South Dakota Energy Rebates 2026
South Dakota's federal HOMES and HEAR rebates are part of the DOE Home Energy Rebates program. We could not confirm from an official government source whether they are open to the public as of July 2026, so treat the amounts on this page as the federal framework and check with the administering agency first. The utility and weatherization programs listed further down this page are available today. The 25C and 25D federal tax credits expired December 31, 2025.
Program status and income limits on this page were last checked against official state and federal sources on . These programs change without notice.
HOMES Rebate Program in South Dakota
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
No South Dakota government page addressing these programs could be found.
HEAR (HEEHRA) Rebates in South Dakota
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
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South Dakota State Incentive Programs
SD Weatherization Assistance Program
Federally-funded free weatherization for income-eligible South Dakota households. Covers insulation, air sealing, window repairs, and heating system improvements. Income limit: ≤200% federal poverty level. Services delivered through regional community action agencies. Priority given to elderly, disabled, and families with young children.
Learn moreLIHEAP Energy Assistance
Helps income-eligible households pay heating and cooling costs. Not a rebate program, provides direct bill payment assistance. Income limit varies annually. Useful for households managing high winter heating costs while saving up for equipment upgrades.
Learn moreUtility Rebate Programs in South Dakota
Black Hills Energy (South Dakota)
Rapid City, western South Dakota
Xcel Energy (South Dakota)
Sioux Falls metro area, northeastern South Dakota
East River Electric Power Cooperative
Eastern South Dakota (wholesale power to member co-ops)
Area Median Income (AMI) in South Dakota
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Minnehaha County | $94,950 | $178,000 |
| Pennington County | $81,050 | $151,900 |
| Brown County | $85,100 | $159,500 |
| Brookings County | $89,750 | $168,200 |
| Meade County | $78,400 | $147,000 |
| Codington County | $78,000 | $146,200 |
Eligibility is set by county and household size. The 80% figures are the HUD FY2026 income limits published for each county and are reproduced as-is. HUD does not publish a 150% limit, so that column is computed from the 80% limit; checked against Minnesota's official 2026 county table, the method lands within $200 on every county, but where your state publishes its own table, that table governs. Figures are for a 4-person household and change with household size.
Use Our Calculator to Check EligibilityBefore you spend money on this
Energy Rebate Calculator is an independent website. It is not affiliated with, endorsed by, or operated by the U.S. Department of Energy, South Dakota, or any other government agency, and nothing on this page is an offer, an application, or a promise of payment.
Federal and state rebate programs launch, pause, change their amounts and run out of funds without notice, and eligibility rules differ by county, household size, housing type and sometimes by region within a state. Most programs also refuse to pay for work completed before their launch date. Figures here are published to help you understand roughly where you stand, not to be relied on as the final word.
Confirm your eligibility and the current terms directly with the administering agency, and get written confirmation, before you sign a contract or buy equipment. Where this page cites an official source, that source governs. If you spot something out of date on this page, tell us and we will correct it.
Data vintage. The rebate data on this page was last updated on . We publish this date so you can judge for yourself how current the figures are.
Frequently Asked Questions
Are the federal heat pump tax credits still available in South Dakota in 2026?
No. The Section 25C nonbusiness energy property credit, which provided a 30% tax credit up to $2,000 for heat pumps, expired December 31, 2025 under the One Big Beautiful Budget Act. South Dakota homeowners cannot claim this credit on 2026 federal returns. The HEAR rebate program (up to $8,000 for heat pumps, income-qualified) is the primary remaining federal heat pump incentive.
Does South Dakota have a state rebate program for energy efficiency?
South Dakota does not have a state-funded residential energy rebate program. The primary incentives available are federal HEAR and HOMES programs, plus utility rebates from Black Hills Energy or Xcel Energy depending on your service territory. The SD Weatherization Assistance Program provides free upgrades for income-eligible households (≤200% federal poverty level) through the SD Housing Development Authority.
What HEAR rebate can I get for a heat pump in South Dakota?
HEAR rebates for heat pumps are up to $8,000 for both ducted and ductless (mini-split) systems. Eligibility requires household income ≤150% of Area Median Income. At ≤80% AMI (e.g., a family of 4 earning under ~$67,200 in Sioux Falls), the rebate covers 100% of costs up to $8,000. At 80–150% AMI, it covers 50%. The heat pump water heater rebate adds another $1,750.
Is solar worth it in South Dakota without the 25D tax credit?
The federal 25D solar tax credit expired December 31, 2025. Without it, solar payback periods in South Dakota extend significantly, electricity rates are relatively low (12–14 cents/kWh), so the economic case was already marginal. South Dakota has no state solar incentive or net metering mandate. Homeowners currently on propane or oil heat should prioritize heat pump HEAR rebates over solar in 2026.
How to Claim Your South Dakota Rebates
