Columbia, 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 credit equals 25% of the costs for purchasing and installing solar equipment on your home, up to a maximum of $3,500 per installation. If your credit exceeds $3,500, you can carry forward the excess amount for up to 10 years.

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 can only be claimed after installation is complete. The credit is limited to 50% of your tax liability for the year, and applies to solar water heating, space heating/cooling, daylighting, and electricity generation systems. The credit does not include land or structural elements of your home such as walls and roofs.

South Carolina’s Property Tax Exemption offers significant financial relief for homeowners with solar energy systems by exempting these installations from property tax assessments. This means that when you add solar panels to your home, the value they add to your property won’t increase your property tax bill—allowing you to enjoy the benefits of solar energy without the burden of higher taxes.

To qualify for this exemption, homeowners must complete the PT-401-I form through the South Carolina Department of Revenue’s MyDORWAY online portal or submit a paper application. The exemption must be applied for within two years of paying property taxes. Once approved, the exemption remains in effect unless there’s a change in ownership or status of the property. For maximum benefit, homeowners should apply as soon as possible after installing their solar system to avoid paying unnecessary property taxes.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their roofs. 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 for South Carolina homeowners.

To be eligible, your solar system must be installed by a Santee Cooper Trade Ally (qualified contractor). Additionally, Santee Cooper offers on-bill financing through their Smart Energy Loan Program for Renewable Energy, allowing qualified customers to finance up to $40,000 for their solar installation. Homeowners should be aware that participants in this program will be subject to a monthly fee of $10 under Santee Cooper’s Distributed Generation Rider, which covers fixed costs associated with maintaining grid connection when your solar system isn’t producing enough energy. For specific questions about the program, homeowners can email [email protected] or call 843-946-5951.

Net Metering in South Carolina varies by utility company, allowing homeowners with solar panels to receive credit for excess electricity sent back to the grid. Each utility has its own specific program structure, but the general concept is that your solar system’s production can offset your electricity consumption, potentially reducing your monthly bills.

The financial benefits differ significantly between providers. For example, Dominion Energy South Carolina offers 1:1 net metering where each kWh exported receives full retail credit, while Santee Cooper credits excess generation at lower rates ($0.0416/kWh in summer and $0.0384/kWh in non-summer months). Duke Energy requires time-of-use (TOU) rates for solar customers, with excess generation credited at approximately 2.6-4 cents per kWh. Some cooperatives like Berkeley Electric offer fixed export rates ($0.0592/kWh).

Most utilities in South Carolina settle net metering credits monthly rather than annually. This means any excess generation is typically credited to your next bill at the specified rate. It’s important to note that Duke Energy has implemented a $30 minimum monthly bill for solar customers, and their traditional 1:1 net metering ended on June 1, 2021.

Before installing solar, homeowners should carefully review their specific utility’s net metering policy, as the financial return can vary dramatically between service territories. Some utilities require specific rate plans (like time-of-use rates) for solar customers, which affects when your solar production is most valuable. Additionally, excess credits are typically valued at lower rates than retail electricity prices, so sizing your system appropriately for your consumption is important for maximizing financial benefits.