South Dakota State Solar Power Rebates, Tax Credits, and Incentives
Old Saloon #10, Deadwood
2012 Update
With Mount Rushmore, the Crazy Horse Memorial, the Badlands, and the Black Hills, who wouldn’t want to be out in the sun in South Dakota. Oh yeah, it’s the home of the Sturgis Harley rally too. With people coming from all around the world to visit, South Dakota should use renewable energy to keep powered up while protecting its great natural environment. Here’s what the state legislature has done to promote clean solar energy so far…
South Dakota’s Renewables Portfolio Standard
A Renewables Portfolio Standard (“RPS”) is a law or other piece of regulation that mandates that a certain percentage of at state’s energy production comes from renewable resources by specified target dates. A strong RPS is important because it forces utility companies to promote conversion to renewable energy. That generally means free money for you in the form of rebates and performance payments when you switch to solar power.
South Dakota has set a voluntary goal of 10% renewable energy by 2015. That’s right, voluntary; there are no penalties or other sanctions for utility companies that do not meet the 10% goal.
Unfortunately the patterns we’ve seen elsewhere is repeated here: A voluntary RPS simply is not enough to spark meaningful incentives for solar power. For instance …
Solar Performance Payments and Rebates in South Dakota
South Dakota lacks any performance payments or utility rebates for solar power. If the RPS set mandatory levels of renewable energy production, we can guarantee the utility companies would offer incentives to help you make the switch to solar. How do we know? It’s worked everywhere that a real RPS has been implemented!
South Dakota Solar Tax Credits
The legislature isn’t picking up the slack either; there are no tax credits for installing a solar power system here.
South Dakota Solar Tax Exemptions
While you won’t save money on your state income taxes, you will save bags and bags of cash with South Dakota’s property tax exemption. All solar power systems less than 5 megawatts (all but the very largest solar power systems), are assessed in the same manner as a conventional energy system (even though the solar power system is actually worth significantly more because of long-term savings on your electric bill). That’s what we’re used to seeing in a property tax exemption. South Dakota then takes it one dramatic step farther: The first $50,000 or 70% of the assessed value of the property used for producing solar power (i.e., your home), whichever is greater, is exempt from property taxes for four years. That may well be the strongest property tax exemption we’ve seen in the country.
It may seem like nit-picking given the thousands the property tax exemption is going to save you, but we’d like to see lawmakers add a sales tax exemption as well. Especially because the lack of utility rebates, that 4-6% a sales tax exemption would save you can really add up, typically to savings of more than $1,000 on the typical residential solar power system.
Utility Prices in South Dakota
South Dakota pays an average of 10.47 cents per kilowatt-hour (“kwh”) of electricity, almost a full cent below the national average of 11.43 cents/kwh. We know you like lower bills now, but here at SPR we actually think electricity is far too cheap. That’s right, too cheap! Electricity prices are kept low by burning millions and millions of tons of earth-killing fossil fuels. When the environmental costs of burning all that oil and coal really start to take their toll, we’re going to pay for all of the cheap electricity in ways much more important than monthly bills (though monthly electricity bills will inevitably rise as well …) Of course, you’ll be looking like a genius to all your friends, because you made the early switch to producing your own cheap, reliable solar power!
South Dakota Net Metering and Interconnection
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for any surplus. South Dakota currently lacks any statewide regulations governing net metering, or (more importantly) ensuring that utilities offer net metering in the first place.
Curiously for a state without standard net metering South Dakota does have statewide interconnection standards governing how you get tied onto the grid. The standards are solid overall, adopting the same 4-tiered system we’ve seen in other states. There is, of course, always room for improvement. First we’d like to see requirements for a redundant external disconnect switch prohibited. Currently that decision is left to the utility. We’d also like to see insurance requirements eliminated for residential systems. Currently a tier 1 system (those under 10 kw, which covers most residential systems) require only “proof of adequate homeowners, general liability or commercial liability insurance sufficient to insure against all reasonably foreseeable direct liabilities given the size of the small generator facility.” While that requirement is certainly less onerous than others we’ve seen, we think that any insurance requirement is unnecessarily constraining on small systems and their very low risk of accident or injury.
