South Dakota residential solar energy incentives

Renewable energy systems exemption:

-Residents of South Dakota who own and install renewable energy systems on their residential property are eligible for a property tax exemption of 100% of the total cost including installation of the system and equipment.
-Eligible renewable energy technologies for this tax exemption include solar space heat, solar water heat, solar thermal process, solar space heat, photovoltaics, landfill gas, biomass, geothermal electric, geothermal heat pumps and wind energy systems.

Utility-sponsored loan and rebate programs:

-Many utility loan and rebate programs are available throughout the state of South Dakota provided by municipal cities and utility companies.
-Details and requirements for each program will vary.
-Loan and rebate programs are available for customers who install geothermal heat pumps and water heaters.
-Loans are given at low interest to help with the purchase and installation of geothermal and water heating technologies.
-Rebates are given as a one time set amount for the initial cost of heat pumps and water heaters.

Residential renewable energy tax credit:

-This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
-Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
-The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
-This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion:

-This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
-The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
-Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages:

-This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.