Famous for Mount Rushmore, great farmland, and the Sturgis biker rallies, South Dakota has unfortunately been lagging behind its neighbors in terms of promoting renewable energy. The current political atmosphere favors promoting biofuel and ethanol, which may be great for vehicles, but does not help homeowners much. If solar power is going to flourish in South Dakota, you may have to bring it to the attention of your state’s government. Remember to mention that South Dakota has a solar rating of “Good”, so your state would be an ideal place to watch clean energy grow.
Currently, no official net metering programs are in place in South Dakota, so if you have a solar energy system installed, you may want to contact your local utilities company to see if you can work out an arrangement with them. There are some sales and property tax exemptions available for wind power systems, but for fans of solar power, your only real incentive is the single tax incentive available for photovoltaic and solar heating systems. The increase in your property value from installing a photovoltaic system is tax-exempt, and you can save over $800 a year in utilities, so even with a scarcity of perks, most systems will pay for themselves within 30 years.
|Program Type||Property Tax Incentive|
|Technologies||Photovoltaic (Solar Panels), Solar Space Heating, Solar Water Heating, other renewable energy sources|
|Amount||Up to $50,000 or 70% of the assessed property value, whichever is greater|
|Required Documentation||Receipts for equipment and installation for tax purposes|
|Official Web Site||http://legis.state.sd.us/sessions/2010/Bills/SB58ENR.pdf|
This generous property tax exemption is available for most types of property, including residential, commercial, and agricultural, making it a great benefit whether want solar power for your home or your farm. Any property with a solar energy system that generates 5 MW or less of electricity or other forms of energy can potentially qualify, so this can even include solar heating systems.
The tax incentive applies to eligible properties on which the system is installed, including the value of the system itself, and exempts you from $50,000 of property tax or 70% of the assessed value of the property, whichever is greater. Geothermal heating systems have a three to four year limit on the exemption, for commercial and residential properties, respectively, but fortunately, solar energy systems have no such limit. When combined with federal incentives for solar energy, this tax exemption can allow you to enjoy substantial financial perks for saving the planet, even in the absence of net metering and other rebates.
Property Tax Assessment
Property Tax Exemption
Utility Loan Program
Utility Rebate Program
Rules, Regulations & Policies
Building Energy Code
Energy Standards for Public Buildings
Renewables Portfolio Standard
Related Programs & Initiatives
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.