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Solar panels in Sioux Falls, SD

Roofs in Sioux Falls get about 1,507 hours of usable sunlight a year — more than 51% 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

How we worked this out for Sioux Falls

Every number on this page comes from these seven steps. Nothing is a national average — the sunlight figure is measured from Sioux Falls rooftops.

#StepResult
1What one panel makes here
400W ÷ 1000 × 1,507 sun hrs × 0.85 system losses
512 kWh/yr
2Panels needed to cover typical usage
10,800 kWh ÷ 512 kWh per panel
22 panels
3System size
22 panels × 400W
8.80 kW
4Annual production
8.80 kW × 1,507 hrs × 0.85
11,272 kWh/yr
5Installed cost
8,800 W × $2.85 per watt, then −30% federal credit
$17,556
6Annual saving
3,780 kWh used as generated × 12.3¢  +  7,492 kWh exported × 12.3¢
$1,343/yr
7Payback
$17,556 ÷ $1,343 per year
13.1 years

Step 6 matters more than it looks. Only 34% of what a system this size produces in Sioux Falls is used the moment it is generated; the other 7,492 kWh is exported and credited one-for-one under net metering. Because exports here are credited at or near retail, that split changes the payback very little — 12.7 years against the 13.1 we show. In places where exports pay a fraction of retail the same split moves payback by years, which is why we model it explicitly rather than assuming.

Assumptions: 400W panels, 15% system losses (inverter, wiring, heat, soiling), $2.85/W installed, 10,800 kWh typical annual household use, 12.3¢/kWh electricity. Change any of those and every figure above moves — which is exactly why a single national "solar costs X" number is misleading.

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

When Sioux Falls actually produces

Annual totals hide the thing that catches people out: 38% of Sioux Falls's yearly sunlight arrives in May–July, and just 12% across November–January.

Estimated usable sun hours by month in Sioux Falls (latitude 43.5°)
MonthSun hrsShare of year
Jan 61
Feb 86
Mar 120
Apr 157
May 183
Jun 195
Jul 189
Aug 167
Sep 133
Oct 96
Nov 67
Dec 54

Sioux Falls produces about 3.6× as much in Jun as in Dec — a normal mid-latitude swing. Expect real winter shortfall and summer surplus rather than steady year-round output.

The annual total is measured from Google's rooftop imagery. Its split across months is calculated from solar geometry at Sioux Falls's latitude, not separately measured, so treat the monthly figures as the shape of a typical year rather than a forecast.

How Sioux Falls compares to the other 788 cities

MeasureSioux Falls Rank of 788
Usable sunlight1,507 hrs386th
Sunlight lost to shade11%58th most
Median roof size321 m²94th largest
Electricity rate12.3¢665th highest
Payback13.1 yrs647th fastest
Grid carbon832 kg/MWh91st dirtiest

What actually stands out about Sioux Falls:

  • Shading is a real problem here. Sioux Falls loses 11% of its potential sunlight to trees, chimneys and neighbouring buildings — the 58th-worst of the 788 cities measured. Panel placement matters more here than in most places, and a roof survey is worth more than a phone quote.
  • Plenty of roof to work with. Typical roofs here fit around 92 panels — roughly 4× what an average home needs. Roof size will not be what limits your system in Sioux Falls.
  • Every kWh counts more here. The grid serving Sioux Falls emits 832 kg CO₂ per MWh, among the highest of the 788 cities measured — so the same panels displace more emissions than they would elsewhere.

Cities with almost the same sunlight

These are the closest matches to Sioux Falls's 1,507 usable sun hours from other states and provinces. Same sunlight, different electricity prices — which is usually what decides whether solar is worth it.

CitySun hrs RatePayback
Williston, ND 1,50611.1¢ 14.5 yrs
Pendleton, OR 1,50612.4¢ 13 yrs
Columbia, MD 1,50518.3¢ 8.8 yrs
Durham, NC 1,50513.2¢ 12.2 yrs

Nearby cities

See all of South Dakota → statewide sunlight, rates, incentives and every city we've measured.

Sioux Falls solar questions

How many solar panels do I need in Sioux Falls?

About 22 panels for an average home using 10,800 kWh a year. Sioux Falls roofs get 1,507 usable sun hours, so each 400W panel produces roughly 512 kWh annually. A typical Sioux Falls roof fits about 92 panels, so roof space is unlikely to be your limit.

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 a 25-year panel life. That is slower than average, so compare several quotes before committing. Exported power earns full retail credit here.

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. That works out near $2.85 per watt installed. Roof pitch, shading, electrical panel upgrades and equipment choice move the price most, which is why quotes for the same house can differ by thousands.

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.