Energy Incentive Programs, South Dakota

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Updated April 2015

South Dakota utilities budgeted over $3 million in 2013 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 (BHP) offers prescriptive and custom rebates for energy-efficient electric equipment and measures, as well as technical assistance including energy management, rate savings analysis, and load monitoring. Prescriptive rebates cover specific efficient lighting equipment, motors, variable frequency drives, heat pumps and water heaters. Technologies that may be eligible for custom incentives include energy management and control systems, high-efficiency refrigeration equipment, geothermal heat pumps, industrial and agricultural process equipment and other measures not covered under the prescriptive rebates. 

Otter Tail Power Company offers rebates for lighting retrofits (up to 75% of project cost), new or replacement NEMA premium efficiency motors ($30 to $9,000 per motor), high efficiency air-source ($160/ton) or ground-source ($350/ton) heat pumps, and custom incentives (payment based on demand and energy savings) for a wide variety of energy efficiency measures and equipment.

The Mid-American Energy Advantage program provides rebates for a broad array of energy-efficient products including lighting, heating and cooling equipment, insulation, motors and variable speed drives.  There is also a custom systems incentive.

Montana-Dakota Utilities offers its Commercial Natural Gas Programs, which provide prescriptive rebates of $300 per unit for purchasing and installing high efficiency natural gas furnaces with annual fuel utilization efficiencies (AFUEs) of at least 95%, as well as incentives for custom energy-saving projects. Custom projects require pre-approval.

Xcel Energy’s Lighting Efficiency Rebates program covers qualifying controls and sensors, and LEDs. Contact your Xcel Energy account manager or an energy efficiency specialist at 1-855-839-8862 or for more information. Additionally, the following resources are available to identify and guide energy use reductions: the Business Energy Advisor, the Energy-At-Risk Financial Analysis Tool, the InfoWise energy management tool, and the 30-minute online energy assessment.

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:

  • The Electric Rate Savings program is for customers willing to curtail load by at least 50 kW at Xcel’s request during times of peak electric demand. Contact your Xcel Energy account manager or the Business Solutions Center at 1-800-481-4700 for more information.

  • The Saver’s Switch offers program participants a June to September bill discount of $5 per ton of enrolled air conditioning in exchange for customers allowing the utility to cycle participating air conditioning units on and off for 15 to 20 minute intervals during periods of peak electric demand in those  months.

Montana-Dakota Utilities, in partnership with Constellation Energy, offers the Demand Response Resources Program for commercial and industrial customers with peak electric demand greater than 50 kW who agree to curtail non-critical load during demand response events initiated by the utility. Participants receive capacity payments based on the amount of curtailment commitment (kW) and energy payments based on the amount of energy reduced (kWh) during curtailment events, through Constellation, a third-party demand response aggregator.

Otter Tail Power Company offers the following demand response programs:

  • The Energy Control program offers electric rates 30-50% less than the standard rate to customers who allow Otter Tail to control specific equipment on their system during times of high demand on the electric grid. The program only applies to customers who are signed up for special off-peak electricity prices.

  • The Off-Peak Water Heating programs provide several money-saving options for customers with separately metered water heaters. Customers receive a credit on the monthly bill in exchange for permitting the utility to directly control their electric water heaters for up to 14 hours per day. These programs may be combined with rebates for new electric water heating discussed above.

  • The Deferred Load Rate offers bill savings of up to 30% below the standard electric rates for customers that can employ certain thermal storage systems to shift electric load to off-peak hours.

  • Otter Tail’s Real Time Pricing Rider alternatively credits or charges customers, based upon day-ahead projections of hourly electricity costs, for usage below or above a pre-determined customer baseline load profile Participants, who must have an average monthly peak of 200 kW or greater, should be able to reduce their electricity bills by curtailing load during high cost periods or shifting load to times when prices are lower.

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 in GSA’s Energy Division Library. Federal facilities should contact their account executive to determine the level of each utility's participation.