Clemson, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to reduce their state income tax liability when they install a solar energy system. This incentive provides a credit equal to 25% of the costs for purchasing and installing a solar energy system in your home. The credit is capped at $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 nonprofit 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 systems for water heating, space heating/cooling, energy-efficient daylighting, heat reclamation, or electricity generation.

South Carolina’s Property Tax Exemption offers homeowners with solar energy systems relief from property taxes. This incentive ensures that the added value of your solar installation won’t increase your property tax burden, making solar more affordable in the long run.

The exemption applies to 100% of the value added by qualifying renewable energy systems, including solar panels. To qualify, you must own the property and have a properly installed solar system. There’s no expiration date on this benefit, but you must apply through the South Carolina Department of Revenue’s MyDORWAY portal or by submitting form PT-401-I. For fastest processing, the online application is recommended.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their properties. Through this utility program, qualifying residential customers can receive a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,700. This significant rebate helps offset the upfront cost of installing a solar energy system, making renewable energy more accessible to South Carolina residents.

To be eligible, homeowners must use a qualified Santee Cooper Trade Ally for installation, as only systems installed by these certified contractors qualify for rebates. Additionally, participants should be aware that a monthly fee of $10 will apply under Santee Cooper’s Distributed Generation Rider. For those needing financing assistance, Santee Cooper offers on-bill financing through their Smart Energy Loan Program for Renewable Energy, which provides loans up to $40,000 for qualifying customers. After installation and documentation submission, homeowners should allow 6-8 weeks for rebate processing.

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 credit rates and billing structures. When your solar panels produce more electricity than your home uses, that excess energy flows back to the grid, and you receive credits 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 approximately 2.6-4 cents per kWh. Santee Cooper credits excess generation at about 4 cents per kWh, while some cooperatives like Laurens Electric offer higher rates (5-8 cents per kWh depending on season).

Most utilities settle accounts monthly rather than annually, meaning your excess credits typically don’t accumulate for a full year. Dominion Energy is an exception, with an annual true-up in November at a lower rate (approximately 2.8-3.4 cents per kWh). Duke Energy customers should note there’s a $30 minimum monthly bill, and their traditional 1:1 net metering ended June 1, 2021.

To participate, you’ll need to have a properly installed and connected solar system that meets your utility’s technical requirements. Some utilities like Duke and Dominion require specific rate plans (time-of-use) for solar customers. Before installing solar, it’s recommended to contact your specific utility to understand their current net metering policies, as these programs can change over time.