Clemson, SC Solar Panels

South Carolina’s Solar Energy Tax Credit allows homeowners and businesses to claim 25% of their total solar installation cost as a credit against their state income tax liability. The credit is capped at $3,500 per year and carries a lifetime maximum of $35,000 — or 50% of your annual state tax liability, whichever is less. There is no expiration date on this credit, making it available for 2026 installations and beyond.

Eligible technologies include solar photovoltaic (PV) panels, solar water heaters, and solar space heaters installed on a South Carolina property (primary residence or business). The credit is non-refundable, meaning it can only offset taxes you owe — but any unused portion automatically carries forward for up to 10 years, so you won’t lose the benefit if your tax liability is modest in any given year.

To claim the credit, file Form TC-38 (SCH.TC-38) along with your South Carolina state income tax return. You’ll need to include supporting documentation such as your solar system design, permits, and receipts showing total installation costs. Contact the South Carolina Department of Revenue at dor.sc.gov for the most current form and instructions.

South Carolina law provides a full 100% property tax exemption for solar energy systems installed on residential properties. This means that adding solar panels — which can significantly increase your home’s value — will not raise your property tax bill. The exemption applies to solar PV systems with a capacity of 20 kilowatts (kW) or less, and also covers advanced inverters and battery storage systems that are paired with solar.

Both owned and leased solar systems are eligible for this exemption, making it accessible regardless of how you choose to finance your installation. In most cases, the exemption is applied automatically, so no separate application is required. However, it is a good idea to confirm the process with your county assessor’s office to ensure it has been properly applied to your account.

This exemption provides ongoing annual savings for the life of your solar system. For homeowners in Clemson in areas with higher property tax rates or larger system sizes, the cumulative savings over 20–25 years can be substantial. Visit the South Carolina Energy Office at energy.sc.gov for more information on state-level solar tax incentives.

South Carolina exempts solar energy equipment from the state’s 6% sales tax. This exemption applies at the point of purchase, meaning the savings are immediate and reduce your upfront installation cost without requiring any additional paperwork or tax filing on your part.

For a typical residential solar installation costing between $15,000 and $25,000, the sales tax exemption translates to approximately $800–$1,500 in direct savings. While this may seem modest compared to the state income tax credit, it is an automatic benefit that stacks on top of all other available incentives.

This exemption applies to solar photovoltaic panels, inverters, racking, and other qualifying solar equipment. For more details on eligible equipment and the exemption process, visit the South Carolina Energy Office at energy.sc.gov or consult your solar installer.

South Carolina state law requires all investor-owned utilities with more than 100,000 customers to offer net metering to residential solar customers with systems of 20 kW or smaller. Under net metering, excess electricity your solar panels send to the grid earns you a bill credit that can be applied to future monthly bills. The program is capped at 2% of each utility’s average peak demand over the prior five years. Residents of Clemson are primarily served by Duke Energy, which ended 1:1 net metering in 2021 and now credits excess generation at approximately 2.6–4 cents per kWh.

Because credit rates at most South Carolina utilities are well below the retail electricity rate, pairing your solar system with a battery storage system can be a smart financial move. Storing excess solar energy for self-consumption during peak hours — rather than exporting it to the grid at a discount — can significantly improve your return on investment. Most modern solar batteries include scheduling features that automate this process after initial setup.

Enrollment in a time-of-use (TOU) rate plan is required by most utilities to participate in net metering. Be sure to contact your specific utility before installation to understand all applicable fees, requirements, and current program availability, as terms can change. Use the South Carolina Energy Office’s Energy Saver Tool at solar.sc.gov to find current net metering program details for your utility.

Duke Energy’s PowerPair program offers substantial incentives for residential customers who install a qualifying solar and battery storage system together. The incentive structure provides $0.36 per watt-AC for solar installations up to 10 kW AC, and $400 per kWh for battery storage installations up to 13.5 kWh — for a combined maximum incentive of up to $9,000. This makes PowerPair one of the most valuable battery storage incentives available to homeowners in Clemson served by Duke Energy.

PowerPair is a limited-time, first-come, first-served program, so it is important to submit your application as soon as possible. If you recently installed a qualifying solar and battery system, you must apply within 90 days of your system’s operational date. All installations must be performed by a member of Duke Energy’s approved Trade Ally network to be eligible.

As of March 2026, capacity remains available in the PowerPair program for Duke Energy Carolinas customers under both the Net Metering Bridge (NMB) and Choice (TOU) options. For questions about eligibility, the application process, approved Trade Allies, or incentive processing, email [email protected] or call 1-800-777-3600.

Duke Energy offers ongoing monthly bill credits to residential customers who enroll their home battery storage system in a demand-response program. Known as Power Manager for Duke Energy Carolinas customers and EnergyWise Home for Duke Energy Progress customers, this program allows Duke Energy to manage a portion of your battery’s stored energy during brief periods of high grid demand — called “control events” — which can occur up to 36 times per year.

In exchange for participating, homeowners receive $6.50 per kW of battery capacity each month. The incentive is based on the continuous discharge capacity of your battery and a capability factor. Given the residential interconnection limit of 20 kW, the maximum monthly credit is $91, or up to $1,092 per year. This is a passive, ongoing income stream that requires no action on your part after initial enrollment.

This program is an excellent complement to the PowerPair installation incentive and can meaningfully improve the long-term return on investment of a home battery system for Clemson residents. Contact Duke Energy at 1-800-777-3600 or visit duke-energy.com for enrollment details and current program availability in South Carolina.