Columbia, SC Solar Panels

The SC Solar Energy Credit is a proposed state tax credit for businesses and individuals who install large-scale solar energy systems on contaminated or brownfield sites in South Carolina. This incentive offers a tax credit equal to 25% of the total cost of the solar equipment and installation. However, it’s important to note that this bill was introduced in 2023 and has been sitting in committee since then—it has not been enacted into law and is not currently available.

If passed, the credit would be distributed as five equal annual installments, with unused portions able to be carried forward for up to five years. The program would be limited to nonresidential solar installations with a capacity of at least 1,900 kilowatts (much larger than typical home systems), and the property must be located on EPA-designated contaminated sites. Each installation would be capped at $2.5 million in credits, with a statewide annual limit of $2.5 million total across all taxpayers on a first-come, first-served basis. The bill also included a sunset provision for December 31, 2024, meaning even if it were to pass now, the window for claiming new credits under this proposal has already closed.

Because this incentive targets large commercial-scale projects on specific contaminated sites rather than residential installations, it would not apply to typical homeowner solar systems. Additionally, since the bill has not been enacted and its proposed deadline has passed, South Carolina homeowners should focus on other available incentives such as local utility programs or any other active state incentives when considering solar installation.

South Carolina offers a property tax exemption for solar energy systems installed on residential properties. This exemption means that when you add solar panels to your home, the increased value they bring to your property won’t be counted when calculating your annual property taxes. While your home’s value increases with solar, you’ll continue paying property taxes based on your home’s value without the solar system.

To qualify for this exemption, you’ll need to apply through the South Carolina Department of Revenue using their MyDORWAY online portal or by submitting form PT-401-I. The application process requires basic information about your property, including the tax map number, deed information, and confirmation that the property is your primary residence with the 4% owner-occupied assessment ratio. You must apply within two years from the date taxes were paid if seeking a refund for previous years.

This exemption continues for as long as you own the solar system and the property, with no expiration date. However, you’ll need to reapply if there’s a change in ownership or status of the property. The exemption applies to both roof-mounted and ground-mounted solar installations on your residential property. Keep in mind that this is separate from any federal incentives and works alongside other state programs to make solar more affordable for South Carolina homeowners.

The Santee Cooper EmpowerSolar program helps residential customers install rooftop solar panels by offering a rebate of $950 per kilowatt (kW) of installed capacity, up to a maximum of $5,700. This means a typical 6 kW home solar system could receive the full $5,700 rebate. The program also includes net metering, which allows you to receive credit for excess solar energy your system sends back to the grid. Additionally, Santee Cooper offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers.

To participate, you must work with a Santee Cooper-approved Trade Ally for installation—only systems installed by these qualified contractors are eligible for rebates. Be aware that participating customers are subject to a $10 monthly Distributed Generation Rider fee, which covers fixed costs for maintaining grid infrastructure that solar customers continue to use when their panels aren’t producing enough energy. After installation and documentation submission, Santee Cooper will conduct final acceptance testing and install a bidirectional smart meter. Rebates are typically delivered within 6-8 weeks of system approval. There are no specific program deadlines mentioned, but it’s recommended to contact Santee Cooper at [email protected] or review their EmpowerSolar Home Program manual before making your decision.

Net metering in South Carolina allows homeowners with solar panels to receive credit for the excess electricity their system sends back to the power grid. How this works depends on which utility company serves your home, as South Carolina has eight different utility providers, each with their own net metering or net billing policies. The basic concept is that when your solar panels produce more electricity than your home uses, that excess energy flows back to the grid, and you receive a credit on your electric bill.

The financial benefit varies significantly by utility provider. Dominion Energy South Carolina offers true 1:1 net metering, meaning every kilowatt-hour (kWh) you export offsets an equal amount you import from the grid. However, most other utilities in South Carolina have moved to net billing or modified net metering structures. For example, Duke Energy Progress and Duke Energy Carolina ended 1:1 net metering in June 2021 and now require time-of-use rates, crediting excess generation at reduced rates of approximately 2.6-4 cents per kWh. Cooperatives like Berkeley Electric credit exports at about 5.9 cents per kWh, while Santee Cooper credits range from 3.84 to 4.16 cents per kWh depending on the season. Most utilities settle accounts monthly, though Dominion Energy conducts an annual true-up in November where remaining credits are paid out at a lower avoided cost rate.

Eligibility typically requires installing a solar system that meets your utility’s interconnection standards and switching to a time-of-use rate plan (required by Duke and Dominion). Some utilities charge additional monthly fees for solar customers—Duke Energy has a $30 minimum monthly bill, Dominion charges $14 monthly for their required Rate 5 plan, and York Electric adds a $3.30 monthly charge. It’s important to understand your specific utility’s policy before going solar, as the compensation structure directly impacts your system’s payback period and long-term savings.