Solar Panel Cost Guide in Sioux Falls, SD (Oct 2022)

  • Sioux Falls Solar Installation Cost: $14,773
  • 25-Year Savings: $24,157
  • Payback Period: 9.5 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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Average Cost of Solar Panels in Sioux Falls

Find out what the average cost of a solar system is in Sioux Falls.

The average cost of a solar system in Sioux Falls is $2 per watt. Using this figure, a typical 8.8 would cost about $14,773 before the 30% federal solar tax credit is applied.

These figures are only averages, and the cost of going solar for you will differ based on factors unique to your home and what company you choose to go with. But, after you've paid the initial cost of installation, the return on investment for most homeowners is usually good, with a net average savings of about $17,000 over 20 years on energy bills.

Click the button below to get connected to a highly rated solar panel company in your area for a custom estimate.

Solar savings over time in Sioux Falls

Year Return on Investment
1 years $-13,215
3 years $-10,101
5 years $-6,987
7 years $-3,872
9 years $-758
11 years $2,356
13 years $5,471
15 years $8,585
17 years $11,699
19 years $14,814
21 years $17,928
23 years $21,043
25 years $24,157

Top Solar Installers in Sioux Falls

When switching to solar energy, many homeowners decide to go with a solar installer since installing solar panels yourself can be a challenging project. Solar installers offer key benefits that can help you get the most out of your investment, like warranties, monitoring and free repairs.

There are a number of licensed solar professionals that can help you install your solar system. Here are our suggestions:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Technology

The Green Panel

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

See all of the solar companies in Sioux Falls

Factors that Affect Solar Panel Costs in Sioux Falls

Although the average cost of solar panels in Sioux Falls is $14,773, your final cost may be above or below the average. There are quite a few factors that can have a major impact on the cost of a solar system installation. Below are some of the more crucial things to take into consideration.

Solar Equipment Size

When it comes to estimating the price of a solar system in Sioux Falls, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are primarily based on your home's energy consumption, which you can figure out by looking at past energy bills. Your total cost can increase by about $2,390 for each additional kilowatt you need. The kind of solar panels and equipment you get is another factor that will greatly impact costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to be more pricey. Moreover, solar equipment goes beyond just the solar panels themselves. You'll also need to make decisions about the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when looking into a solar system that's in your budget.

Solar Financing Terms

For some homeowners, paying for solar panels out of pocket can be financially overwhelming. Solar loans are available from most installers in Sioux Falls, which can reduce, or in some cases completely eliminate, your upfront costs to make solar more affordable. When figuring out your overall cost, you should also calculate the interest you'll pay if you go with a solar loan. Also, paying a higher down payment can reduce the total interest paid over time.

Solar Panel Installation Company

Finally, the company you choose to install your solar panels can affect how much it costs. Sioux Falls' solar companies all have different labor costs and add varying upcharges to equipment. The size of the company can sometimes play the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices due to access to greater resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or discount can bring their pricing lower to compete with bigger companies.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $2.49 $10,440 $16,003 9.9 years
8 kW $2.44 $13,652 $21,605 9.7 years
10 kW $2.39 $16,730 $27,341 9.5 years
12 kW $2.34 $19,674 $33,211 9.3 years
14 kW $2.29 $22,485 $39,214 9.1 years
16 kW $2.25 $25,162 $45,351 8.9 years
18 kW $2.20 $27,705 $51,623 8.7 years
20 kW $2.15 $30,114 $58,028 8.5 years

Solar Incentives in Sioux Falls

Name Renewable Energy System Exemption
More Info Click here

Name Southeastern Electric - Residential Energy Efficiency Rebate Program
Website Visit here
More Info Click here

Name Southeastern Electric Cooperative - Electric Equipment Loan Program
Website Visit here
More Info Click here

Name Residential Renewable Energy Tax Credit
Website Visit here
More Info Click here

How to Save on Solar Panels

Since the type of solar panels and the installer you choose considerably influences your costs and your system's efficiency, production, and durability, it's important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:

  • Solar Panel Brands: Different companies have different brands and kinds of panels. If you know you want a specific brand, make sure the solar installer you're considering has it.
  • Contract: When looking through your solar company's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios such as a system component breaking or if the company goes out of business.
  • Installation Process: Get detailed information from your solar company about the installation process and what to expect, including when the site survey will be completed and how long it will take.
  • Reputation: Your solar installer should have a sound reputation as a company and have demonstrated expertise in the field. A couple of ways to check this are to look for whether a company has technicians that hold a certification from the North American Board of Certified Energy Practitioners (NABCEP) and if it has satisfied reviews from previous customers.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Technology

The Green Panel

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

EcoWatch's Sioux Falls, SD Solar Cost FAQs

How much does it cost to install solar panels in Sioux Falls?

This is a tough question to answer precisely, because the cost depends on a few different factors. Generally speaking, it costs about $11,950 for a 5-kW system and $23,900 for a 10-kW system after the ITC is applied. You can expect to pay more if you want extra solar equipment or higher quality panels, or if you have higher-than-average energy consumption. On the other hand, you can spend less if you opt for a smaller solar panel system or less expensive solar panels.

Can you get solar panels for free in Sioux Falls?

A solar panel system isn't free in Sioux Falls, but there are some options that can make getting them more feasible, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can help lower the cost.

Is switching to solar power worth it?

Whether or not solar panels are worth it depends on some different factors like how much you pay for electricity and the amount of direct sunlight your roof gets.

How often do you have to replace solar panels?

Even though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they stop working completely at that time. What this means is how much energy they produce will have decreased significantly after that point. You can decide to replace them after having them for that long or you can keep using them at a lower efficiency.

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.

Company 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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