Solar Guide

The SC Solar Energy Credit is a state tax credit that helps South Carolina homeowners save money when they install solar energy systems. This incentive allows you to claim a credit equal to 25% of the total costs you pay for purchasing and installing a qualifying solar energy system on your South Carolina home.

The financial benefit is substantial but has limits. You can claim up to $3,500 maximum per solar installation, or 50% of your state tax liability for the year, whichever is less. If your credit amount exceeds $3,500, you can carry the excess forward and use it over the next 10 years. To qualify, your solar system must be certified by the Solar Rating and Certification Corporation or a similar organization endorsed by the State Energy Office, and the system must be fully installed before you can claim the credit.

There are some important considerations for homeowners. The credit only applies to the solar equipment itself – like panels, inverters, controls, and installation costs – but doesn’t include structural elements like roofing or land costs. You’ll need to file Form TC-38 with your state tax return to claim this credit. While there’s no specific deadline mentioned for when you must install your system, you should verify current program availability since solar incentives can change over time.

The South Carolina Property Tax Exemption is a state program that provides complete property tax relief for eligible homeowners who meet specific criteria. This exemption eliminates 100% of property taxes on your primary residence, including both the home and up to one acre of land, which can save homeowners thousands of dollars annually depending on their property’s assessed value.

To qualify for this exemption, you must be a disabled veteran with a total and permanent service-connected disability, a disabled law enforcement officer or firefighter injured in the line of duty in South Carolina, a paraplegic or hemiplegic person (including those with Parkinson’s, Multiple Sclerosis, or ALS causing similar mobility issues), or a Medal of Honor recipient or former Prisoner of War. The property must be your primary residence, and you must own it either solely or jointly with your spouse. You’ll need to provide specific documentation such as VA certificates, physician statements, or official disability determinations depending on your qualifying condition.

Applications must be submitted within two years from the date taxes were paid if you’re seeking a refund for previously paid taxes. The easiest way to apply is through South Carolina’s MyDORWAY online portal, though you can also submit paper applications by mail or in person. Once approved, the exemption continues as long as you meet the eligibility requirements, though you may need to reapply if there are changes in ownership or status. Surviving spouses may also qualify for this exemption under certain conditions, provided they remain unmarried and continue to live in the home.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install solar panels on their homes. The program provides financial incentives to reduce the upfront cost of solar installation while allowing homeowners to sell excess energy back to the grid through net metering.

Qualifying solar systems receive a rebate of $950 per kilowatt (kW) installed, with a maximum rebate of $5,700 per home. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 to help cover installation costs. However, participants must pay a monthly Distributed Generation fee of $10 to cover fixed grid costs.

To be eligible, solar systems must be installed by a Santee Cooper Trade Ally contractor. The rebate application process is handled through the chosen Trade Ally, and rebate payments are typically delivered within 6-8 weeks after final system approval and meter installation. Homeowners should note that while they can monitor their system’s total production through their inverter, Santee Cooper only tracks the excess energy sold back to the grid through a bidirectional smart meter.

Net metering in South Carolina allows homeowners with solar panels to receive credit for the excess electricity they send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill. These credits can then offset the electricity you use when your solar panels aren’t producing enough power, like at night or on cloudy days.

The financial benefits vary significantly depending on your utility company. Some utilities like Dominion Energy offer true 1:1 net metering, meaning you get full retail credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at lower rates of 2.6-4 cents per kWh. Export credit programs from cooperatives like Berkeley Electric pay around 5.9 cents per kWh for all power sent to the grid, while others like Santee Cooper pay 3.8-4.2 cents per kWh for monthly net excess.

Most South Carolina utilities settle accounts monthly rather than annually, and many allow credits to roll over from month to month. However, some utilities like Dominion Energy conduct annual true-ups in November where excess credits are paid out at lower avoided cost rates. Important considerations include Duke Energy’s $30 minimum monthly bill requirement and mandatory time-of-use rates for solar customers, which can affect your overall savings potential.