Aiken, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to claim 25% of the costs for purchasing and installing a solar energy system. This credit can be applied to your state income taxes, with a maximum benefit of $3,500 per installation or 50% of your tax liability, whichever is less. If your credit exceeds the $3,500 limit, you can carry forward the excess amount for up to 10 years.

To qualify, your system must be certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office. The credit applies to solar systems for water heating, space heating/cooling, energy-efficient daylighting, heat reclamation, or electricity generation. Important note: The credit cannot be claimed until after the installation is complete, and it only covers equipment directly related to the solar energy system—not structural elements like walls or roofs.

South Carolina’s Property Tax Exemption offers significant financial relief for homeowners with solar energy systems by exempting the value of these systems from property tax assessments. This means when you install solar panels on your home, the increased property value won’t result in higher property taxes, allowing you to enjoy the benefits of solar without additional tax burden.

To qualify, homeowners must complete the PT-401-I form through the MyDORWAY online portal or submit a paper application to the South Carolina Department of Revenue. There’s no specific deadline for initial applications, but claims for exemptions must be received within two years from the date taxes were paid if seeking refunds. Remember that if there’s any change in ownership or status of your property, you’ll need to reapply for the exemption to maintain your tax benefits.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their roofs. Qualifying residential customers can receive a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,700. This significant rebate helps offset the upfront cost of your solar installation, making renewable energy more affordable.

To be eligible, your solar system must be installed by a Santee Cooper Trade Ally (qualified contractor). Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for Renewable Energy, allowing qualified customers to finance up to $40,000 for their solar installation. Note that participants will be subject to a monthly fee of $10 under Santee Cooper’s Distributed Generation Rider, which covers fixed costs associated with grid connection when your solar system isn’t producing enough energy.

Net Metering in South Carolina allows solar panel owners to receive credit for excess electricity they send back to the grid. This 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, that excess power flows back to the grid, and you receive credit 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 sent to the grid offsets one kilowatt-hour you use. Duke Energy requires time-of-use rates and credits excess generation at approximately 2.6-4 cents per kilowatt-hour. Santee Cooper credits excess generation at about 4 cents per kilowatt-hour, while some cooperatives like Laurens Electric offer higher rates (5-8 cents per kilowatt-hour). Most utilities settle accounts monthly with no annual true-up, except Dominion Energy which performs a November true-up at a lower rate.

Important considerations: Duke Energy has implemented a $30 minimum monthly bill, and their traditional 1:1 net metering ended June 1, 2021. Some utilities require specific rate plans (like time-of-use) for solar customers. Credits generated during specific time periods may only offset usage during those same periods with certain utilities. Before installing solar, check with your specific utility company for their current net metering policies, as these can significantly impact your solar investment’s financial return.