Sioux Falls Energy Guide: Solar, Batteries, Backup Power, EV

In short: Most of Sioux Falls buys power from Xcel Energy, which averaged about 13.9¢ per kWh for homes in 2024, before a rate increase that took effect July 1, 2026. Xcel pays 3.16¢ per kWh for power that small generators send to the grid, so solar here pays mainly on what you use yourself. Outages averaged 100 minutes in 2024.

This page covers what is specific to Sioux Falls, Brandon, Harrisburg and Tea: Xcel’s new rates and buyback price, the co-ops on the edge of town, local storm risk, permits and public charging. For statewide rules (no net metering, the solar property tax exemption, electrician licensing) see our South Dakota energy guide.

Sioux Falls at a glance

• Xcel Energy (Northern States Power) serves most of Sioux Falls and parts of Brandon, Harrisburg and Tea. Homes paid about 13.9¢ per kWh on average in 2024 and used about 745 kWh a month (EIA-861).
• Xcel outages (2024): 100 minutes per customer including major events, 64 minutes without; 0.88 interruptions a year (EIA-861, IEEE method).
• Co-ops on the edges: Sioux Valley Energy (about 12.9¢ in 2024, 71 outage minutes) serves areas around Sioux Falls and Brandon; Southeastern Electric Cooperative (about 12.4¢, 71 minutes) serves areas around Harrisburg and Tea (EIA-861).
• Sun: about 4.11 kWh per square meter per day, from 1.6 in December to 6.7 in July (NASA POWER, 2001 to 2020). Our rough estimate: about 1,200 kWh a year per kW of panels.
• Top hazards: Minnehaha County rates “relatively moderate” overall, with ice storm and winter weather “very high” and cold wave, strong wind and tornado “relatively high.” Lincoln County (Harrisburg, Tea and south Sioux Falls) also rates ice storm and winter weather “very high” (FEMA National Risk Index, December 2025).
• Public charging: 110 ports at 32 locations in Sioux Falls; the suburbs have few public ports of their own (AFDC, October 3, 2026).

Your utility and what it means

• Xcel’s 2026 rate increase: Xcel asked the South Dakota Public Utilities Commission (PUC) for a 15% increase in June 2025. The PUC approved a settlement in May 2026 for an increase of about 8.9% (9.5% counting existing riders), with new rates from July 1, 2026, and a $10 monthly residential customer charge. Part of the higher interim rates billed from January to June 2026 is being refunded (PUC docket EL25-024).
• Selling solar power to Xcel: South Dakota has no net metering. Xcel’s Occasional Delivery Energy Service tariff pays 3.16¢ per kWh for energy delivered to its grid from January 1, 2026, down from 3.60¢, plus a monthly metering charge; a Time of Delivery tariff pays different amounts by time of day (PUC docket EL25-025). Ask Xcel which fits your system before you sign.
• Sioux Valley Energy: the co-op walks members through solar interconnection on its NOVA Power Portal, and offers an EV rebate and off-peak charging rate options. Check its site for current amounts.
• Southeastern Electric: sets its own terms; ask before you sign.

Backup power in Sioux Falls

Xcel’s 64 minutes on ordinary days in 2024 is good, and even with major events the total was under two hours. The concern in Sioux Falls is winter: FEMA rates ice storms and winter weather “very high” in both Minnehaha and Lincoln counties. An ice storm in January is the outage that matters, because it arrives when you need heat.

Think about what must run in a cold outage: the furnace blower and controls, a sump pump, the fridge, maybe heat tape. A portable power station covers phones, lights and a CPAP. For heat over a day or more, a natural gas or propane standby generator is usually the most practical; a home battery is quieter and suits shorter outages. Compare them in backup power options and size them with the generator sizing tool or the battery backup calculator.

Safety first: the CPSC says to run portable generators outdoors only, at least 20 feet from the house, with the exhaust pointed away, and never in a garage. Keep snow clear of the exhaust. Fit battery-backed CO alarms. A transfer switch or interlock must be installed by a licensed electrician (generator installation).

