South Carolina

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to receive 25% of the costs for purchasing and installing a solar energy system on their property. This credit applies to solar systems for water heating, space heating, cooling, daylighting, or electricity generation. The maximum credit is $3,500 per installation or 50% of your tax liability for the year, whichever is less.

To qualify, your system must be certified for performance by the Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office. The credit cannot be claimed until installation is complete. If your credit exceeds the $3,500 limit, you can carry forward the unused portion for up to 10 years. This incentive can significantly reduce the overall cost of going solar while helping you transition to clean, renewable energy for your home.

South Carolina’s Property Tax Exemption provides qualifying homeowners with complete exemption from property taxes on their primary residence. This incentive is particularly valuable for veterans with service-connected disabilities, former law enforcement officers and firefighters disabled in the line of duty, paraplegic or hemiplegic individuals, and Medal of Honor or Prisoner of War recipients.

To qualify, homeowners must own their dwelling (solely, jointly with a spouse, or through certain trusts) and have the 4% special assessment ratio for owner-occupied dwellings. Surviving spouses may also be eligible if they remain unmarried and continue to reside in the home. Applications must be submitted through MyDORWAY (South Carolina’s online tax portal) or by mail, and claims for exemptions must be received within two years from the date taxes were paid. Homeowners will need to reapply if there is a change in status or ownership of previously exempted property.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their rooftops. Qualifying residential customers can receive a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,700. Additionally, Santee Cooper provides on-bill financing through their Smart Energy Loan Program for Renewable Energy, allowing eligible homeowners to finance up to $40,000 for their solar installation.

To qualify for the rebate, your solar system must be installed by a Santee Cooper Trade Ally, and a NABCEP certified PV Installation Professional must perform an onsite assessment. Homeowners should be aware that participants in this program are subject to a monthly fee of $10 under Santee Cooper’s Distributed Generation Rider. This fee covers fixed costs associated with the electric system that solar customers continue to use when their systems aren’t producing sufficient energy. After installation and submission of required documentation, Santee Cooper will conduct final acceptance testing before installing a bidirectional smart meter, with rebates typically processed within 6-8 weeks.

Net Metering in South Carolina allows solar panel owners to receive credit for excess electricity they send back to the grid. The program varies by utility company, with each offering different compensation rates and billing structures. When your solar panels produce more electricity than your home uses, this excess power flows back to the grid, and you receive credits on your electric bill.

The financial benefits differ significantly between utilities. Dominion Energy South Carolina offers traditional 1:1 net metering, where each kilowatt-hour (kWh) sent to the grid offsets one kWh of usage. Duke Energy requires time-of-use (TOU) rates and credits excess generation at approximately 2.6-4 cents per kWh. Santee Cooper credits excess generation at about 4 cents per kWh, while some cooperatives like Berkeley Electric value exports at nearly 6 cents per kWh. Most utilities settle accounts monthly with no annual true-up, though Dominion performs a November true-up at a reduced rate of about 3 cents per kWh.

Important considerations for homeowners include Duke Energy’s $30 minimum monthly bill and Dominion’s $14 monthly charge for the required TOU rate. Additionally, Duke Energy ended traditional 1:1 net metering on June 1, 2021. Before installing solar, check with your specific utility for the most current net metering policies, as compensation structures and rates can significantly impact your solar investment’s financial return.