South Dakota’s Untapped Solar Gold Mine: Boosting Wallets And Energy Freedom

While South Dakota has long been known for its wind energy, a dramatic solar boom is transforming the state’s energy terrain. In 2023, solar electricity generation surged by 3,600% compared to the previous year. This growth came as the Fall River Solar facility brought the state’s utility-scale solar capacity from just 1 MWac to 80 MWac.

By late 2023, solar provided nearly 1-1.3% of South Dakota’s electricity, with the Fall River plant generating 96.5% of that total. The expansion continued in April 2024 when the Wild Springs Solar facility added 128 MWac, more than doubling the state’s capacity to 209 MW. These new solar facilities are expected to reduce fossil fuel reliance significantly in a state where coal and gas contribute only about 15.7% to overall electricity generation. The Wild Springs Solar farm alone offsets 190,000 metric tons of CO2 emissions annually, equivalent to removing exhaust from 42,000 vehicles for a year. As of mid-2025, South Dakota has 270 MW of solar installed, enough to power over 32,000 homes.

The state’s geography offers perfect conditions for solar growth. Southwest South Dakota, especially areas near New Underwood and Fall River, has the best solar resources. The abundance of open land provides ample space for large solar farms and needed transmission infrastructure. This expansion aligns with global trends where solar PV is expected to account for half the increase in electricity demand through 2027.

Despite recent growth, South Dakota ranks 47th nationally for solar production. The state’s energy mix is dominated by wind (59%) and hydropower (21%), with renewables together providing 77-81% of electricity. Fossil fuels make up about 18% of generation, and South Dakota remains a significant electricity exporter.

The economic impact has been substantial, with solar projects bringing over $325 million in direct investment by 2025. The sector now includes 11 solar companies and has grown 42% over the last decade. Federal tax credits and moves away from coal are driving development.

The South Dakota Public Service Commission oversees solar power rates and utility services. While legislative support remains limited compared to wind energy, interest in solar is rising.

Challenges persist, as South Dakota ranked low in national solar capacity until recently. However, the state’s abundant sunshine and wide-open spaces represent an untapped resource that’s finally beginning to shine.