In short: Rapid City and Spearfish buy power from Black Hills Energy, which averaged about 14.4¢ per kWh for homes in 2024 and has asked to raise rates by about $50.6 million a year. Its customers lost just 57 minutes of power in 2024, but in fire weather it can switch lines off on purpose. That shapes backup plans here.
This page covers what is specific to Rapid City, Box Elder and Spearfish: Black Hills Energy’s pending rate case and solar terms, the co-ops around town, wildfire shutoffs, permits and public charging. For statewide rules (no net metering, the solar property tax exemption, electrician licensing) see our South Dakota energy guide.
Rapid City at a glance
- Black Hills Energy (Black Hills Power) serves Rapid City and Spearfish and parts of Box Elder. Homes paid about 14.4¢ per kWh on average in 2024 and used about 765 kWh a month (EIA-861).
- Black Hills outages (2024): 57 minutes per customer, with no major events that year; 0.87 interruptions per customer (EIA-861, IEEE method).
- Co-ops around town: Black Hills Electric Cooperative (about 14.8¢ in 2024; 229 outage minutes with major events, 102 without) serves areas around Rapid City and into the hills; West River Electric (about 14.3¢; 44 minutes) serves areas around Box Elder; Butte Electric serves areas near Spearfish (EIA-861).
- Sun: about 4.25 kWh per square meter per day, from 1.6 in December to 7.0 in July (NASA POWER, 2001 to 2020). Our rough estimate: about 1,240 kWh a year per kW of panels.
- Top hazards: Pennington County rates wildfire, cold wave, hail, ice storm, lightning and winter weather “relatively high.” Lawrence County (Spearfish) rates winter weather “relatively high” and wildfire “relatively moderate” (FEMA National Risk Index, December 2025).
- Public charging: 35 ports at 21 locations in Rapid City and 11 in Spearfish; Box Elder has few public ports of its own (AFDC, October 3, 2026).
Your utility and what it means
- Pending rate case: on February 19, 2026, Black Hills Power asked the South Dakota Public Utilities Commission (PUC) to raise its base revenue by about $50.6 million a year, affecting about 75,000 South Dakota customers. The PUC suspended the proposed rates in March, the case is still open, and in July the company gave notice that it intends to put interim rates in place, subject to refund (PUC docket EL26-003). Expect your price to change; check the docket or your bill.
- Selling solar power: South Dakota has no net metering. Black Hills Energy’s own explanation (2021) is that a customer’s excess generation offsets their use within the same monthly billing period. Among the tariff sheets in its 2026 rate case is a small-generator schedule (100 kW or less) that would pay 2.48¢ per kWh for output beyond what the customer is using at that moment, with a monthly charge for the extra metering. It is a proposal, and the PUC has not ruled. Ask Black Hills which terms would apply to a new home system before you sign.
- Co-op members: Black Hills Electric, West River Electric and Butte Electric write their own solar and EV rules. Ask yours.
Backup power in Rapid City
Day to day, Black Hills Energy’s grid was steady in 2024: 57 minutes, with no major-event days at all. The local twist is wildfire. On windy, dry days Black Hills Energy can de-energize lines on purpose, a Public Safety Power Shutoff. On March 12, 2026, it shut off about 560 customers in the Southern Hills around Hot Springs, Buffalo Gap and Oral for several hours, after warning about 730. It also notes that customers outside a shutoff area can have longer outages on fire-risk days, because extra protection settings trip lines faster and crews must inspect them before restoring power.
If you live in or near the forest, plan for shutoffs on the worst fire days, and keep your contact details current with Black Hills Energy so you get its warnings. In town, a portable power station or a home battery covers a few hours. For homes in the hills, with well pumps or medical needs, a propane standby generator is the usual answer. 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. On fire-risk days, keep a generator away from dry grass. Fit battery-backed CO alarms. A transfer switch or interlock must be installed by a licensed electrician (generator installation).
Solar in Rapid City
Rapid City gets about 1,240 kWh a year per kW of panels by our rough estimate, with very sunny summers. Power you use yourself saves Black Hills Energy’s retail price, about 14.4¢ in 2024: roughly $180 a year per kW if you used it all. What surplus earns depends on the terms Black Hills applies to your system. At the 2.48¢ in its proposed small-generator schedule, exported power would be worth less than a fifth of retail (our arithmetic).
So size the system to what you use during the day, and ask each installer to show the payback under both the current terms and the proposed 2.48¢ rate. Hail is rated “relatively high” in Pennington County, so check the panels’ hail rating and your insurance. 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 Rapid City
A battery does two jobs here. It carries the house through a planned wildfire shutoff, silently and with no fuel, which matters on a dry, windy day. And if exports are paid at something like the proposed 2.48¢, it lets you store midday solar for the evening instead of selling it cheap. We found no Black Hills Energy battery program in South Dakota. Compare options in home battery installation and home battery cost.
EV charging in Rapid City
Charging at home costs roughly $4.30 per 100 miles at Black Hills Energy’s 2024 average and about 30 kWh per 100 miles (our estimate); cold weather and the pending rate case could raise it. Rapid City has 35 public ports and Spearfish 11 (AFDC, October 3, 2026), on the Interstate 90 corridor that brings visitors to the Black Hills. 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 Rapid City: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.
Permits and inspections
- Rapid City: the city’s Building Services Division handles building permits, plan review, inspections and contractor licenses. Its permit reports list solar installations and electrical permits for solar, so expect both a building and an electrical permit.
- Spearfish and Box Elder: each issues its own permits; areas outside city limits go through the county.
- Utility and HOA: Black Hills Energy or your co-op must approve the interconnection before solar or a battery runs. If you have an HOA, get its approval in writing.
- Who does the wiring: use a licensed electrician (see the state page for the license lookup).
Cities we cover
- Rapid City
- Box Elder
- Spearfish
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Rapid City energy FAQ
Is Black Hills Energy raising rates in Rapid City?
It has asked to. Black Hills Power filed with the PUC on February 19, 2026 for about $50.6 million a year more in base revenue. The case is still open, and the company has given notice of interim rates, subject to refund. The final increase may differ.
Can Black Hills Energy shut off my power for wildfire risk?
Yes, on high-risk days. On March 12, 2026, it de-energized lines to about 560 customers around Hot Springs, Buffalo Gap and Oral. Keep your contact details current so you get warnings, and plan backup for medical equipment and refrigerated medicine.
How much will Black Hills Energy pay for my solar power?
South Dakota has no net metering. Black Hills has described excess generation as offsetting your use within the monthly billing period. Its 2026 rate case includes a proposed small-generator schedule paying 2.48¢ per kWh for output beyond what you are using at the moment. Ask which terms apply before you sign.
Who is my utility in Box Elder?
It depends on the address: Black Hills Energy serves part of the area and West River Electric Association serves other parts. Your bill shows which, and each sets its own solar and EV terms.
Sources
Utilities, prices, outages: U.S. Energy Information Administration, EIA-861 data for 2024. South Dakota PUC docket EL26-003 (Black Hills Power rate case: application letter, proposed tariff sheets, orders) and docket EL21-011. Black Hills Energy South Dakota emergency PSPS update and cogeneration tariff page. City of Rapid City Building Services. 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.