UNDATED – For years, South Dakota has lagged well behind other U.S. states for production of solar power, but the launch of two large solar farms and availability of new tax incentives are creating hope the state may soon see a hotter market for solar.
Drivers on Interstate 90 east of Rapid City can look to the south at the New Underwood exit and see clear evidence of an ongoing solar power surge in South Dakota. The gray grid of solar panels are part of the $190 million Wild Springs Solar project that can now generate up to 128 megawatts of solar power from a 2 square-mile piece of prairie land.
Until last year, South Dakota had only one small utility-scale solar farm near Pierre, and solar accounted for only .01% of the state’s overall power generation.
The solar industry in the state received a jolt of energy recently as a medium-sized solar farm began producing electricity near Hot Springs last fall and Wild Springs solar farm became operational in New Underwood in March. Another solar project is planned for the Brookings area, and a state utilities official said he’s aware of perhaps a dozen other project ideas being considered around the state.
Major clean energy tax incentives in the 2022 federal Inflation Reduction Act passed by the Biden Administration are providing new financial fuel to developers of solar generation facilities. The tax breaks come at a time when energy companies are moving away from coal-fired plants and power providers are seeking to diversify the sources of energy they purchase and provide.
But … while solar and wind power generation are rising in South Dakota and across the U.S., experts say the American power grid will continue to rely partly on coal and natural gas due to their reliability and ability to generate power on a consistent basis.
