Bluffton, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to reduce their income tax liability when they install solar energy systems. This credit equals 25% of the costs for purchasing and installing solar equipment in your home, with a maximum credit of $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 annual limit, you can carry forward unused portions for up to 10 years. This incentive applies to solar water heating, space heating/cooling, daylighting, and electricity generation systems installed in South Carolina homes.

South Carolina’s Property Tax Exemption offers homeowners with solar energy systems relief from property taxes on their renewable energy installations. This incentive ensures that adding solar panels to your home won’t increase your property tax burden, even though solar typically adds value to your property.

To qualify, you must own the solar system installed on your property in South Carolina. There is no specific deadline to apply, but you should submit your application through the state’s MyDORWAY online portal or by mail to the South Carolina Department of Revenue. For the fastest processing, the online application is recommended. Remember that if you’re seeking refunds for taxes already paid, claims must be filed within two years from the date taxes were paid, and you’ll need to include paid tax receipts with your application.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their rooftops. Through this utility program, qualifying residential customers can receive a rebate of $950 per kilowatt of installed solar capacity, up to a maximum of $5,700. This 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). Homeowners can also take advantage of Santee Cooper’s Smart Energy Loan Program, which provides on-bill financing up to $40,000 for qualifying customers. Note that participants will be subject to a monthly fee of $10 under the Distributed Generation Rider, which covers fixed costs associated with grid connection. Before making a decision, it’s recommended to consult with a Trade Ally who can help determine the right system size for your home and assist with the rebate application process.

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 rates and 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 1:1 net metering, meaning you get full retail credit for excess energy. Duke Energy requires time-of-use rates and credits excess generation at about 2.6-4 cents/kWh. Santee Cooper credits excess generation at approximately 4 cents/kWh, while some cooperatives like Laurens Electric offer higher export credits (5-8 cents/kWh depending on season).

Important considerations: Most utilities settle accounts monthly rather than annually, meaning unused credits don’t accumulate for a full year. Duke Energy has implemented a $30 minimum monthly bill for solar customers. Traditional 1:1 net metering ended with Duke Energy on June 1, 2021, though it continues with some other utilities. Some providers require specific rate plans (like time-of-use) for solar customers.