Cost to Heat a Home in South Dakota: Gas vs Propane vs Heat Pump
In South Dakota the cheapest heat last winter was natural gas at $10.32 per MMBtu delivered; electric resistance cost $39.83 — EIA prices, October 2025 to March 2026.
· Source: EIA STEO September 2026, Natural Gas Monthly, SHOPP · EPM Table 5.6.A (July 2026 data) · next: EIA Winter Fuels Outlook Oct 6, weekly SHOPP prices from October
On this page: CalculatorTableHow we calculatedSources
Jump to calculator ↓Prefilled with South Dakota's last-winter EIA averages; the second preset applies EIA's national outlook. Per-unit rates only; leave out the fixed monthly charge.
Advanced — efficiencies, gas unit, COP, seasonal load
Sliders scale the prefilled prices to test sensitivity; the numeric fields stay the precise inputs. Presets:
- Cheapest last winter
- Natural gas · $10.32/MMBtu
- Most expensive
- Electric resistance · $39.83/MMBtu
- Natural gas
- $0.98/therm, winter avg
- Propane
- $1.79/gal (state)
- Heating oil
- $3.53/gal (regional)
- Electricity
- 13.59¢/kWh, winter avg
- Heat pump COP basis
- NEEP median, 3.20/2.17/1.90
- Heating degree-days, NOAA state
- 5,532 (Oct 2025–Mar 2026)
- EIA STEO West North Central division HDD
- 5,051 last · 5,424 forecast
- Federal credit
- §25C ended 31 Dec 2025
Why this number
South Dakota paid 13.59¢/kWh for electricity last winter — 10 of 35 on this list of 35 cold-weather states — and $0.98 per therm for gas (4 of 35); propane ran $1.79/gal (4 of 35) and heating oil $3.53/gal (6 of 35). Put on one basis, dollars per million Btu delivered, natural gas was the cheapest heat at $10.32 and electric resistance the dearest at $39.83 — a 30-dollar gap per MMBtu, or about $1,771 over a 60-MMBtu season.
Price basis: South Dakota’s fuel prices are last winter’s measured EIA and SHOPP averages; the this-winter column scales each by EIA’s national STEO change for that fuel — a labelled estimate, not a state forecast.
South Dakota heating cost per MMBtu, fuel by fuel
| Heating option | $/MMBtu delivered, last winter | Season cost at 60 MMBtu | This winter, EIA outlook applied |
|---|---|---|---|
| Natural gas furnace (95% AFUE) | $10.32 | $619 | $9.31 (-10%) |
| Propane furnace (92% AFUE) | $21.28 | $1,277 | $20.28 (-5%) |
| Heating oil boiler (85% AFUE) | $30.00 | $1,800 | $40.36 (+35%) |
| Heat pump at 47°F (COP 3.20) | $12.45 | $747 | $12.77 (+3%) |
| Heat pump at 17°F (COP 2.17, NEEP median 3-ton ducted) | $18.35 | $1,101 | $18.83 (+3%) |
| Heat pump at 5°F (COP 1.90) | $20.96 | $1,258 | $21.50 (+3%) |
| Electric resistance (COP 1.00) | $39.83 | $2,390 | $40.86 (+3%) |
The season column is an illustrative 60 MMBtu of delivered heat; in South Dakota that puts natural gas at $619 and electric resistance at $2,390 for the winter. The this-winter column applies EIA’s national STEO change per fuel to South Dakota’s own price (oil +35% is the large one) — direction, not a state forecast.
The prices behind the table
| Price | Last winter average (Oct 2025–Mar 2026) | Latest published reading | Source and basis |
|---|---|---|---|
| Electricity | 13.59¢/kWh | 15.37¢/kWh (July 2026) | EIA Electric Power Monthly 5.6.A; winter average from the monthly editions |
| Natural gas | $0.98/therm ($10.19/Mcf, 6 of 6 months reported) | $15.26/Mcf (June 2026, shoulder-season price) | EIA Natural Gas Monthly, residential price by state; 1 Mcf = 10.38 therms |
| Heating oil | $3.53/gal | $4.49/gal (week of 2026-03-30) | EIA SHOPP regional average (PADD 2) — SHOPP does not survey this state for heating oil |
| Propane | $1.79/gal | $1.84/gal (week of 2026-03-30) | EIA SHOPP weekly survey, South Dakota, Oct 2025–Mar 2026 average |
South Dakota’s June gas figure ($15.26/Mcf) runs 1.5× its winter average ($10.19) because EIA’s residential price is average revenue per Mcf with the fixed charge folded in; the high-volume winter months are the closest published proxy for the marginal rate this page needs.
