Solar Energy in Sioux Falls, South Dakota

Average Solar Resource Pop. 183,793

Sioux Falls, South Dakota receives 4.01 kWh/m²/day of solar irradiance and 4.8 peak sun hours daily, representing average solar resources . A typical 5 kW residential solar system in Sioux Falls produces approximately 6,964 kWh annually, potentially saving homeowners $822 per year on electricity bills. After the 30% federal Investment Tax Credit, a 5 kW system has an estimated payback period of 12.8 years, leaving roughly 12 years of profitable operation within a standard 25-year warranty. For maximum annual output in Sioux Falls, panels should be tilted at approximately 44° and oriented true south (180° azimuth).

Solar Resource Summary

4.01
kWh/m²/day
GHI Annual
4.8
hours/day
Peak Sun Hours
4.42
kWh/m²/day
DNI Annual
GHI vs. US national average (4.5 kWh/m²/day) Average
0 7.5 kWh/m²/day

Monthly Solar Data

Month JanFebMarAprMayJunJulAugSepOctNovDec Annual
GHI (kWh/m²/d) 1.61 2.46 3.73 5.04 5.7 6.28 6.69 5.56 4.5 2.97 2.0 1.48 4.01
DNI (kWh/m²/d) 2.67 3.5 4.34 5.07 4.96 5.45 6.41 5.42 5.19 3.91 3.29 2.77 4.42
Source: NREL. Monthly averages in kWh/m²/day and °C.

Solar Production Estimates for Sioux Falls

5 kW Residential
Typical home system
Residential
6,964 kWh/yr
580 kWh/month avg
≈ $822/year savings
10 kW Residential
Large home system
Residential
13,928 kWh/yr
1,161 kWh/month avg
≈ $1,644/year savings
50 kW Commercial
Small commercial
Commercial
69,642 kWh/yr
5,804 kWh/month avg
100 kW Commercial
Medium commercial
Commercial
139,284 kWh/yr
11,607 kWh/month avg

Production estimates based on NREL solar resource data, 44° tilt, south-facing orientation, and 80% performance ratio.

Local Solar Conditions in Sioux Falls

Sioux Falls shows significant seasonal variation in solar output, with peak summer months receiving 6.7 kWh/m²/day compared to 1.5 kWh/m²/day in winter — a 4.5x difference. Battery storage or net metering is particularly valuable here.

Best Tilt Angle
44° (latitude-optimized)
Best Azimuth
180° (true south)
Coordinates
43.5446°N, -96.7311°

Financial Overview — Solar in Sioux Falls

Solar can be viable with the right setup in Sioux Falls. While Sioux Falls's solar resource is modest, favorable financing, state incentives, and high electricity rates can still make solar cost-effective. Estimated annual savings from a 5 kW system: $822/year.

Avg. Electricity Rate
$0.118/kWh (SD avg)
Est. Annual Savings (5 kW)
$822/year
Est. Payback Period
12.8 years (after 30% ITC)
Federal ITC
30% of system cost
Net Metering
Available
Financial estimates assume a 5 kW system at $3,000/W installed ($15,000 pre-ITC, $10,500 after 30% credit). Actual costs vary by installer and equipment. Consult a local solar installer for firm quotes.

Solar FAQ — Sioux Falls, South Dakota

In Sioux Falls, South Dakota, a 5 kW residential solar system produces approximately 6,964 kWh of electricity per year. A 10 kW system produces about 13,928 kWh annually. These estimates use 4.0 kWh/m²/day average solar irradiance and an 80% system performance ratio, accounting for real-world losses from wiring, inverter efficiency, and temperature. Actual output will vary based on your specific roof orientation, shading, and equipment.

Sioux Falls receives an average Global Horizontal Irradiance (GHI) of 4.01 kWh/m²/day. This is 0.49 kWh/m²/day below the US national average of 4.5 kWh/m²/day, placing Sioux Falls near the national average. GHI measures total solar energy incident on a horizontal surface and is the primary indicator of a location's solar resource quality.

Sioux Falls, South Dakota receives an average of 4.8 peak sun hours per day. Peak sun hours represent the equivalent number of hours when solar irradiance equals 1,000 W/m² — the standard condition used to rate solar panel output. This means a 1 kW solar panel array in Sioux Falls produces 4.8 kWh on a typical day. Seasonal variation is significant: summer months see peak sun hours 40–60% higher than winter months in most US locations.

Sioux Falls is a average location for solar panels, with 4.01 kWh/m²/day solar irradiance — near the national average. With an estimated payback period of 12.8 years, solar installations in Sioux Falls can be financially attractive, especially given South Dakota's electricity rates.

The optimal tilt angle for solar panels in Sioux Falls is approximately 44°, which corresponds to the city's latitude. This angle maximizes annual energy production by ensuring panels receive the most direct sunlight averaged over the year. For maximum winter output, tilt panels at latitude + 15° (59°). For maximum summer output, use latitude − 15° (29°). Fixed south-facing panels at the latitude angle are the standard recommendation for residential systems in Sioux Falls.

A 5 kW solar system in Sioux Falls can save an estimated $822 per year on electricity bills, based on Sioux Falls's average electricity rate of $0.118/kWh. Over a 25-year system lifetime, that represents $20,550 in total savings before accounting for electricity rate increases. After the 30% federal Investment Tax Credit, the net system cost of approximately $10,500 for a 5 kW system yields a payback period of 12.8 years.

For a typical home in Sioux Falls using 1,000 kWh/month, a 5 kW solar system producing 580 kWh/month would offset approximately 58% of a typical household's electricity use. Most residential installations in similar climates range from 5 to 12 kW depending on energy consumption, roof size, and budget. Use SolarScope's Site Studio to get a personalized system size recommendation based on your specific address and energy bills.

Based on local solar irradiance and electricity rates, a 5 kW residential solar system in Sioux Falls has an estimated payback period of 12.8 years. This calculation assumes a net system cost of $10,500 (after the 30% federal ITC) and annual savings of $822. Modern solar panels carry 25-year performance warranties, so systems in Sioux Falls would operate profitably for roughly 12 years after payback. Electricity rate increases over time typically reduce the effective payback period.
Learn more: Solar irradiance · Peak sun hours · GHI explained · Net metering · How solar analysis works

Get a Detailed Solar Analysis for Sioux Falls

This page shows area-level averages. For your specific address — accounting for roof orientation, shading trees, and your utility rate — use SolarScope's AI-powered Site Studio.

Open Site Studio Community Data for South Dakota

Quick Stats

Annual GHI
4.01 kWh/m²/day
Peak Sun Hours
4.8 h/day
5kW Production
6,964 kWh/yr
Payback (5kW)
12.8 years
Analyze your Sioux Falls address

Get precise production estimates for your roof

Open Site Studio
← South Dakota solar data ← All states