Solar Guide

The SC Solar Energy Credit is a state tax credit that helps South Carolina homeowners save money when they install solar energy systems. This incentive allows you to claim a credit equal to 25% of the total costs you pay for purchasing and installing a qualifying solar energy system on your South Carolina home.

The financial benefit is substantial but has limits. You can claim up to $3,500 maximum per solar installation, or up to 50% of your state tax liability for the year, whichever is less. If your credit amount exceeds $3,500, you can carry the excess forward and use it over the next 10 years. To qualify, your solar system must be certified by the Solar Rating and Certification Corporation or a similar organization endorsed by the State Energy Office, and the system must be fully installed before you can claim the credit.

There are some important considerations for homeowners. The credit only applies to the solar equipment itself – like panels, inverters, controls, and installation costs – but doesn’t include structural elements like your roof or walls. You’ll need to file Form TC-38 with your state tax return to claim this credit. While there’s no specific deadline mentioned for when this credit expires, it’s always wise to verify current availability when planning your solar installation.

South Carolina’s Property Tax Exemption program provides complete property tax relief for eligible homeowners, including those with solar energy systems. This state tax exemption eliminates 100% of property taxes on your primary residence and up to one acre of land, representing significant annual savings that can range from hundreds to thousands of dollars depending on your property’s assessed value and local tax rates.

To qualify, you must meet specific eligibility criteria such as being a totally disabled veteran, law enforcement officer, or firefighter with service-connected disabilities, or having certain medical conditions like paraplegia or hemiplegia. The program also covers Medal of Honor recipients and former prisoners of war. Your home must serve as your primary residence, and you must own the property either solely or jointly with a spouse. Applications must be submitted within two years from the date taxes were paid if seeking refunds, and you’ll need to reapply if there are changes in ownership or status. The easiest way to apply is through South Carolina’s MyDORWAY online portal, though paper applications and in-person submissions are also accepted.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install rooftop solar panels on their homes. The program provides financial incentives to reduce the upfront cost of solar installation while allowing homeowners to sell excess energy back to the grid through net metering.

Qualifying solar installations receive a rebate of $950 per kilowatt (kW) of installed capacity, with a maximum rebate of $5,700 per system. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 to help cover installation costs. However, participants must pay a monthly Distributed Generation fee of $10 to cover fixed grid costs.

To be eligible, solar systems must be installed by a Santee Cooper Trade Ally contractor. There are no specific deadlines mentioned, but rebate processing takes 6-8 weeks after installation and final acceptance testing. Homeowners should note that while they can monitor energy sold back to the grid through their electric bill, they’ll need access to their inverter’s online monitoring system to track total solar production and personal energy usage.

Net metering in South Carolina allows homeowners with solar panels to receive credit for the excess electricity they send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill. These credits can then offset the electricity you use when your solar panels aren’t producing enough power, like at night or on cloudy days.

The financial benefits vary significantly depending on your utility company. Some utilities like Dominion Energy offer true 1:1 net metering, meaning you get full retail credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at lower rates of 2.6-4 cents per kWh. Export credit programs from cooperatives like Berkeley Electric pay around 5.9 cents per kWh for all power sent to the grid, while others like Santee Cooper pay 3.8-4.2 cents per kWh for monthly net excess.

Most South Carolina utilities require solar customers to be on specific rate schedules, often time-of-use rates that charge different amounts based on when you use electricity. Some utilities like Duke Energy also impose minimum monthly bills around $30, and York Electric Co-op charges an additional $3.30 monthly fee for net metering customers. It’s important to note that Duke Energy ended their 1:1 net metering program in June 2021, so new solar customers receive lower compensation rates for excess generation.