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South Dakota

South Dakota

Incentives/Policies for Renewables & Efficiency

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Renewable, Recycled and Conserved Energy Objective   

Last DSIRE Review: 08/27/2014
Program Overview:
State: South Dakota
Incentive Type: Renewables Portfolio Standard
Eligible Efficiency Technologies: Unspecified Technologies
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, CHP/Cogeneration, Hydrogen, Electricity Produced from Waste Heat , Anaerobic Digestion
Applicable Sectors: Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative
Standard:Goal: 10% by 2015
Technology Minimum:No
Credit Trading:No
Web Site:
Authority 1:
Date Enacted:
SDCL § 49-34A-101 et seq.
2/21/2008 (subsequently amended)
Authority 2:
Date Enacted:
SDCL § 49-34A-94 et seq.
2/28/2006 (subsequently amended)
Authority 3:
Date Enacted:
Docket RM11-001 Final Rules

In February 2008, South Dakota enacted legislation (HB 1123) establishing an objective that 10% of all retail electricity sales in the state be obtained from renewable and recycled energy by 2015. In March 2009, this policy was modified by allowing “conserved energy” to meet the objective. The objective applies to all retail providers of electricity in the state. However, as a voluntary objective (as opposed to a mandatory standard), there are no penalties or sanctions for retail providers that fail to meet the goal. Final rules related to RECs, energy conservation measurements, and reporting requirements (Docket RM11-001) were adopted in December 2011, effective January 2012.

Eligible Technologies

Qualifying electricity includes that produced from wind, solar, hydroelectric, biomass* and geothermal resources, and electricity generated from currently unused waste heat from combustion or another process that does not use an additional combustion process and that is not the result of a system whose primary purpose is the generation of electricity. Hydrogen generated by any of the preceding resources is eligible. 


For renewable and recycled energy, the objective is measured by qualifying megawatt-hours (MWh) delivered at retail or by certificates representing credits purchased and retired to offset non-qualifying retail sales. In the case of conserved energy, the objective will be measured by methods established by the South Dakota Public Utilities Commission (PUC).In addition to meeting the technology eligibility criteria, electricity must also meet the PUC’s rules for tracking, recording and verifying renewable energy credits (RECs). Both in-state and out-of-state facilities are eligible to generate qualifying RECs.

Cost Mitigation Measures

For the purpose of calculating the amount of electricity needed to meet the objective, retail providers may deduct from their baseline retail sales the proportion of electricity obtained from hydroelectric facilities with an in-service date before July 1, 2008. Municipal and cooperative utilities that receive wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate their resources to meet the objective. Before using any renewable, recycled or conserved energy after July 1, 2008 to meet the objective, retail providers or their generation suppliers must evaluate whether the use of new renewable and recycled energy is cost-effective and reasonable, considering "other electricity alternatives."

Public Service Commission Reports

Beginning July 1, 2009, retail providers must report annually to the PUC on their attainment status, steps taken to meet the objective, and any challenges or barriers they have encountered. This report must include (1) information regarding qualifying electricity delivered and renewable and recycled energy certificates purchased and retired as a percentage of annual retail sales, (2) the amount of conserved energy as a percentage of annual retail sales, and (3) a brief narrative report that describes steps taken to meet the state renewable, recycled, and conserved energy objective over time and identifies any challenges or barriers encountered in meeting the objective. Reporting is required through 2017.

* Eligible biomass includes the following resources: agricultural crops, wastes, and residues; wood and wood wastes; animal and other degradable organic wastes; municipal solid waste; and landfill gas.

  Brian Rounds
S.D. Public Utilities Commission
Capitol Building, 1st Floor
500 East Capitol Avenue
Pierre, SD 57501
Phone: (605) 773-3201
Fax: (866) 757-6031
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.