5kW Example Return on Investment in South Dakota
Installing a typical 5kW solar system should start at about $25,000. Don’t worry – even without state incentives, you can still knock a big chunk off the price.
- Since the feds calculate their incentive based on actual out of pocket costs, no state incentives means a bigger federal tax credit. Subtract $7,500 (30% of $25,000) for a new price of $17,500.
- After the tax credit we subtract your first year’s energy savings, which we estimate to be about $694. That brings your cost after the first year to $16,806.
- With a conservative estimate for the future rise of electricity prices, you can expect your new solar power system to pay for itself in about 16 years. Even with that somewhat slower payback time frame, you can still expect to get about 9 years of profits (yes, profits) out of your solar power system. We estimate those profits to be $16,708 through 2036.
- In addition to those direct wallet-fattening savings, you also increased your home value by $13,883; and don’t forget about those property tax benefits we talked about above!
- In addition to all that cash (and home value), you’ve created some green for the earth as well by not using all that fossil-fuel backed electricity. In fact, the fossil-fuel energy you’re not using is the carbon-saving equivalent of planting 117 trees a year, every year your solar power system is humming.
These numbers are estimates. Your home is unique and how much power you generate and how much money you save depends on that uniqueness. The best way to find out how much cash switching to solar can save you is to get one of our free quotes, and an expert installer in your area can draw up a home-specific estimate for you. Your quote is 100% free (yes, that’s right, 100% free) and you can get as many of them as that smart shopper in you desires!
South Dakota Solar Consensus
Despite our reputation for cold weather, we actually get a lot of sun here. As much as most parts of Florida in fact. Unfortunately that tremendous solar power potential is being squandered. The lack of state or utility backed incentives is keeping costs high (compared to solar-friendly states) for homeowners like you to make the switch, and keeping payback time frames slow. Even without any incentives, solar power is an excellent investment, but the legislature should be harnessing our natural solar resources to help bring down initial costs. That property tax exemption is tremendous, but without any mandatory renewables standards, or any state incentives in place, we can’t give South Dakota anything but an “F” at the moment.
I am sending this to my address so I can have a copy of this page.
Solar Energy will be the Energy of the future for homes and to recharge our electric cars and trains. SOLAR ENERGY is the fastest growing marketed goods on the Planet Earth. Freedom from the Power Grid and the Oil CEOs.
The Lord’s Little Helper
Paul Felix Schott
The ‘CONSENSUS’ for your state may be different from another state. How much carbon emissions do solar panels produce to install? Well, it depends on where they are manufactured. Also, do you think the panels that are currently manufactured can withstand a south dakota wind for 20 years?? And how many birds do you want to kill by putting up a wind generator? Or, you could let the farms of South Dakota produce their own form of energy from the same sun.
Certainly, Ron, the consensus is going to differ from state to state. As for the carbon emissions of solar panels (the manufacturing “carbon foot print” a report by the National Renewable Energy Laboratory (NREL) last year put out a report about solar’s carbon footprint. It adds up to 1 to 4 years, depending on the technology and the local of the manufacturing, as you said. So at worst, 4 years, but keep in mind that solar panels last from 20 to 35 years (warrantied 20 to 25 years, but typically go longer) so solar panels way more than offset their manufacturing carbon foot print.
Thanks for commenting and bringing that question up.
Did you know South Dakota requires all state buildings to be LEED certified when built new or remodeled? That is a bid step forward. I just got back from Pierre, SD where they are installing 24kW of PV and 6kW of wind on a state building visible from the Capitol Building. I provided a bid for this work. Nebraska could take a lesson from a neighboring state that has less solar potential.