What South Dakota’s utilities charge
| Utility (largest by customers) | Residential customers | ¢/kWh (EIA-861 2024) | Resistance $/MMBtu | Heat pump at 17°F $/MMBtu |
|---|---|---|---|---|
| Northern States Power Co - Minnesota | 92,204 | 13.9¢ | $40.74 | $18.77 |
| Adjustment 2024 | 85,708 | 12.4¢ | $36.34 | $16.75 |
| Black Hills Power, Inc. | 60,951 | 14.4¢ | $42.20 | $19.45 |
The statewide 13.59¢ hides a 2.0¢ spread between South Dakota’s largest utilities, worth $5.86 per MMBtu on resistance heat and $2.70 on a heat pump. The ZIP lookup finds yours.
How South Dakota homes are heated
| Main heating fuel | South Dakota homes | US homes |
|---|---|---|
| Natural gas (utility) | 47.2% | 46.8% |
| Electricity | 32.6% | 40.8% |
| Propane (bottled, tank or LP gas) | 15.6% | 4.9% |
| Heating oil or kerosene | 1.4% | 4.1% |
| Wood | 1.2% | 1.4% |
Natural gas heats 47.2% of South Dakota’s 358,552 occupied homes against 46.8% nationally, with electricity at 32.6%, propane at 15.6% and heating oil at 1.4%. That lines up with the table above: natural gas was also South Dakota’s cheapest heat last winter at $10.32 per MMBtu.
What the numbers say about South Dakota
At last winter’s average prices, the cheapest way to heat a home in South Dakota was natural gas at about $10 per million Btu delivered, and the most expensive was electric resistance at $40 — a 3.9× spread between the two columns. Gas beat a cold-climate heat pump at 17°F (COP 2.17) by $8.04/MMBtu, and at 47°F (COP 3.2, $12.45) the heat pump still trails. At South Dakota’s winter rates the economic balance point lands above 47°F (COP 3.86 needed against 3.20 available), so the furnace is cheaper at every rated temperature. SHOPP does not survey South Dakota for heating oil, so the table uses the PADD 2 regional average of $3.53/gal, and EIA’s national +35% oil outlook would lift that to about $40/MMBtu. Propane averaged $1.79/gal in the state survey, with a national -5% outlook for this winter.
Heating degree-days: South Dakota’s own figure and the EIA division forecast
South Dakota itself logged 5,532 population-weighted heating degree-days from October 2025 to March 2026 (NOAA Climate Prediction Center state series, base 65°F), against 3,500 for the contiguous US. The month-by-month table below is a different, coarser series — EIA STEO West North Central census division degree-days, the only one with a forecast for the coming winter; it groups South Dakota with its neighbours and is not a South Dakota figure:
| Last winter (actual) | HDD | This winter (STEO forecast) | HDD |
|---|---|---|---|
| Oct 2025 | 271 | Oct 2026 | 404 |
| Nov 2025 | 704 | Nov 2026 | 772 |
| Dec 2025 | 1,179 | Dec 2026 | 1,135 |
| Jan 2026 | 1,355 | Jan 2027 | 1,273 |
| Feb 2026 | 877 | Feb 2027 | 1,030 |
| Mar 2026 | 664 | Mar 2027 | 809 |
| Oct–Mar total | 5,051 | Oct–Mar total | 5,424 |
January in the EIA West North Central census division (the coarse series that groups South Dakota with its neighbours) averaged about 21°F last winter (65°F minus degree-days per day) and is forecast at 24°F for January 2027, a season move of +373 degree-days. Degree-days set how much heat South Dakota needs, the table above sets the price per unit, and the bill jump calculator multiplies the two.
Where the heat pump crosses over in South Dakota
At last winter’s averages of 13.59¢/kWh and $0.98/therm, a heat pump beats a 95% gas furnace whenever its COP exceeds 3.86. South Dakota’s economic balance point on the NEEP median curve is above 47°F (COP 3.86 needed against 3.20 available), so the furnace is cheaper at every rated temperature; the crossover tool runs seven named units at South Dakota’s prices and the dual-fuel calculator turns the answer into a changeover setting.
From October 6 the EIA Winter Fuels Outlook adds household expenditure by region and the weekly SHOPP survey restarts, giving South Dakota fresh state propane and heating-oil readings on the weekly tracker .
Frequently asked questions
What is the cheapest way to heat a home in South Dakota?
On last winter’s EIA average prices, natural gas at about $10.32 per million Btu delivered, against a cold-climate heat pump at $18.35 and propane at $21.28. South Dakota’s ranking uses a 95% gas furnace, 92% propane furnace, 85% oil boiler and a heat pump at COP 2.17; it is per unit of heat, so South Dakota’s fixed monthly charges and equipment prices sit outside it.
