South Dakota Net Metering Rates 2026
South Dakota solar exports are credited under avoided-cost buyback, worth roughly ~25–50% of retailof the retail electricity rate. Here's exactly how it works, which utilities offer it, and what it means for your payback.
How Net Metering Works in South Dakota
When your panels produce more electricity than your home is using, the surplus flows back onto the grid and your meter records the export. South Dakota utilities credit those exported kilowatt-hours at the utility's wholesale avoided-cost rate, well below retail. You draw that credit back down at night or on cloudy days, so you only pay for your net consumption across the billing cycle.
Because South Dakota mandates net metering, a correctly sized system can push net annual electricity costs close to zero for many SD homeowners.
What It's Worth: ~25–50% of retail of Retail
The single biggest driver of solar payback is how much your utility pays for exported energy. South Dakota's avoided-cost crediting pays well below retail, which lengthens payback and makes self-consumption (and batteries) more important.
The average SD homeowner reaches payback in 10.7 years and nets $24,300 over 25 years with these rules in effect.
South Dakota Utilities Offering Net Metering
The major utilities operating in South Dakota are Xcel Energy, Black Hills, NorthWestern. Net metering terms — true-up dates, monthly fees, and credit carryover — vary by provider, so confirm the current tariff with your specific utility before signing an installation contract.
South Dakota Net Metering FAQ
What will net metering save you in South Dakota?
Our calculator factors South Dakota's avoided-cost buyback into your payback and 25-year savings — using your actual electric bill.