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U.S. Department of Energy Energy Efficiency and Renewable Energy

Energy Incentive Programs, South Dakota

Updated December 2011

South Dakota utilities budgeted $1.6 million in 2010 to promote energy efficiency and load management in the state.

What public-purpose-funded energy efficiency programs are available in my state?

South Dakota has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

Black Hills Power offers rebates for the installation of electric water heaters and high-efficiency air-, water-, and ground-source heat pumps, in addition to technical assistance including energy management, rate savings analysis, and load monitoring.

Otter Tail Power Company offers a wide variety of rebates for lighting retrofits, new or replacement NEMA premium efficiency motors ($20 to $3,000 per motor), high efficiency air-source ($12 per 1,000 heating Btu) or geothermal ($18 per 1,000 heating Btu) heat pumps, and custom incentives for certain technologies.

Mid-American Energy's Commercial EnergyAdvantage® program provides rebates for a wide array of energy-efficient equipment including lighting, heating and cooling equipment, insulation, and motors and variable speed drives.

Montana-Dakota Utilities offers the Commercial Natural Gas Heating Program, which provides rebates of up to $300 per unit for replacing furnaces of 80% or less annual fuel utilization (AFUE) efficiency with high efficiency natural gas furnaces (AFUE of 92% or greater).

Xcel Energy offers a free online energy assessment tool that can help facilities understand their energy usage and identify energy-saving opportunities.

What load management/demand response options are available to me?

Xcel Energy offers two load management programs that may be of interest to federal customers:

  • Xcel's Electric Rate Savings programs are for customers willing to curtail load (by as little as 50 kW) at Xcel's request during times of peak demand. The June-September discount ranges from $5.12 per kW of controllable load, and the October-May discount is $2.12 per kW. Facilities that can shift a portion of their electric load to off-peak hours (9 p.m. to 9 a.m.) may be able to garner significant additional savings by adding Xcel's time-of-day service.

  • The Saver's Switch program permits Xcel to remotely adjust customers' air conditioners so that they cycle off and on at 15- to 20-minute intervals. Customers are credited with a monthly discount of $5 per ton of enrolled air conditioning from June through September.

Otter Tail Power Company offers the following demand response programs:

  • The Released Energy Access Program pays large customers (at least 500 kW peak demand) for voluntary load curtailments. When Otter Tail expects peak conditions and high energy prices, it will alert program participants by e-mail of the price offered for curtailed energy. Customers who wish to accept the offer reply by making their commitment to curtail a specific amount of power at the required time.

  • The Energy Control program offers rates about half the standard electricity rate to customers who allow Otter Tail Power to control specific equipment on their system during on-peak times. This only applies to customers who are signed up for special off-peak electricity prices.

  • Water heating credits and discounted off-peak water heating rates are available for customers with separately metered water heaters that permit the utility to directly control their electric water heaters for up to 14 hours per day.

Utilities in the footprint of MISO (formerly the Midwest Independent System Operator) may enroll interested customers in any of MISO's various demand response offerings, from which they can receive payments for reducing load. Federal customers should contact their local utility representative to inquire about participation.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. South Dakota currently has no programs of this type available to federal customers.

Are there energy efficiency programs sponsored by the state government?

No state energy efficiency programs are currently available to federal customers. For information on future opportunities, contact the Governor's Office of Economic Development.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide contracts through GSA (such as Montana-Dakota Utilities) may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.