What drives electric bills in South Dakota
Residential electricity in South Dakota averaged 14.5¢ per kWh in January–July 2026, up 10.3% from 13.2¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 15.4¢. The typical home here used 994 kWh a month in 2024, 15% more than the U.S. average, so how much power you use matters as much as the price.
- Heating season. Homes with electric heat or heat pumps see their highest bills in January and February.
- Summer cooling. Hot summer days in the east of the state push A/C use up.
- Rate increases. Rates rose in 2025 and 2026 as utilities passed through higher costs for fuel, transmission and new generation.
Who supplies your power
Black Hills Energy serves the western part of the state, Xcel Energy serves Sioux Falls, and NorthWestern Energy serves eastern areas. Rural electric co-ops and municipal utilities serve the rest.
Ways to pay less in South Dakota
- Ask your co-op about off-peak heat or water heater programs. Many offer lower rates in exchange for letting them cycle equipment during peak demand.
- Replace old incandescent bulbs and use LED holiday lights. During long winter nights lighting accounts for more of the bill.
For example, a 1,500 W space heater running 8 hours a day costs about $53 a month at South Dakota prices. Check what your appliances cost to run in South Dakota.
Help paying your bill in South Dakota
- LIEAP: South Dakota’s Low Income Energy Assistance Program helps with heating costs through the Department of Social Services.
- Weatherization: LIEAP-eligible households can get free insulation and air sealing.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in South Dakota?
A typical 7 kW rooftop system in South Dakota produces roughly 9,100 kWh a year, about 76% of what an average home here uses. At the state’s average price of 14.5¢, that power is worth about $1,320 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How South Dakota compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| South Dakota | 14.5¢ | 994 | $144 |
| North Dakota | 12.4¢ | 1,029 | $127 |
| Nebraska | 12.9¢ | 956 | $123 |
| Wyoming | 14.0¢ | 863 | $120 |
| Montana | 14.0¢ | 852 | $119 |
| Iowa | 14.2¢ | 832 | $118 |
| Minnesota | 16.3¢ | 712 | $116 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.