State guide

Heat Pump Water Heaters in South Dakota

Heat pumps make financial sense in South Dakota. Estimated savings: $523/yr vs a standard electric tank.

$523/yr savings/4.6 yr payback/1 rebate program/14.3¢/kWh (21% below avg)

Running cost Rebates Best fits

Score breakdown: 46/100

Savings

32/55

Rebates

4/20

Climate

4/15

Install

6/10

RatingPlate Score. Based on EIA energy prices, ENERGY STAR data, state rebate programs, and permit research. Not a government rating or purchasing recommendation. FAQ

South Dakota electricity is 21% below the national average. Here's what that means for heat pump operating costs.

Running cost in South Dakota

At South Dakota's 14.3¢/kWh electricity rate, the most efficient heat pump water heater saves an estimated $523 per year compared to a standard electric tank.

South Dakota electricity

14.3¢

per kWh (EIA, 12-month avg. through Aug 2026)

US average

18.0¢

per kWh

Best HP annual cost

$119

A. O. Smith HPTS-50-2

Electric resistance

$643

~4,500 kWh/yr baseline

Colder inlet water (47°F annual average, 34°F in winter) means the heat pump works harder than DOE test conditions assume (58°F). Real-world efficiency will be slightly lower than rated UEF, and winter operating costs will be higher than the annual average.

Heat pump vs gas tank in South Dakota

At South Dakota prices (14.3¢/kWh electricity, $1.02/therm gas), a heat pump costs about $54 less per year to run than a standard gas tank, on the same DOE rated hot water load. See replacing a gas water heater in 2026 and all 50 states compared.

Heat pump

$122/yr

855 kWh/yr (median 50-gal)

Gas tank

$176/yr

173 therms/yr (UEF 0.64)

Difference

$54/yr

heat pump cheaper

Both use the DOE medium draw test load (55 gallons a day). Gas price: EIA, 12-month avg. through Aug 2026. Replacing gas with a heat pump also means adding a 240V circuit (or choosing a 120V model) and a condensate drain, and the federal HEAR rebate no longer covers gas replacements.

Why South Dakota changes the call

01Energy cost

South Dakota electricity is 21% below the national average. That directly affects how much a heat pump saves compared to a standard electric tank.

02Climate impact

Incoming water averages 47°F annually and drops to about 34°F in winter. Colder water means the heat pump works harder and real efficiency is slightly lower than rated.

03Available incentives

State and utility rebates can significantly change the payback period. Check what's currently available before finalizing your decision.

Rebates in South Dakota

South Dakota has 1 rebate program as of November 2026.

The federal $2,000 tax credit (IRA Section 25C) expired December 31, 2025. State and utility rebates listed below may still be available. Verify current status at the links provided.

Black Hills Energy Heat Pump Water Heater Rebate

$250 per unit

Who: Black Hills Energy (South Dakota and Northeast Wyoming electric)
Eligibility: Black Hills Energy South Dakota electric residential customer. ENERGY STAR rated. Work completed between January 1 and December 15, 2026.
https://blackhillsenergy.com/efficiency-and-savings/residential-rebates/south-dakota-electric-rebates

Install requirements in South Dakota

Electrical

Dedicated 240V, 30A circuit (most models). Some newer 120V plug-in models exist but most residential units require 240V. Check the unit's nameplate for exact requirements.

Condensate drain

Heat pump water heaters produce condensate during operation. A condensate drain line to an approved location (floor drain, condensate pump, or exterior) is required.

Air space

Approximately 700 cubic feet of surrounding air (roughly a 10x10x7-foot room). The heat pump extracts heat from surrounding air. Insufficient air volume reduces efficiency and can cause the unit to underperform. Some manufacturers allow ducting to supplement air supply in smaller spaces.

Noise

Heat pump water heaters produce operational noise similar to a window AC unit (45-55 dB). Consider placement away from bedrooms.

Best fits for South Dakota

A smaller set of representative fits using South Dakota's 14.3¢/kWh rate. Curated to show different trade-offs instead of listing every published model on every state page. See the full heat pump lineup.

Lowest running cost

Bradford White

RE2HP50-1NCTT

Lowest annual bill at this state's electricity rate.

$119/yr 45 gal UEF 3.89 64.125" tall

Best efficiency

GE Profile

PH80S10BPY01

Highest UEF in the published lineup.

$161/yr 80 gal UEF 4.40 76.375" tall

50-gallon sweet spot

A. O. Smith

HPTS-50-2

Common replacement size for 1 to 3 people.

$119/yr 46 gal UEF 3.80 63" tall

Large-household pick

Noritz

NHP120

Higher first-hour rating for heavier simultaneous demand.

$209/yr 109 gal UEF 3.38 85" tall

Tight-space pick

Bradford White

RE2H50S

Shortest cabinet among the published options.

$135/yr 45 gal UEF 3.44 59.1875" tall

Prefer to buy online? The 45-gallon Rheem PROPH50 T2 RH400-30 is a heat pump available on Amazon.

Check price and availability: Rheem PROPH50 T2 RH400-30 on Amazon (paid link)

Common questions: South Dakota

Is a heat pump water heater worth it in South Dakota?

Yes. South Dakota scores C on RatingPlate's analysis, with estimated savings of $523 per year compared to a standard electric tank. Payback on the higher upfront cost is roughly 4.6 years before rebates.

What rebates are available for heat pump water heaters in South Dakota?

South Dakota has 1 rebate program. South Dakota declined federal IRA HEAR funding, so those rebates are not available here. Verify utility program amounts and eligibility at the links in the rebates section above.

How much does a heat pump water heater cost to run in South Dakota?

At South Dakota's electricity rate of 14.3 cents per kWh, the most efficient heat pump water heater costs about $119/yr to run. A standard electric tank costs about $642 per year.

Do I need a permit for a heat pump water heater in South Dakota?

South Dakota does not have unusual state-level requirements beyond standard plumbing and mechanical permits. Check with your local building department for jurisdiction-specific rules.

What is the payback period for a heat pump water heater in South Dakota?

Without rebates, the payback period in South Dakota is approximately 4.6 years based on $523 in annual savings versus a standard electric tank. With available rebates, payback could be significantly shorter.

Your next click

All heat pump modelsCompare specs across brands Back to homepageCompare other types or find a specific model Lowest cost: A. O. Smith$119/yr in South Dakota Sizing guideWhat size do you need? Replacement cost guideEquipment, labor, and hidden costs Heat pump vs gas tanklessCompare technologies across fuel types

Sources

Electricity and natural gas rates: U.S. Energy Information Administration, residential sector (EIA, 12-month avg. through Aug 2026).

Rebate data compiled from state energy offices, utility program pages, DSIRE, and ENERGY STAR. Rebate amounts and eligibility change frequently. Verify at listed program URLs.

Inlet water temperatures estimated from NOAA climate normals using the Burch-Christensen mains water temperature model (NREL).

Model specifications from ENERGY STAR certified product data and manufacturer spec sheets.

Page updated November 1, 2026. Data freshness varies by source.

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