This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer.
South Dakota offers fewer state-specific commercial solar incentives than other states. However, SD's property tax incentive can be combined with federal solar incentives, which can significantly reduce the cost of commercial solar projects in South Dakota.
South Dakota Property Tax Exemption
South Dakota businesses that install solar systems with a capacity for 5 mega-watts or less are exempt from property taxes for the first $50,000 or 70% of the assessed solar system value, whichever comes first.
Fill out our interest form to get connected with one of our trusted installers and find out which regional solar incentives you may qualify for!
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Federal Incentives Available in SD
South Dakota business owners may take advantage of the federal solar incentives available. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system.
- Business Energy Investment Tax Credit (ITC)
The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district.
Connect with a local installer to find out if you qualify for additional tax credits.
- Renewable Electricity Production Tax Credit (PTC)
Business owners in South Dakota may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.
Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.
- Modified Accelerated Cost-Recovery System (MACRS)
South Dakota business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.
- South Dakota Commercial Property-Assessed Clean Energy (C-PACE)
C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.
- Rural Energy for America Program (REAP Grant)
The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.
This grant is only available if you own a small business in an area with less than 50,000 in total population.
Connect with a local South Dakota installer to see which federal incentives can contribute to your solar system.
Get Connected with an Installer!
As the premier solar equipment distribution company in the United States, Greentech Renewables goes beyond supply by connecting business owners to our vast network of trusted local installers in South Dakota. Our installers work closely with one of our 13 Greentech Renewables locations across the Midwest. Our installers will guide you through each stage of the project from creating a custom proposal and project design to sourcing materials and installing the solar system. Fill out our interest form to get connected with the best installer for you!
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