Despite abundant sunshine and sprawling open terrains, South Dakota’s solar power potential remains largely untapped. The state ranks a dismal 47th nationally for installed solar capacity, with a measly 270 MW powering just 32,636 homes. That’s right—only 1.87% of the state’s electricity comes from solar. Pretty pathetic for a place with sunshine hours comparable to regions crushing the solar game.
South Dakota sits on a solar goldmine but can’t be bothered to dig—just 1.87% of its electricity comes from abundant sunshine.
The numbers don’t lie. South Dakota sat at a laughable 0.01% solar generation in 2016. Progress? Sure, but at a snail’s pace. One major solar farm before 2024? Come on. At least the Wild Springs Solar project near Rapid City finally added some respectable capacity last year. Better late than never, folks.
Financially, the picture isn’t so gloomy. Homeowners dropping about $31,438 (after federal tax credits) on a typical 16.09 kW system can expect to save around $28,006 over its lifetime. The payback period? Twelve years. Not terrible considering South Dakotans enjoy electricity rates of 13.23 cents per kilowatt-hour—below the national average. A typical solar investment in the state will pay for itself in 9.8 years according to latest calculations.
Recent years have seen a spark of interest. Federal tax credits and clean energy mandates triggered a 42% increase in installed solar capacity over the last decade. The state’s largest solar facility, Wild Springs Solar, now offsets 190,000 metric tons of CO2 emissions annually. Total investment stands at $325 million, with projections showing another 90 MW coming online within five years. South Dakota could learn from the Philippines’ approach to solar deployment, where their Green Energy Auction is transforming their renewable landscape significantly.
Still, the state is expected to remain dead last (51st) for projected growth. Ouch.
What’s the holdup? State policymakers haven’t prioritized solar like they have wind energy. Most incentives come from federal programs, not state initiatives. Local opposition and zoning issues create roadblocks too.
The potential payoff is twofold: economic and environmental. Solar investments create jobs—11 companies already operate in the state’s solar sector. Plus, reduced carbon footprints mean cleaner air and greater energy independence. South Dakota’s sunshine gold is there for the taking. Someone just needs to grab a shovel.
References
- https://www.sdnewswatch.org/south-dakota-solar-power-wind-renewable-energy-electricity/
- https://cleaneconomytracker.org/wp-content/uploads/2025/07/2025-06-03_South-Dakota-Fact-Sheet.pdf
- https://www.energysage.com/local-data/solar/sd/
- https://www.ecowatch.com/solar/worth-it/sd
- https://seia.org/state-solar-policy/south-dakota-solar/
