The average residential electricity rate in South Dakota (SD) is $0.1288 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking South Dakota #13 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average South Dakota household consumes 1,103 kWh per month, resulting in a monthly electric bill of approximately $142 and annual electricity costs of about $1,704.
South Dakota generates about 75% from zero-fuel-cost sources (hydro and wind).
This comprehensive guide covers South Dakota electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
South Dakota residential electricity rates have increased 9% over the past six years. The table below shows the trajectory compared against the national average.
| Year | South Dakota ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1184 | $0.1322 | -10% |
| 2022 | $0.1230 | $0.1492 | -18% |
| 2024 | $0.1260 | $0.1680 | -25% |
| Apr 2026 | $0.1288 | $0.1805 | -29% |
South Dakota has a regulated electricity market. The primary providers are: Black Hills Energy, Northwestern Energy, East River Electric Cooperative.
South Dakota generates electricity from: Hydroelectric 40%, Wind 35%, Coal 12%, Natural gas 10%, Other 3%.
Your monthly electric bill = kWh Used × Rate per kWh. The average South Dakota household uses 1,103 kWh/month.
South Dakota benefits from massive Missouri River hydroelectric dams and strong wind resources, keeping rates moderate.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
South Dakota receives 4.8 peak sun hours/day. A 6 kW system produces ~8,620 kWh/year, saving ~$1,110/year. With the 30% federal ITC, payback is typically 8-12 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| South Dakota (SD) | $0.1288 | $142 | Regulated |
| Iowa (IA) | $0.1418 | $131 | Regulated |
| Minnesota (MN) | $0.1488 | $123 | Regulated |
| Montana (MT) | $0.1228 | $118 | Regulated |
| Nebraska (NE) | $0.1198 | $122 | Regulated |
| North Dakota (ND) | $0.1092 | $132 | Regulated |
| Wyoming (WY) | $0.1128 | $117 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.