Aiken, SC Solar Panels

The SC Solar Energy Credit is a proposed state tax credit for businesses and individuals who install large-scale solar systems on contaminated or brownfield sites in South Carolina. This credit would provide 25% of the total cost of the solar installation, including equipment and installation expenses, up to a maximum of $2.5 million per project. The credit is distributed as five equal annual payments, starting the year the system begins operating.

To qualify, the solar system must be nonresidential with a capacity of at least 1,900 kilowatts and must be located on an EPA-designated contaminated site as certified by the South Carolina Department of Health and Environmental Control. The system must be constructed, purchased, or leased and placed in service during the tax year. Any unused credit can be carried forward for up to five years. However, if you claim other state solar credits for the same property, you cannot also claim this credit.

Important: This bill was introduced in January 2023 but has not been enacted into law. It remains in committee and has not been approved. The proposed legislation would have expired on December 31, 2024, though earned credits could continue to be claimed after that date. This incentive is designed specifically for large commercial solar projects on contaminated sites, not for typical residential solar installations. Check with the South Carolina Department of Revenue or a tax professional for current information on available solar incentives.

South Carolina offers property tax exemptions for solar energy systems installed on residential properties. This state-level exemption ensures that adding solar panels to your home won’t increase your property taxes, even though solar installations typically increase your home’s overall value. The exemption applies to the added value that solar equipment brings to your property, allowing you to enjoy the benefits of clean energy without facing higher annual tax bills.

To qualify for this exemption, you must own the solar equipment (leased systems don’t qualify) and use it at your primary residence in South Carolina. You’ll need to apply through the South Carolina Department of Revenue using form PT-401-I or their online MyDORWAY system. Applications must be submitted within two years from the date taxes were paid. You’ll need to provide documentation including your recorded deed, proof that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office, and details about your property. The exemption continues as long as you own the home and the solar system remains in place, though you may need to reapply if there’s a change in ownership or status of the previously exempted property.

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.

To participate, you must work with a Santee Cooper-approved Trade Ally contractor to design and install your system—only installations completed by these qualified contractors are eligible for the rebate. Santee Cooper also offers on-bill financing up to $40,000 through their Smart Energy Loan Program for Renewable Energy, making it easier to afford the upfront costs. The rebate is typically delivered 6-8 weeks after your system passes final inspection and your new bidirectional meter is installed.

Keep in mind that solar customers are subject to a $10 monthly Distributed Generation Rider fee, which helps cover the fixed costs of maintaining the electric grid that you’ll continue to use when your solar panels aren’t producing enough energy. This fee is important to factor into your overall savings calculation. Your Trade Ally can help you complete the rebate application through Santee Cooper’s DocuSign process and ensure your system meets all program requirements.

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 which utility company serves your area. 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 systems that credit exports at lower rates than what you pay for electricity.

The financial benefits depend on your specific utility provider. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning credits earned during peak hours offset peak usage, and off-peak credits offset off-peak usage. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1-to-1 crediting within the same time period during each month, with any excess valued at approximately 2.6-4 cents per kWh. Santee Cooper and York Electric Co-op offer monthly net metering where excess generation is credited at reduced rates (around 3.8-4.8 cents per kWh). Cooperative utilities like Berkeley Electric and Laurens Electric use net billing, crediting all exported energy at rates ranging from 5-8 cents per kWh depending on the season.

Eligibility typically requires installing an approved solar system and enrolling in your utility’s solar program, often with mandatory time-of-use rate plans. Some utilities charge additional monthly fees (ranging from $3.30 to $30) for solar customers. Most utilities settle accounts monthly with no annual true-up, though Dominion Energy conducts an annual reconciliation each November where remaining credits are cashed out at a lower avoided-cost rate. It’s important to note that Duke Energy ended traditional 1-to-1 net metering on June 1, 2021, so systems installed after that date follow the current monthly net metering structure. Understanding your specific utility’s policies is essential for accurately estimating your solar savings.