2025 Solar Incentives Guide for Brookings, SD - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Brookings.

You'll learn about:

  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2024 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Brookings solar installers to see how much you can save.

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated January 24, 2025

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We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

What Solar Tax Credits, Incentives, and Rebates are Available in Brookings?

Renewable Energy System Exemption

Incentive Type:
Property Tax Incentive
$50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt

Otter Tail Power Company - Residential and Commercial Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Air-Source Heat Pump: $250/ton
Cold-Climate Heat Pump: $500 - $700
Geothermal Heat Pump: $900/ton
Heaters/Boilers/Furnaces: $500 per unit up to 20 kW, $25/kw on units 21 kW or larger
Lighting: Varies
Residential Thermal Storage Unit: $50/kW
Residential Water Heaters: up to $400

Federal Residential Renewable Energy Tax Credit

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


Solar incentives are meant to encourage homeowners to switch to renewable energy by providing incentives meant to lower the financial burden of solar panel installation and use. Different kinds of incentives, like cash back, discounts or credit towards your monthly utility bill, might be available to you. Certain incentives may be offered by the state of South Dakota, by your utility company or by county or municipality, while others are federal. You might qualify for any of the following types of solar incentives:

  • Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government. (This is different from a tax deduction.)
  • Net Metering: Net metering becomes relevant once your solar panels are up and running. If you have a net metering agreement with your Brookings utility company, it will subtract the value of the excess energy your solar system produces from your utility bill each month. In some locations, this is a dollar-for-dollar credit, while in other areas you might get refunded a percentage of the value.
  • Tax Exemptions: Sales tax exemptions are effective at the time of purchase for your solar panels. Property tax exemptions allow you to exclude the value added by your solar system when you're calculating the amount of property tax you need to pay.
  • Rebates: Some solar companies will help you claim a rebate, or partial refund of your purchase, for your solar system. Counties or states will also sometimes offer limited-time rebates. Any rebates you receive will usually be deducted from the total price before tax credits are calculated.
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Federal Solar Incentives

When people think of solar incentives, federal incentives are likely the first thing that comes to mind. The Federal Solar Investment Tax Credit, or ITC, is the best-known federal solar incentive. The ITC provides you with a tax credit for a set percentage of your solar system's cost.

The ITC can be applied to a solar system installed on your primary or secondary residence in the United States. The solar system must have been installed on a property you own after January 1, 2006, for you to claim the credit. The ITC originally paid out 30% of all system installation costs (panels, equipment, accessories and labor), although the total amount has fluctuated slightly over time between 26-30%. The amount you qualify for will depend on when your solar system was installed. There is no cap on the amount you can claim.

Your local Brookings solar panel installer can offer more information about the ITC and how it might apply to your situation.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was bolstered by the passage of the Inflation Reduction Act. The new Clean Energy Credit now runs until 2035. American homeowners can now receive a 30% credit for solar systems that began installation on or after January 1, 2022, and will be done by December 31, 2032. The total credit will then decrease annually until the date of expiration. Starting in 2023, the expansion to the program will also make claiming credit for energy storage systems easier than ever before.

More information about the new Inflation Reduction Act can be found here. To understand how the new Clean Energy Credit will apply to you, speak with your local Brookings solar installation company.

State & Local Solar Incentives

Tax credits, rebates and more might be provided at multiple levels. In addition to federal solar incentives, there are often state and local ones as well. These incentives may be given out by your county or municipality, or by the South Dakota government. Some incentives may be available for a limited time, while others are ongoing.

Next Steps for Installing Solar in Brookings

You can apply for and receive solar incentives from the South Dakota government and the federal government, as well as from your local utility company. The increased availability of solar initiatives over the last 15 years has helped increase solar adoption nationwide. We suggest talking to your local Brookings solar installation expert for more information about these incentives and to ensure that you're getting the most money possible for your solar panels.

EcoWatch's Brookings, SD Solar Incentives FAQs

My home already has solar panels installed. Does my system qualify for any incentives?

If your solar system was installed after January 1, 2022, you may qualify for the recently increased 30% tax credit under the Inflation Reduction Act. If your system was installed between 2006 and 2021, you might qualify for a tax credit between 26% and 30%, depending on the exact installation date. Reaching out to the company that installed your system, or any local Brookings solar installer, can help you understand what incentives you might want to apply for.

How much can I save on my electric bill annually if I add solar panels to my Brookings home?

When you add solar panels to your home in Brookings, you can expect to save approximately $799.50 per year, or approximately $15,989.97 over 20 years.

Who installs solar panels near me?

To find the top solar panel installation companies near you, read our article on the top solar companies in Brookings.

What are the environmental benefits of switching to solar energy?

You can lower your carbon footprint by 50 pounds of CO2 a year when you install solar panels. This adds up to approximately 1,000 pounds in 20 years. Solar is also a renewable energy source, which means that making the switch reduces the drain on our planet's resources.

If I switch my appliances out for ones that use solar energy, are there any benefits I can claim?

The new Inflation Reduction Act provides a number of incentives that reward homeowners for making eco-friendly upgrades. Some incentives include tax credits and rebates for installing new electric appliances. You can find more details about these incentives here.

Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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