Solar Panel Cost Guide in Sioux Falls, SD (2023 Update)
- Sioux Falls Solar Installation Cost: $14,778
- 25-Year Savings: $24,151
- Payback Period: 9.5 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Sioux Falls
Let's have a look at the average cost of solar in Sioux Falls.
The national average cost of solar panels is $2.66 per watt, but in Sioux Falls it's 2.39 per watt. To cover the typical energy usage of the average home in Sioux Falls, most homeowners require a 8.8-kilowatt system. Using the per-watt figure above, a solar installation costs about $14,773, or $21,125 before the federal solar tax credit of 30% is applied.
Bear in mind that the figures above are only estimates based on the average energy use of Sioux Falls homeowners. The cost of a solar system for your home may be different depending on factors unique to your situation, like your household energy use and solar contractor. For most homeowners, the upfront cost of solar is worth paying. On average you could be looking at about $17,000 in savings on energy bills over 20 years.
For a customized quote from a local solar installer that has been pre-vetted by EcoWatch, click the button below.
Solar savings over time in Sioux Falls
| Year | Return on Investment |
|---|---|
| 1 years | $-13,324 |
| 3 years | $-10,414 |
| 5 years | $-7,505 |
| 7 years | $-4,596 |
| 9 years | $-1,687 |
| 11 years | $1,222 |
| 13 years | $4,132 |
| 15 years | $7,041 |
| 17 years | $9,950 |
| 19 years | $12,859 |
| 21 years | $15,768 |
| 23 years | $18,678 |
| 25 years | $21,587 |
Top Solar Installers in Sioux Falls
When switching to solar energy, many homeowners decide to go with a solar installation company since putting up solar panels yourself can be a challenging project. The payback period on a solar system will vary depending on factors like your location and energy needs, but going with a solar installer can help you reach a break-even point sooner. Your provider will be able to help you get the most out of incentives available in your area.
There are various licensed solar professionals that can take care of your solar installation project. Here are our suggestions:
Best Technology
Tesla Energy
- 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
Though the average cost of a solar system in Sioux Falls is $14,773, your actual cost may be higher or lower than that. There are quite a few factors that can have a sizable impact on the cost of a solar panel installation. Below are some of the more important things to take into consideration.
Solar Equipment
The size of the solar panel system you need, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by nearly $2,390. There are many different solar panel brands and the one you choose also changes the cost. Generally, the brands that offer higher efficiency tend to also be more expensive. Additionally, the type of equipment you're looking to get can affect your total cost. If you only need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Many homeowners find the average cost of solar in Sioux Falls to be prohibitively steep, even if the investment pays off over time. Thankfully, nearly every solar company in the area provides financing options. Solar loans drastically decrease upfront costs for most homeowners, but they also lead to paying more over time due to interest. However, the interest on solar loans also adds to your overall costs, so it's important to consider that as well. You can always reduce the total you pay in interest and sometimes even your APR by making a larger down payment.
Solar Panel Installation Company
The solar installer you hire to handle your switch to solar energy can play a part in your total costs. There are about 3 solar panel companies operating throughout Sioux Falls, and each can charge different amounts for labor and equipment. The size of the company can sometimes play the most considerable role in your costs. Larger national companies, like SunPro and Sunrun, often have lower pricing due to access to more resources and better pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or promotion can bring their pricing down to compete with bigger names.
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 |
How to Save on Solar Panels
The solar installer you go with will impact not only your overall costs, but also the types of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are several important things you should consider, including:
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for clean energy professionals. If your solar panel installer is NABCEP-certified, it most likely has a good reputation and is qualified to get the job done well. Another way you can verify your installer's reputation is by reading reviews.
- Solar Panel Brands: Different companies will have different brands and kinds of panels. If you prefer a specific brand, make sure the solar panel installer you're considering has it.
- Warranty: If you care about the longevity of your solar panel system, ensuring your company offers a 25-year, all-inclusive warranty can help put you at ease.
- Contract: Read the contract terms thoroughly to make sure you understand the cost breakdown, completion timeline incentives and warranties.
Best Technology
Tesla Energy
- 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 difficult question to answer exactly, 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. It will be more expensive if you want extra solar equipment or more efficient panels, or if you have above-average energy needs. On the flip side, you can spend less if you choose a smaller solar panel system or cheaper solar panels.
Is it better to lease or buy solar panels in Sioux Falls?
Leasing solar panels can be an appealing choice, as it often comes with low or $0 upfront payments. The drawback is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any tax rebates and credits and your home value won't increase. Buying solar panels is a better way to go if you want to get the most savings.
Does Sioux Falls have a net metering program?
Most states have net metering programs of some kind. Through these, you can be compensated for the extra power your system generates or or receive credits to put toward future electricity bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
How long do solar panels last in Sioux Falls?
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.