Charleston, 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 would provide a tax credit equal to 25% of the total cost of the solar equipment and installation. However, it’s important to note that this bill was introduced in 2023 and has not been enacted into law—it remains in committee and has not passed.

If enacted, the credit would be distributed as five equal annual installments, with unused portions able to be carried forward for up to five years. The maximum credit per installation would be capped at $2.5 million, and the state would limit total credits to $2.5 million per year on a first-come, first-served basis. The solar system must have a minimum capacity of 1,900 kilowatts AC and be located on EPA-designated contaminated sites. This proposed incentive is designed for commercial-scale projects rather than residential installations, and it cannot be combined with other state solar credits for the same property.

Since this legislation has not been passed and was set to expire on December 31, 2024, homeowners should not expect this credit to be available. This proposed incentive does not apply to typical residential solar installations due to the large system size requirement and contaminated site location restriction.

South Carolina offers a property tax exemption 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 value. The exemption applies to the added value that solar equipment brings to your property, meaning you’ll continue paying property taxes based on your home’s value without the solar system.

To qualify for this exemption, you must own the solar energy system (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 through their online MyDORWAY portal. The application requires documentation including your recorded deed and proof that you’ve been granted the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office. Claims must be submitted within two years from the date taxes were paid, and you may need to reapply if there’s a change in ownership or status of your property. This exemption helps make solar energy more affordable by protecting you from increased property tax bills that would otherwise result from your clean energy investment.

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 sell excess solar energy back to the grid at retail rates, which appears as a credit on your monthly electric bill.

To qualify for this program, you must be a Santee Cooper residential customer and work with one of their approved Trade Allies for installation—only systems installed by these qualified contractors are eligible for rebates. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 to help cover installation costs. After your system is installed and all documentation is submitted, Santee Cooper will conduct final testing and install a bidirectional meter, with rebates typically delivered within 6-8 weeks.

Important considerations: Participants will pay a monthly Distributed Generation fee of $10, which covers fixed costs for maintaining grid connection when your solar system isn’t producing enough energy. This fee is designed to ensure fair cost-sharing for the electric infrastructure you’ll continue to use. Before making your decision, it’s recommended to contact Santee Cooper at [email protected] or 843-946-5951 to understand all program details and how they’ll affect your specific situation.

Net metering in South Carolina allows homeowners with solar panels to receive credits for the excess electricity their system sends to the grid. How this works varies significantly depending on your utility provider. Some utilities offer true 1-to-1 net metering where exported energy offsets your consumption at the same rate, while others use net billing that credits exports at a lower rate than what you pay for electricity.

The financial benefit depends on your specific utility company. For example, Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning your solar credits match your consumption rate during the same time period. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1-to-1 credits within the same period, but excess generation is valued at only 2.6-4 cents per kWh. Cooperative utilities like Berkeley Electric credit exports at around 5.9 cents per kWh, while Santee Cooper credits range from 3.8-4.2 cents per kWh depending on the season.

Most South Carolina utilities settle net metering accounts monthly rather than annually. This means any excess credits you generate are either rolled forward to the next month or paid out at a reduced rate, depending on your utility. Dominion Energy is unique in conducting an annual true-up each November, where remaining credits are cashed out at around 2.8-3.4 cents per kWh and your account resets to zero.

Important considerations include understanding that Duke Energy ended traditional 1-to-1 net metering on June 1, 2021, and now requires time-of-use rates with a $30 minimum monthly bill. Several utilities also require you to switch to a time-of-use rate plan when you install solar, which means your electricity costs will vary based on when you use power. Contact your specific utility provider to confirm current net metering policies and rate structures before installing your solar system.