Solar in Sioux Falls

Sioux Falls gets about 1,200 kWh a year per kW of panels by our rough estimate. Each kWh you use yourself saves Xcel’s retail price, about 13.9¢ in 2024 and more after the July 2026 increase: roughly $165 a year per kW if you used it all. Each kWh you send to the grid earns 3.16¢, less than a quarter of that. A kW whose output is all exported would earn under $40 a year (our arithmetic).

So the question in Sioux Falls is how much of your solar you use as it is made. Daytime air conditioning, a home office or an EV charged at midday raise that share; an empty house all day lowers it. Size the system to your daytime use, not your annual total. Run your roof through the solar potential tool and the solar savings calculator, and read solar installation. The state’s solar property tax exemption is on the state page.

Batteries in Sioux Falls

With exports worth 3.16¢ and imports far more, a battery has a real job in Sioux Falls: storing midday solar for the evening instead of selling it cheap. That, plus backup during an ice storm, is the case for one. Whether it pays depends on how many kWh it actually shifts each day against its installed cost. We found no Xcel battery program in South Dakota. Compare options in home battery installation and home battery cost.

EV charging in Sioux Falls

Charging at home costs roughly $4.15 per 100 miles at Xcel’s 2024 average and about 30 kWh per 100 miles (our estimate); expect a bit more under the new rates and in winter. Sioux Falls has 110 public ports at 32 locations (AFDC, October 3, 2026). Sioux Valley Energy members should ask about the co-op’s EV rebate and off-peak rate. A Level 2 charger needs a 240-volt circuit and an electrical permit. See EV charger installation and the EV charging cost calculator.

Drive on another fuel? See every alternative fuel station in Sioux Falls: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.

Permits and inspections

• Sioux Falls: the city’s Planning and Development Services, 224 W. Ninth St., issues building permits (fees start at $40) and electrical, mechanical and plumbing permits, with online applications through its Customer Self Service portal. Call 605-367-8670 to ask whether your project needs a permit.
• Homeowners: owners who live in a single-family home and do the work themselves must get separate electrical permits; for solar, batteries, transfer switches and chargers, a licensed electrician is the safer choice.
• Suburbs: Brandon, Harrisburg and Tea issue their own permits; unincorporated areas go through the county.
• Utility and HOA: Xcel or your co-op must approve the interconnection before solar or a battery runs. If you have an HOA, get its approval in writing.

Cities we cover

• Sioux Falls
• Brandon
• Harrisburg
• Tea

Get help

Tell us about your project and we will connect you with a licensed, independent installer who serves the Sioux Falls area. It is free, there is no obligation, and only the installer you choose gets your details. Read how it works.

Sioux Falls energy FAQ

How much does Xcel pay for solar power in Sioux Falls?

South Dakota has no net metering. Xcel’s small-producer buyback tariff pays 3.16¢ per kWh for energy delivered to the grid from January 1, 2026, and a monthly metering charge applies. Power you use yourself saves the full retail price, so solar pays best when you use most of its output.

Did Xcel raise rates in South Dakota?

Yes. After asking for 15%, Xcel settled for an increase of about 8.9% in base revenue, approved by the PUC in May 2026, with new rates from July 1, 2026 and a $10 monthly residential customer charge. Part of the interim rates collected earlier in 2026 is being refunded.

Who is my utility in Brandon, Harrisburg or Tea?

It depends on the address. Xcel serves parts of these towns, while Sioux Valley Energy (around Brandon) and Southeastern Electric Cooperative (around Harrisburg and Tea) serve others. Your bill shows which, and each sets its own solar and EV terms.

What backup power suits a Sioux Falls winter?

For a long ice-storm outage, a natural gas or propane generator connected through a transfer switch by a licensed electrician gives the most hours of heat. A battery covers short outages quietly and stores solar for the evening. Keep any generator outdoors, 20 feet from the house.

Sources

Utilities, prices, outages: U.S. Energy Information Administration, EIA-861 data for 2024. South Dakota PUC dockets EL25-024 (Xcel rate case, public notice and settlement) and EL25-025 (Xcel small power production rates). Sioux Valley Energy EV page. City of Sioux Falls building permits. Sun: NASA POWER, 2001 to 2020. Hazards: FEMA National Risk Index, December 2025. Charging: Alternative Fuels Data Center. Generator safety: CPSC. All checked October 3, 2026.