As a leading solar analyst, I‘ve crunched the numbers to provide South Dakota homeowners a comprehensive resource for evaluating whether solar panels can save them money over time. With high-quality sunlight available statewide, many households could benefit – yet market challenges remain.
This guide arms you with all the key solar statistics, financial projections, and recommended steps so you can make the most informed decision for your home. I‘ll be with you every step of the way explaining and simplifying the solar process along the journey. Let‘s dive in!
Solar in South Dakota – Quick Facts
Before analyzing solar costs and savings potential, let‘s overview the key stats defining South Dakota‘s solar landscape:
- Just 3MW of solar capacity installed statewide – last in US
- Still receives 5.23 peak daily sun hours on average
- Avg solar panel system cost = $2.39/Watt = $14,340 for 6kW
- Electricity rate = 10.7¢ per kWh (below national avg)
- Payback period around 7-9 years
With abundant solar resources combined with affordably priced systems, many households could benefit financially. Next I‘ll break down exactly how much array sizes, electricity savings, and payback periods differ depending on your location and electricity usage.
Detailed Component Cost Breakdown
As a prospective solar shopper, understanding precisely what goes into your overall system price empowers you to budget and set expectations accurately. Here I‘ll outline the specific equipment and costs comprising residential solar installations.
Solar Panels
Makes up 50-60% of total price; modern panels last 25+ years
- Cost = $1.40 per Watt on average
- 260W panels used often for good efficiency
- Includes 25-year power production warranty
Inverter
Converts solar panel DC output into usable AC power
- Cost = $0.55 per Watt on average
- Sized to your system‘s total wattage
- Includes 10-12 year manufacturer warranty
Racking
Aluminum framing secures panels to the roof
- Cost = $0.60 per Watt
- Anodized for weather/corrosion resistance
- Flashings prevent leaks; lag bolts anchor to rafters
Wiring, clamps, connectors = $0.25 per Watt
Permits, inspection, labor = $0.60 per Watt
Total Turnkey Price = $2.39 per Watt
This covers every component and service needed to get panels generating emissions-free, utility bill-reducing power on your roof for decades. Next let‘s explore how electricity savings and payback periods vary across the state.
Solar Payback and Breakeven Analysis by Location
As a solar shopper, what you most want to know is – when will my system pay for itself through electricity savings? Since solar panel production depends on sun exposure, payback periods differ across South Dakota depending on city:
City | Sun Hours | Years to Payback
—|—|—|—
Rapid City | 6.0 | 6.2
Aberdeen | 5.5 | 6.8
Watertown | 5.3 | 7.1
Sioux Falls | 4.8 | 7.9
With solar production directly proportional to sun hours in each area, western cities like Rapid City break even over a year faster. But all locations can recoup the system cost in a reasonable timeframe.
To determine your home‘s precise payback period, divide your annual energy bill by the projected solar output:
Annual Bill / (System Size in kW x Sun Hours x 0.9)
As an example, take a 5kW system size, and $1,500 annual bill in Sioux Falls receiving 4.8 sun hours.
$1,500 / (5kW x 4.8 hrs x 0.9) = 7.4 year payback
This home would save $1,350 per year, adding up to $27,000 in savings over 20 years!
Conclusion: Key Takeaways for South Dakotans
I aimed to provide a comprehensive statistical and financial analysis empowering you to evaluate solar‘s earning potential tailored to your location and household energy usage here in South Dakota. The key takeaways:
- Solar panels can cashflow well despite no state incentives
- Carefully compare installer bids using the cost data provided
- Payback timeframe varies by city/town based on sun hours
- 20-year solar savings easily exceed $20,000 statewide
I‘m happy to answer any other questions arising as you move forward on your solar fact-finding and research mission! Feel free to reach out by email anytime.
Best Regards,
[Your name]
Solar Analyst
