South Carolina Solar Panels

The SC Solar Energy Credit is a proposed state tax credit for businesses and individuals who install large-scale solar energy systems on contaminated or brownfield sites in South Carolina. This bill would provide a tax credit equal to 25% of the total cost of the solar equipment and installation. However, it’s important to note that this legislation was introduced in 2023 and has not been enacted into law—it remains in committee and has not passed.

If enacted, the credit would be distributed as five equal annual installments, with unused portions able to be carried forward for up to five years. The maximum credit per installation would be capped at $2.5 million, with a statewide annual limit of $2.5 million total across all taxpayers. To qualify, the solar system must be nonresidential with a minimum capacity of 1,900 kilowatts AC and must be located on EPA-designated contaminated sites. The property must remain in service in South Carolina, or the remaining credit installments would be forfeited. This proposed incentive cannot be combined with other state solar credits for the same property, and systems funded by public money (excluding federal grants or tax credits) would not be eligible.

South Carolina offers a property tax exemption for solar energy systems installed on residential properties. This exemption means that when you add solar panels to your home, the increased value they bring to your property won’t be included in your property tax assessment. While your home’s value increases with solar, you’ll continue paying property taxes based on your home’s value without the solar system.

To qualify for this exemption, you’ll need to own the solar energy system (leased systems typically don’t qualify) and use it at your primary residence. The exemption applies to the solar panels, inverters, batteries, and related equipment that make up your solar energy system. You’ll need to apply through the South Carolina Department of Revenue using form PT-401-I, which can be submitted online through MyDORWAY (the fastest option), by mail, or in person at a service center. Applications must be submitted within two years from the date property taxes were paid, and you’ll need to provide documentation such as your recorded deed and proof that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office.

This exemption remains in effect as long as you own and operate the solar system at your primary residence. If there’s a change in ownership or status of the property, you’ll need to reapply. The financial benefit varies based on your home’s location and the value of your solar installation, but it can result in significant savings over the lifetime of your system by preventing your property tax bill from increasing due to the added value of solar.

The Santee Cooper EmpowerSolar program helps residential customers install solar panels on their homes by offering a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum rebate of $5,700. This means a typical 6 kW home solar system would qualify for the full $5,700 rebate. The program also allows you to sell excess solar energy back to the grid through net metering, which appears as a credit on your monthly electric bill. Your solar installer must be a Santee Cooper Trade Ally for your system to qualify for the rebate.

There are a few important considerations before you decide to go solar with this program. You’ll pay a monthly Distributed Generation fee of $10, which covers the fixed costs of maintaining your connection to the electric grid for times when your solar panels aren’t producing enough energy. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. After your system is installed and all documentation is submitted, allow 6-8 weeks to receive your rebate. Santee Cooper will install a bidirectional smart meter to track both the energy you use from the grid and the excess energy you send back.

Net metering in South Carolina allows homeowners with solar panels to receive credit for the excess electricity their system sends back to the power grid. How this works varies significantly depending on your utility provider. Some utilities offer true 1-to-1 net metering (where each kilowatt-hour you export offsets one kilowatt-hour you import), while others use net billing (where exports are credited at a lower rate than what you pay for electricity).

The financial benefit depends on your specific utility company. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning your solar credits directly offset your electricity usage on a kilowatt-hour basis. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1-to-1 offsetting within the same time period, but excess generation is credited at only 2.6-4 cents per kilowatt-hour (note that 1-to-1 net metering ended June 1, 2021 for new Duke customers). Cooperatives like Santee Cooper, York Electric, and Berkeley Electric have varying approaches—some offer monthly netting with excess credits at reduced rates (around 3.8-5.9 cents per kilowatt-hour), while others credit all exports at fixed rates ranging from 5-8 cents per kilowatt-hour depending on the season.

Eligibility typically requires installing an approved solar system and enrolling in your utility’s net metering or net billing program. Most utilities require you to switch to a time-of-use rate structure when you add solar. Important considerations include minimum monthly charges (Duke Energy has a $30 minimum bill, Dominion charges $14 monthly for their solar rate), and how excess credits are handled—some utilities allow credits to roll over month-to-month indefinitely, while others conduct annual true-ups where remaining credits are paid out at lower avoided-cost rates or reset to zero. Before installing solar, contact your specific utility to understand their current net metering policy, as rules and rates can change over time.