annually, which is higher than the national average of 205. Since solar panels work best in sunny conditions, South Dakota residents will maximize their energy savings. Although the state offers few cost-saving incentives, going solar is worth it in South Dakota.
What is the largest solar farm in SD?
The Wild Springs Solar Project in Pennington County is the largest solar farm in South Dakota. The solar farm produces 128-MW of solar energy once it begins operation in 2023. This project will save more than 190,000 metric tons of carbon dioxide emissions by running on clean energy.
Does South Dakota have net metering?
Yes, South Dakota does have net metering, but the South Dakota Public Utilities Commission (PUC) doesn’t mandate its availability throughout the state. Only certain utility companies offer the program to residents. Check with your local utility company for net metering availability.
How many solar companies are there in SD?
There are 14 solar companies in South Dakota, according to the Solar Energy Industries Association.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
