Solar Guide

The SC Solar Energy Credit is a state tax credit that helps South Carolina homeowners save money when they install solar panels or other qualifying renewable energy systems. This incentive allows you to claim a credit equal to 25% of the total costs you pay for purchasing and installing your solar energy system, including equipment like controls, tanks, pumps, and heat exchangers that are used directly for the solar system.

The financial benefit is substantial but has limits. You can claim up to $3,500 per facility, or 50% of your state tax liability for the year, whichever is less. If your credit amount exceeds $3,500, you can carry the remaining credit forward for up to 10 years to use against future tax bills. To qualify, your solar system must be installed and completed at your South Carolina home, and it must be certified for performance by the Solar Rating and Certification Corporation or a similar organization endorsed by the State Energy Office. You’ll need to file Form TC-38 when claiming this credit on your state tax return.

South Carolina’s Property Tax Exemption program provides complete property tax relief for qualifying homeowners in specific circumstances. This state-level exemption eliminates 100% of property taxes on your primary residence, which can save homeowners thousands of dollars annually depending on their home’s assessed value and local tax rates.

To qualify for this exemption, you must meet very specific eligibility requirements that fall into distinct categories: disabled veterans with 100% permanent service-connected disabilities, disabled law enforcement officers or firefighters injured in the line of duty in South Carolina, individuals with paraplegia or hemiplegia (including those with Parkinson’s, Multiple Sclerosis, or ALS causing similar mobility issues), or Medal of Honor recipients and Prisoners of War. The property must be your primary residence, and you must own it either solely or jointly with a spouse. Surviving spouses may also qualify under certain conditions as long as they remain unmarried and continue living in the home.

Applications must be submitted within two years from the date taxes were paid if you’re seeking a refund for previous years. You can apply online through South Carolina’s MyDORWAY system, which is the fastest option, or submit paper applications by mail or in person. Required documentation varies by category but typically includes medical certifications, VA disability ratings, recorded deeds, and proof that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office. The exemption also extends to up to two vehicles for qualifying disabled veterans and other eligible individuals.

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 Santee Cooper Trade Allies (approved contractors). 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 sell excess energy back to the utility, Santee Cooper does not monitor the solar system’s performance – customers need to use their inverter’s monitoring system to track total energy production and 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 during 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 receive full retail credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at reduced 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 net excess generation.

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.