HomeSolar by city › Sioux Falls

Solar panels in Sioux Falls, SD

Roofs in Sioux Falls get about 1,507 hours of usable sunlight a year — less than 52% of the cities we've measured. Here's what that means in cost, savings and payback, using real rooftop data rather than a national average.

1,507Sun hours / yr
22Panels typical
$17,556Cost after credit
13.1 yrPayback
Be careful in Sioux Falls. At a 13.1-year payback, solar here is a long-horizon decision, mostly because electricity is relatively cheap (12.3¢/kWh). It can still make sense if rates rise or you have local incentives — but check the numbers hard before signing.

Check your specific roof in Sioux Falls → City averages are a starting point; your own roof's size, pitch and shading change the answer a lot.

What a typical Sioux Falls solar system costs

A 22-panel system (8.8 kW) is about right for an average Sioux Falls home using 10,800 kWh a year. It would produce roughly 11,272 kWh annually and offset 100% of that usage.

Estimated economics by system size in Sioux Falls, at 12.3¢/kWh after the 30% federal tax credit
SystemSizekWh/yr Net costSaves/yrPayback
8 panels3.2 kW 4,099$6,384 $504 12.7 yrs
12 panels4.8 kW 6,149$9,576 $756 12.7 yrs
16 panels6.4 kW 8,198$12,768 $1,008 12.7 yrs
20 panels8 kW 10,248$15,960 $1,260 12.7 yrs
26 panels10.4 kW 13,322$20,748 $1,406 14.8 yrs

Notice that payback barely improves as systems get bigger, and eventually gets worse. That's because you can only save money on electricity you were going to buy anyway. Once a system covers your usage, extra panels mostly generate exports at a much lower rate.

Why Sioux Falls gets 1,507 sun hours

That figure comes from Google's analysis of real rooftops across Sioux Falls — it already accounts for shading from trees, chimneys and neighbouring buildings, which is why it's lower than the raw "hours of daylight" figures you'll see elsewhere. An unusually open, unshaded roof in Sioux Falls reaches about 1,685 hours, roughly 12% better than typical.

The numbers behind this page

Typical usable sunlight1,507 hrs/yr
Unshaded roof1,685 hrs/yr
Electricity rate (South Dakota avg)12.3¢/kWh
Installed cost assumed$2.85/W
Panel size assumed400 W
Federal tax credit30%
Typical household usage10,800 kWh/yr
Power used as generated34%
Paid for exported powerfull retail (net metering)
Rooftops sampled here12
Google imagery from2023

Nearby cities

Sioux Falls solar questions

How many solar panels do I need in Sioux Falls?

About 22 panels for an average home. Sioux Falls roofs get 1,507 usable sun hours a year, so each 400W panel produces roughly 512 kWh annually.

Is solar worth it in Sioux Falls?

At 12.3¢/kWh and 1,507 sun hours, a typical system pays for itself in about 13.1 years and returns roughly $16,017 over 25 years. That is slower than the national average, so compare quotes carefully.

How much do solar panels cost in Sioux Falls?

A 8.8 kW system costs about $25,080 before incentives and $17,556 after the 30% federal tax credit. Prices vary by installer, roof complexity and equipment.

Worth reading before you buy

Estimates only, generated 2026-08-22 from Google Solar API rooftop samples and average South Dakota electricity rates. Not a quote and not financial advice. Your roof, usage, utility plan and local incentives will change these numbers — get real quotes before buying.