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The state only has 2 MW of installed solar capacity, but its integrated resource plan includes 120 MW of clean energy resources by 2025, including 100 MW of wind or solar generation, and 20 MW of energy storage split equally between the two states.
Home to the Badlands, Mount Rushmore, wandering buffalo and the Sioux Indian tribe, South Dakota might conjure up images of gently rolling hills ideal for ground-mounted solar panels. However, the state ranks last in the solar developing country in terms of active capacity. According to the Solar Energy Industries Association (SEIA), South Dakota has less installed solar power than Alaska, located at a higher latitude.
The Dakotas are historic coal and natural gas regions, where one of its major utilities, the Black Hills, now operates 1.48 GW of generation assets, of which 27% coal, 51% oil and gas, and 19% wind, compared to a decade ago when its fleet was 63% coal. But the Black Hills South Dakota and Wyoming Integrated Resource Plan now includes 120 MW of clean energy resources by 2025, including 100 MW of wind or solar generation, and 20 MW of energy storage split evenly between the two states.
According to the SEIA, South Dakota is projected to add 246 MW of solar resources over the next five years, though that momentum may not yet move the needle compared to other Midwestern and Midcontinental states as the The state has only seen $5 million in added investment in recent years.
South Dakota generated 3.22 GW of renewable energy in 2021, ranking the state 23rd in the country thanks primarily to its abundant wind resources, with 54% of its electricity coming from renewable energy sources, according to American Clean Power Association. Solar power, however, only exists in a few areas of the state, with the largest solar resources in the far southwest. Only half of its current 2 MW of solar generation comes from small-scale systems installed by customers.
Incentives
Like North Dakota and Montana, South Dakota no longer has an active Renewable Portfolio Standard (RPS). Its previous RPS expired in 2015 and has not been renewed since. The previous RPS required that only 10% of the states retail energy mix come from renewable energy such as wind, solar or biomass.
Although the state does not have a net metering mechanism, homeowners could see some relief when it comes to taxes. South Dakota offers a property tax credit to homeowners who have installed solar panels. Allows exemption from property tax on the first $50,000 or 70% of the assessed value of the solar system, whichever is greater.
Some solar companies have the option to offer net metering, although it is not currently required by the state.
Featured Project
Located in Hughes County, Pierres Solar Farm is the only solar project in the state that generates 1 MW of electricity, enough to power more than 134 South Dakota homes. Missouri River Energy Services municipal utility cooperative has purchased power from the solar array built in October 2016 by Geronimo Energy, now part of National Grid Renewables. The facility uses 30-degree fixed-tilt solar panels, with 4,284 315-watt multicrystalline panels installed on 8.9 acres using 42 24 kW string inverters, according to the local utility companys website.
In September 2022, Greenbacker Renewable Energy raised $186 million in debt facilities for the construction of two solar projects, one of which is Fall River Solar, a proposed 80 MW facility in Fall River County, SD Fall River had been subject of project avoided cost litigation related to Black Hills, with litigation between developer Energy of Utah, LLC and Black Hills related to project avoided cost dating back to 2016. Despite the purchase of the Fall River project by part of the utility, which then had a nominal capacity of 52 MW, the company abandoned construction plans for the facility in mid-2019.
The renovated 80 MW Fall River Solar project comprises 80% of Black Hills multi-year renewable energy portfolio of 100 MW of new projects in South Dakota and Wyoming. The Greenbacker and Borrego project is expected to come online in early 2023.
Community Solar Power
With six investor-owned utilities and more than 24 rural electric cooperatives, community solar power represents an option to supply low-cost clean energy to its population of 895,000.
An electric cooperative, Sioux Valley Energy, plans to install a community solar facility at the Colman, SD utility center. It will use 140 panels with a total capacity of 60 kW. Cooperative members may purchase the production of one or more panels for $1,000 over a 20-year subscription period. Sioux Valley Energy serves nine cities in southeastern South Dakota and seven in western Minnesota.
Black Hills Energy is preparing its own community solar power project in Colorado, but has not yet announced plans to install it in its South Dakota service territory. Calls to the Black Hills media group were not returned at the time of publication.
The company serves electric and gas services to 1.3 million customers in eight states, and has plans to reduce electric power emissions by 70% by 2040, thanks to the conversion or retirement of more coal resources. Through 2021, the company achieved a 33% emissions reduction by retiring 123.3 MW of coal and adding 289 MW of wind resources. The company has set itself the goal of achieving net zero emissions across its entire gas infrastructure network by 2035 by replacing its gas pipelines, using carbon capture systems and leak detection. |
