Bluffton, 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 incentive offers a tax credit equal to 25% of the total cost of the solar equipment and installation. However, this credit is specifically designed for commercial and industrial solar projects with a minimum capacity of 1,900 kilowatts (kW AC), which is significantly larger than typical residential solar systems.

The credit is distributed over time, paid out in five equal annual installments beginning the year the solar system is placed in service. Any unused credit can be carried forward for up to five additional years. The maximum credit per installation is capped at $2.5 million, and the state limits total credits to $2.5 million per year across all applicants on a first-come, first-served basis. Important to note: this bill was introduced in January 2023 but has not been enacted into law. It remains in committee and was set to expire on December 31, 2024, meaning it may not be available.

Because this incentive requires solar installations on EPA-designated contaminated sites and has a minimum system size requirement of 1,900 kW, it is not applicable to residential homeowners. Typical home solar systems range from 5-15 kW, which is far below the threshold for this credit. Additionally, you cannot combine this credit with other state solar incentives for the same property, and systems funded by public money (excluding federal grants or tax credits) are not eligible.

South Carolina offers property tax exemptions for solar energy systems and other renewable energy equipment installed on residential properties. This state-level exemption means that the added value of your solar installation won’t increase your property taxes, allowing you to enjoy the benefits of clean energy without a higher tax bill. The exemption applies to both the solar panels themselves and any associated equipment needed for the system to function.

To qualify, you’ll need to own the property where the solar system is installed and use it as your primary residence. The exemption must be applied for through the South Carolina Department of Revenue, and applications can be submitted online through MyDORWAY (the fastest option), by mail, or in person at a service center. You must apply within two years from the date property taxes were paid if you’re seeking a refund for previous years. Once approved, you’ll need to reapply if there’s a change in ownership or status of the property. This exemption works alongside other property tax benefits you may already receive, helping make solar energy more affordable for South Carolina homeowners.

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 of $5,700. This means a typical 6 kW home solar system could receive the full $5,700 rebate. The program also provides net metering, allowing you to receive credit on your electric bill for excess solar energy your system sends back to the grid.

To qualify for this program, you must be a Santee Cooper residential customer and work with one of their approved Solar Energy Trade Allies for installation. Only systems installed by these certified contractors are eligible for rebates. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers who need help covering upfront costs.

Important considerations include a monthly $10 Distributed Generation Rider fee that applies to all solar customers to cover fixed grid costs. After your system is installed and all documentation is submitted, Santee Cooper will conduct final acceptance testing and install a bidirectional meter. Rebates are typically delivered within 6-8 weeks of final approval. Your solar installer can guide you through the rebate application process using Santee Cooper’s DocuSign system for streamlined processing.

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 exported energy offsets imported energy at the same rate), while others use net billing (where exports are credited at a lower rate than what you pay for electricity).

The financial benefits depend on your specific utility company. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate, though excess credits are settled annually at around 2.8-3.4 cents per kWh in November. Duke Energy (both Progress and Carolina) requires time-of-use rates and provides 1-to-1 crediting within the same time period during your monthly billing cycle, but any net excess generation is valued at only 2.6-4 cents per kWh. Santee Cooper and York Electric Co-op offer monthly net metering where usage is netted against exports, with excess valued at lower rates. Cooperatives like Berkeley Electric and Laurens Electric credit all exported energy at fixed 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 net metering or net billing program. Most Duke Energy customers must switch to a time-of-use rate plan, and some utilities charge additional monthly fees (such as Duke’s $30 minimum bill or Dominion’s $14 monthly charge). It’s important to note that Duke Energy ended traditional 1-to-1 net metering on June 1, 2021, so newer customers receive less favorable export rates. Contact your specific utility provider to understand the exact terms, enrollment process, and any system size limitations that may apply to your home.