Is a heat pump cheaper than gas in South Dakota?
At South Dakota’s last-winter averages of 13.59¢/kWh and $0.98/therm, a heat pump needs a COP above 3.86 to beat a 95% furnace. Against South Dakota’s required COP 3.86, the NEEP medians (3.20/2.17/1.90 at 47/17/5°F) mean the heat pump loses at every rating point in South Dakota; the balance point is above 47°F (COP 3.86 needed against 3.20 available), so the furnace is cheaper at every rated temperature.
How much will heating oil and propane cost in South Dakota this winter?
Nobody publishes a South Dakota forecast; applying EIA’s September STEO national changes (+35% oil, -5% propane) to South Dakota’s last-winter $3.53 and $1.79 per gallon gives roughly $4.75 and $1.71 — the ’this winter’ column. South Dakota’s weekly SHOPP readings resume in October; the Winter Fuels Outlook (October 6) adds household expenditure on top.
Where do the South Dakota prices on this page come from?
13.59¢/kWh is the EIA Electric Power Monthly average for South Dakota over the October 2025–March 2026 editions (15.37¢ in July 2026); the share of homes on each heating fuel is Census ACS 2019–2023 5-year table B25040; $10.19/Mcf is the Natural Gas Monthly winter average (6 months), converted at 10.38 therms per Mcf; oil $3.53 and propane $1.79 per gallon are SHOPP season averages, regional or national where marked; degree-days are the STEO West North Central series. Only the ’this winter’ column is an estimate.
How we calculated this
Worked for South Dakota at last winter’s averages: gas 10 × $0.98 ÷ 0.95 = $10.32/MMBtu; propane 10 × ($1.79 ÷ 0.91452) ÷ 0.92 = $21.28; oil 10 × ($3.53 ÷ 1.385) ÷ 0.85 = $30.00; resistance 293.07 × 0.1359 = $39.83; heat pump $39.83 ÷ 2.17 = $18.35. The this-winter column multiplies each by EIA’s national STEO change for that fuel (electricity ×1.026, gas ×0.903, propane ×0.953, oil ×1.345).Sources: U.S. Energy Information Administration (EIA) electricity rates · DSIRE incentive records · public IRS/OBBBA guidance. Figures are modeled estimates, not quotes or tax advice. See our methodology.
Where to go next
- Winter heating cost hub: gas vs propane vs oil vs electric — The national table, the arithmetic behind every row here, and all {len(COLD)} state pages.
- Gas vs heat pump heating cost — The COP a heat pump needs to beat gas at $0.98/therm.
- Propane vs heat pump cost — Propane at $1.79/gal against a heat pump at 13.59¢/kWh.
- Electric vs gas heat cost — Resistance heat versus gas across every state with a published gas price.
- Propane vs electric heat cost — Propane at $1.79/gal against resistance strips at 13.59¢/kWh.
- Heating oil and propane prices by state (weekly tracker) — Every SHOPP weekly reading behind South Dakota’s oil and propane figures, with season lows, highs and trend lines.
- Heat pump crossover temperature — Seven named NEEP units at 13.59¢ and $0.98/therm — South Dakota needs COP 3.86 to beat gas.
- Dual-fuel switchover calculator — Turns South Dakota’s balance point (above 47°F (COP 3.86 needed against 3.20 available)) into a thermostat changeover setting.
- Heat pump sizing estimator — South Dakota sits in IECC zone 6A; a January mean near 21°F is the design context for capacity.
- Why is my electric bill so high? — Splits a South Dakota bill jump into weather (5,051 degree-days last winter), rate and usage.
- Solar panel cost in South Dakota — The same 15.37¢/kWh July rate driving payback, utilities and rate history for South Dakota.
- Cost to run a space heater in South Dakota — 1,500 W at South Dakota’s winter rate and degree-days — the per-hour and per-winter figure for one room.
- Cost to run a heat pump in South Dakota — 3,500 W at South Dakota’s winter rate and degree-days — the per-hour and per-winter figure for one room.
- Cost to run a ductless mini-split in South Dakota — 2,000 W at South Dakota’s winter rate and degree-days — the per-hour and per-winter figure for one room.
- Cost to heat a home in Wyoming — Cold-state neighbour on this list: cheapest heat there was natural gas at $12.63/MMBtu.
- Cost to heat a home in New Hampshire — Cold-state neighbour on this list: cheapest heat there was natural gas at $20.00/MMBtu.