Clemson, 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, it’s important to note that this bill was introduced in 2023 and has been sitting in committee since then—it has not been enacted into law and is not currently available.

If passed, the credit would be distributed as five equal annual installments, with unused portions able to be carried forward for up to five years. The credit would be capped at $2.5 million per installation and $2.5 million total across all taxpayers per year, awarded on a first-come, first-served basis. The program would only apply to non-residential solar systems with a capacity of at least 1,900 kilowatts installed on EPA-designated contaminated sites. The bill included a sunset provision for December 31, 2024, which has already passed, meaning even if enacted now, it would require amendment to be applicable to future installations.

South Carolina offers a property tax exemption for solar energy systems installed on residential properties. This exemption means that when you add solar panels to your home, the increased value they bring to your property won’t be included in your property tax assessment. In other words, while your solar installation may increase your home’s market value, you won’t pay higher property taxes because of it.

This exemption applies to both the solar equipment itself and any increase in property value resulting from the installation. The benefit continues for as long as you own the solar system and the property. To claim this exemption, you’ll need to apply through the South Carolina Department of Revenue using form PT-401-I or through their online MyDORWAY system. Applications must be submitted within two years from the date taxes were paid, and you’ll need to provide documentation including your recorded deed and proof that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office.

It’s important to note that this exemption is separate from other property tax exemptions available in South Carolina. If you have questions about how this exemption applies to your specific situation, you can contact the South Carolina Department of Revenue’s Government Services Division or visit any of their service centers for assistance.

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 includes net metering, which allows you to receive credit for excess solar energy your system sends back to the grid. Your bidirectional meter tracks both the energy you use from the grid and the energy you return to it, which appears on your monthly bill.

To participate, you must work with a Santee Cooper-approved Trade Ally installer—only systems installed by these qualified contractors are eligible for rebates. Be aware that participating customers are subject to a $10 monthly Distributed Generation Rider fee, which covers fixed costs for maintaining grid infrastructure that solar customers continue to use when their panels aren’t producing enough energy. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. After your system is installed and all documentation is submitted, allow 6-8 weeks to receive your rebate. Santee Cooper handles the final acceptance testing and meter exchange before your system can begin operating.

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 depends on which utility company serves your home, as each has different policies. Some utilities offer true 1-to-1 net metering (where exported energy offsets your usage 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 benefit varies significantly by utility provider. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning your exported solar energy offsets your usage at full retail value during the same time period. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1-to-1 offsetting within the same time period, but any excess generation is credited at approximately 2.6-4 cents per kWh. Santee Cooper credits net excess generation at 3.8-4.2 cents per kWh depending on season. Electric cooperatives like Berkeley Electric, Laurens Electric, and York Electric have their own structures, with export rates ranging from 4.8 to 8 cents per kWh. Most utilities settle accounts monthly, though Dominion Energy conducts an annual true-up in November where remaining credits are paid out at a lower avoided cost rate.

All solar customers in South Carolina are eligible for their utility’s net metering or net billing program, though some utilities require enrollment in specific time-of-use rate plans. There are no statewide deadlines, but it’s important to note that Duke Energy ended traditional 1-to-1 net metering on June 1, 2021 for new customers. Be aware that some utilities charge additional monthly fees for solar customers—Duke Energy has a $30 minimum monthly bill, Dominion Energy charges a $14 monthly fee, and York Electric adds a $3.30 monthly charge. Understanding your specific utility’s policy is essential for accurately estimating your solar savings.