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South Dakota


An arrow graphic shows that South Dakota’s voluntary renewable energy goal is set at 10% in 2015.

Carve-out: None
Tracking system: Western Renewable Energy Generation Information System (WREGIS)

South Dakota had set a goal for 10% of retail electricity sales to come from energy conservation and renewable and recycled energy by 2015. Both in-state and out-of-state renewable energy certificates (RECs) qualified towards the goal.

South Dakota does not have net metering or community solar policies to support midmarket solar. It does have distributed generation interconnection standards that offer expedited interconnection for midscale solar. It had a voluntary renewable energy goal and established REC tracking and verification rules. According to the Public Utilities Commission, most utilities reached their goals by 2014.

Net Metering

South Dakota does not have a statewide net metering program.


South Dakota’s interconnection standards for small generators apply to all investor-owned utilities (IOUs) within the state.

Eligible Systems Type of Interconnection
Inverter-based systems ≤10 kW Tier 1: 15 business day review process
≤2 MW that do not qualify for Tier 1 Tier 2: 20 business day review process
Non-exporting systems ≤2 MW Tier 3: 20 business day review process
All other systems ≤10 MW Tier 4: Requires feasibility study and system impact study

System size limit: 10 MW

Liability insurance: Required for all systems, with levels varying by tier. Tiers 2 to 4 must include utility as additional insured

External disconnect switch: Utilities may require external disconnect switch to be installed

Third Party Ownership

The status of third party solar power purchase agreements is unclear in South Dakota.

Community Solar

There are currently no statewide community solar policies or programs in South Dakota. Utilities and developers may offer community solar programs.

State Incentive Programs

Program Administrator Incentive
Renewable Energy System Exemption South Dakota Department of Revenue and Regulation The first $50,000 or 70% of the assessed value of a property with renewable facilities <5 MW is exempt from real property tax.
Renewable Energy Facility Sales and Use Tax Reimbursement Governor’s Office of Economic Development Commercial, industrial, and agricultural customers and contractors are eligible to receive reinvestment payment up to 100% of sales and use tax paid for project. The cost must be more than $2 million. The incentive was designed for wind, but solar PV is also eligible.

Utility Incentive Programs

Check with local utilities for midscale solar photovoltaic incentives.


The list below provides some resources for each type of policy or program. Reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and interconnection

Programs and incentives