Columbia, SC Solar Panels

South Carolina’s Solar Energy Tax Credit allows homeowners 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 can be carried forward for up to 10 years, with a lifetime maximum benefit of $35,000 — or 50% of your annual state tax liability, whichever is less. This makes it one of the most generous state-level solar incentives in the Southeast.

Eligible technologies include solar photovoltaic (PV) panels, solar water heaters, solar space heaters, and small hydroelectric systems. The system must be installed on a property located in South Carolina — either your primary residence or a business property. Because the credit is non-refundable, it can only offset taxes you actually owe; however, any unused portion rolls forward automatically each 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. There is no expiration date on this credit, so it remains available for 2026 and beyond.

South Carolina law provides a full (100%) property tax exemption for solar energy systems installed on residential properties. This means that even though adding solar panels increases the market value of your home, that added value will not be included in your property’s assessed value for tax purposes — so your property tax bill stays the same after going solar.

The exemption applies to solar systems with a capacity of 20 kilowatts (kW) or less, and also covers advanced inverters and battery storage systems paired with solar. Both owned and leased solar systems are eligible, making this benefit accessible regardless of how you finance your installation.

This exemption is automatic and does not require a separate application in most cases, but homeowners in Columbia should confirm the process with the Richland County assessor’s office. Combined with the state’s 25% solar tax credit, the property tax exemption helps make South Carolina a financially attractive state for going solar.

Duke Energy’s Shared Solar Program allows Duke Energy Progress residential and nonresidential customers in South Carolina to subscribe to solar energy generated at a community solar facility — no rooftop installation required. This program is open to all qualifying customers, including renters, those in multifamily housing, and customers who may not have a suitable roof for solar panels.

Subscribers receive a bill credit based on the energy output of their subscribed share of the community solar farm. For qualified low-income customers, Duke Energy Progress will waive the application cost and initial fees, a value of approximately $120, making the program even more accessible to those who need it most.

This is a practical alternative for Duke Energy customers in Columbia who want to benefit from solar energy without the complexity or cost of a rooftop system. Contact Duke Energy at 1-800-777-3600 or visit their website for current subscription availability, pricing, and eligibility requirements in South Carolina.

South Carolina’s net metering policy requires all investor-owned utilities with more than 100,000 customers to offer net metering to residential solar customers. Under net metering, any excess electricity your solar panels produce and send to the grid earns you a bill credit that can be applied to future months. Residential systems must be 20 kW or smaller to qualify, and enrollment in a time-of-use (TOU) rate plan is required by most utilities. The statewide program cap is set at 2% of each utility’s average peak demand over the prior five years.

For Columbia residents, the primary utility is Duke Energy Progress, which ended 1:1 net metering in 2021 and now credits excess generation at reduced rates of approximately 2.6–4 cents per kWh. Dominion Energy South Carolina also serves portions of the area and offers 1-to-1 net metering credits with an annual true-up each November, where remaining credits are paid at a lower avoided-cost rate.

Because net metering credit rates in South Carolina are generally below the retail electricity rate — especially for Duke Energy customers — pairing your solar system with a battery storage system can be a smart financial move. Storing excess solar energy for use during peak hours allows you to avoid buying expensive grid electricity rather than selling it back at a discount. Always contact your specific utility before installing solar to confirm their current net metering terms, as policies can change.