Avoided Cost

Net Metering in South Dakota

Current NEM policy, export rates, and impact on solar payback for South Dakota homeowners.

NEM Export Rate

$0.045

per kWh

Avg Retail Rate

$0.112

per kWh

% of Retail

40%

compensation

Policy Status

Active

since 2010-01

System Limit

Varies by utility

max eligible

NEM Policy Details — South Dakota

How South Dakota compensates your excess solar generation

Avoided CostActive

No statewide net metering mandate. Utilities offer avoided cost buyback. Very limited export compensation. Self-consumption strategy required.

NEM Rate$0.045/kWh
Retail Rate$0.112/kWh
Savings Gap-6.7c/kWh
Annual True-UpYes

Source: South Dakota PUC, DSIRE · Effective: 2010-01

Calculate Your NEM Savings in South Dakota

$

NEM Rate Comparison

$0.00South Dakota: $0.045$0.112 (retail)

South Dakota's NEM rate is 40% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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Written & reviewed by

Jeremy Wolfe — Senior Solar Energy Analyst

Jeremy Wolfe is a solar energy analyst specializing in residential photovoltaic economics, federal and state incentive policy, and return-on-investment modeling for homeowners. He leads EnergyTools' solar research program and methodology.

  • 10+ years analyzing residential solar economics and payback modeling
  • Lead researcher for EnergyTools' 50-state solar cost-per-watt database
  • Author of 100+ solar ROI, payback, and incentive analyses

Methodology & data sources:NREL PVWatts, EPA FuelEconomy.gov, state utility commissions— updated 2026.