Small Business Innovation Grants and Department of Transportation: Small Business Innovation Research Program. I will build a Solar Electric Car Plant. To make
( Electric / Solar ) cars. The Plant will have its roof covered with Solar Panels (PV) Powered 30 to 50% of its power will come from the Sun, and 20 to 30 % from the wind. The Plant will make Solar / Electric Cars for anyone and will market it to everyone. We Will sell Solar Panels to cover their roofs of their homes, carports and workplaces to recharge their new Solar / Electric Car. ( All Wheel Drive )
This high quality scientific ( Solar / Elictric Car ) engineered by Rocket Scientist, Electrical Engineers and Automotive Engineers will put Science, Engineering Education and Research of Green Technology to have a high potential economic payoff in New Jobs and Clean Transportation for All. That most will be able to recharge their cars at home or work.
And with a little help from ( UNCLE SAM / The United States Government ) and a prayer All will be able to recharge at all are schools that will start to have Solar Covered Parking for Electric or Solar Cars.
We are not building a car to win awards although it most likely will. Development technologlies will be serious engineered to the Working Class People. To make a significant change in the cost to drive. Costing thousands less. Making this car ( Solar Do Work ) The Most Cost – Efficient to Drive. On Planet Earth.
100% Built In
The United States of America
United We Stand In GOD We Trust.
If you can help I would be Grateful.
come join my team.
It will be amazingly rewarding.
putting Americans back to work.
The Lord’s Little Helper
Paul Felix Schott
Solar Do Work
solardowork@yahoo.com
Assuming the panels can last 30 years in my South Dakota climate. I will spend $54,000 on a $100,000 home which will improve my homes value by 10,000. It could ,but not guaranteed to, save me $20,000 in utilities, but I will have to absorb the cost of over $20,000 over the next 30 years, which doing the math means I will lose 40% of my assets spent on the project. This sounds squanderous. Solar technologies are still being refined, as they have been over the last half century. It has taken the auto industry an entire century to be this refined and people are expecting solar to become this overnight… The only truly viable solar solution at this point in time is for the Energy Industry or large Corporate Businesses to implement solar sources, which they have been for over 2 decades. Since the Energy Industry makes its living off of energy, they ensure their efforts are not wasted while producing a solar project. The same factors cannot always be ensured in a home setting. A newly constructed home would be able to improve such factors more then most existing homes. Solar industry is growing, and more rapidly than before, because it is finally getting close to being efficient. In the very near future solar energy may finally be truly viable to the common consumer, not just the rich and extravagant. Lastly if you want to help reduce greenhouse gases, change to diesel automobiles immediately , a proven efficient reduction while waiting for the electric car, solar, and wind industries to catch up.
Ryan
I’m planning to move to South Dakota from Hawai’i, and have purchased a 40-year old refurbished home in Hot Springs. I would like to consider solar panels for it if the cost is not prohibitive, but I’m worried about damage from hailstorms, wind, and snow. Can anyone please comment on those issues?
Ryan,
Solar Energy is the fastest growing Industry in the World and has more then Doubled last year alone. Home owners World Wide are covering there roofs. Solar Energy is not just for Industry or large Corporate Businesses and as you say the rich and extravagant.
Cities and Governments all over Earth are covering there building carports at train stations and work places. The rate of return for Solar Panels is good you do not lose 40% and the Industry Leading Warranty is at 25 Years. Most spend more then that on cars in that time.
Solar Energy is Environmentally Friendly and Very Efficient. Soon Electric Vehicles will outnumber those that need oil to drive down a highway or road. Electric cars and Vehicles will be Recharging from Solar, Wind and Renewable Energy. Happy to say in a very short time the need for black gold OIL will come to a end for most.
Our Homes will get Energy from the Sun and wind and charge Batteries or to be used to split ground water into Hydrogen and Oxygen gases. Then put into tanks in the carport or yard and a Hydrogen Generator will produce energy similar to a gas, oil or diesel generator when needed. Like at Night or when there is no wind or sunlight.
The United States, Germany and China all have for years worked on a Hydrogen Electric Vehicles. Knowing Solar Energy will make them affordable. i have driven them all.
