Clemson, SC Solar Panels

South Carolina’s Solar Energy Tax Credit (Form TC-38) allows homeowners in Clemson to claim 25% of their total solar installation cost against their state income tax liability. The credit is capped at $3,500 per year, with 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 fully available for 2026 installations and beyond.

If you cannot use the full credit in a single tax year, any unused portion carries forward to the next tax year for up to 10 years. This is especially helpful for homeowners whose annual state tax bill is lower than $3,500. Note that the credit is non-refundable — it can reduce your tax liability to zero, but you will not receive a refund check for any excess amount.

To claim the credit, file Form TC-38 (SCH.TC-38) along with your South Carolina state income tax return. You will need supporting documentation such as your solar system design, permits, and receipts showing total installation costs. The credit applies to solar PV panels and solar water heaters. Download the official form at the SC Department of Revenue website.

South Carolina offers a 100% property tax exemption for solar energy systems, meaning the added value that a solar installation brings to your home is completely excluded from your property tax assessment. This exemption applies to solar PV systems with a capacity of 20 kilowatts (kW) or less, and it also covers advanced inverters and battery storage systems that are paired with solar — a significant benefit for homeowners adding a battery backup system.

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. This means you can enjoy the full financial and energy benefits of going solar without worrying about a higher property tax bill each year.

For a typical home solar installation valued between $15,000 and $25,000, this exemption can save homeowners in Clemson hundreds of dollars annually in property taxes over the life of the system. Combined with the state’s 25% income tax credit, this exemption makes South Carolina one of the more solar-friendly states in the Southeast.

South Carolina provides a sales tax exemption on the purchase of solar energy equipment, exempting it from the state’s standard 6% sales tax rate. This savings is applied at the point of purchase, meaning you do not need to file any additional paperwork to claim it — the exemption is built into the transaction when you buy qualifying solar equipment through an approved installer.

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, upfront savings. This makes solar more affordable from day one, before any tax credits or rebates are even applied.

Note: Some sources have reported conflicting information about this exemption’s current status. We recommend confirming with your solar installer or the South Carolina Department of Revenue before finalizing your purchase to ensure the exemption applies to your specific equipment and installation.

South Carolina law requires investor-owned utilities with more than 100,000 customers to offer net metering for residential solar systems up to 20 kW. Under net metering, when your solar panels produce more electricity than your home uses, the excess energy is sent to the grid and you receive a credit on your electric bill. However, the specific credit rates and terms vary significantly by utility, and enrolling in a Time-of-Use (TOU) rate plan is typically required to qualify. The statewide program cap is set at 2% of each utility’s peak capacity.

Duke Energy, which serves Clemson, credits excess generation at approximately 2.6–4 cents per kWh, with remaining credits paid out to the customer each March. Electric cooperatives offer monthly netting with excess credits at roughly 3.8–5.9 cents per kWh.

It is important to understand that South Carolina’s net metering terms — particularly the lower avoided-cost true-up rates — are less favorable than full retail net metering offered in some other states. Before installing solar, carefully review your specific utility’s net metering tariff and rate plan requirements. You can find utility-specific program details using the EnergySaver Tool at EnergySaver.SC.GOV or by contacting your utility directly.

Duke Energy’s PowerPair program is one of the most valuable solar and battery storage incentives available to homeowners in Clemson served by Duke Energy. The program offers $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. Solar and battery storage must be installed together to qualify for the full incentive.

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) rate options. PowerPair is a limited-time, first-come, first-served program, so it is important to submit your application as soon as possible after installation. You must apply within 90 days of your system’s operational date, and all installations must be performed by a member of Duke Energy’s approved Trade Ally network to be eligible.

This program is particularly attractive because it provides a meaningful financial incentive for battery storage at a time when no state-level battery storage rebate exists in South Carolina and the federal battery ITC has expired. For questions about eligibility, the application process, or to find an approved Trade Ally contractor, email [email protected] or call 1-800-777-3600.

Duke Energy offers ongoing monthly bill credits to residential customers in Clemson 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.

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 — Duke Energy handles the brief discharge events automatically. This program pairs especially well with the PowerPair incentive, allowing you to earn an upfront rebate on your battery installation and then continue earning monthly credits for years afterward.

Enrollment in this program is separate from the PowerPair application. Contact Duke Energy at [email protected] or call 1-800-777-3600 to learn more about eligibility requirements and how to enroll your battery system.