Eloise,
Leaving a place that seams like paradise Hawaii would be a better place to get more out of a Solar Energy Systems. You are closer to the sun in Hawaii, i have a home there and it will soon run totally on Solar Energy. The Roof pitch used to identify the slope or steepness by roofing contractors, architects and other building professionals and the way the roof faces North, South, East or West is going to be the two biggest factors to the output of a Solar Energy Systems. The Slop or Pitch will Determine the snow part. The rest if you call or e mail one of the many Solar Energy Business in the United States i am sure they will be more then happy to help or work with you. Or go to one of the Government sites or Centers like…
Information on the Renewable Energy and energy efficiency research, education, training, and certification activities at the Florida Solar Energy Center, FSEC.
My Good Noble friend Bill Young is the Senior Research Engineer for Photovoltaics at FSEC and in my eyes one of the best Solar Energy Scientist in the World truly a blessing to have worked for years with Mr. William Young the Goodwill Ambassador for Solar Energy.
The Lord’s Little Helper
Paul Felix Schott
solardowork@yahoo.com
Solar Energy is a great source of energy and can really work well with a hybrid system that includes wind. To Ron, I have been working on and around wind turbines for two years now and have yet to see a dead bird lying anywhere.
Sam many of the farms that i fly over in the United States do just that they have their roofs covered with solar and the fields full of Wind Turbines. The United States of America is second in the World in Wind Power only to China. At one time we were first. Just off of State Route 62 in the San Jacinto Mountains is a Large Wind Farm in California. If you do not have a aircraft you would have to hike quite a way to see it. Flying over the State of Minnesota there are 100s of them and if you drive I-90 across the state you will see them everywhere. King Mt. in Texas and the western part of the State there are 2,000 wind turbines.
The Growth of Renewable Energy in the USA is at more then 45% for more then eight years in a row. Solar and wind Farms are growing all over the Planet. Very soon most homes on Earth will have Solar Panels on them as the cost of them drop more. Making Solar Energy the People’s Choice of Clean Energy, and that they can not be taxed for Free Energy From the SUN. In the Pacific Ocean Islands many do have hybrid systems of Wind and Solar.
Solar Energy and Solar Farms are growing at a faster pace then all other forms of Energy on Earth.
South Dakota is a little slow to coming on board to Renewable Energy i do think Lord willing that will change very soon.
May GOD Bless All that add to the good of Solar and Wind Energy.
The Lord’s Little Helper
Paul Felix Schott
solardowork@yahoo.com
News From the Pentagon Clean Fuel Energy From the Sun July 19, 2011
In Hawaii The Department of Defense will start to cover its Military Family Housing with Solar Energy. This will greatly help stop the need for Oil in the Hawaii Islands. This is just the start to the D.O.D. reducing its 4 billion dollar need for Dirty Energy. From now on the D.O.D. will look to Renewable Energy, Clean Energy. The Hawaiian Islands will see the Largest Solar covered homes and housing Roofs in the World 6,000 units. Thanks to William Lynn Deputy Secretary of the Defense and Steven Chu Secretary of Energy and to many others. The D.O.D. has some 300,000 building the day will come when all will be powered by Clean Energy. i can not thank all that made this happen enough.
GOD Bless
United We Stand In GOD We Will Always Trust
Story By
The Lord’s Little Helper
Paul Felix Schott
With college graduation on the horizon and the looming image of mortgage payments continuing to creep nearer, where would be a state, besides California, to consider purchasing a house with solar energy in mind? With the luxury of youth and ability to relocate, what states provide the most bang for your buck? In other words, if I had say $300,000 to purchase a home and also install a PV system where would I be able to get the largest square footage, which is completely run by solar power—off the grid?
I disagree with the statement of all going to diesel powered vehicals due to the black smoke emiited from the exhaust pipe, also they stink to high heavens, and the motor running is loud and obnoxious to surrounding motorists with their windows down enjoying the fresh air. I myself have gone to propane which is clean burning,better for your engine, and also 1.50 per gallon cheaper than gasoline. unfortanatly solar is too expensive for a homeowner to use and save $