Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Columbia

Columbia homeowners are turning to solar as South Carolina electricity prices have increased 11% from 2020 to 2024. The city’s abundant sunshine makes home solar panels an attractive option for energy savings.

Understanding your options is the first step toward energy independence. This guide covers everything Columbia residents need to know about solar installation.

SOUTH CAROLINA by the Numbers

6th Most residential solar in the United States
159k Households have installed solar panels
~$10k South Carolina average solar rebate savings
~$44k Columbia average savings over 25 years
02

Key Takeaways

  • Columbia receives excellent solar irradiance year-round making solar panels highly effective for generating clean electricity and reducing utility bills.
  • South Carolina offers up to $10,000 in solar incentives including federal tax credits and state programs that significantly reduce installation costs.
  • Columbia homeowners save an average of $44,000 over 25 years while protecting against rising electricity rates with solar energy.
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Palmetto Reviews

04

Solar Cost Calculator

Our solar cost calculator uses real installation data from Columbia neighborhoods like Forest Acres, Shandon, and Rosewood. Get personalized pricing based on actual local projects, not estimates. See what your neighbors paid for solar.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in South Carolina.
Recommended
System
7.29 kW
Cost Breakdown
Your estimated investment
System Cost
$20711
Federal Tax Credit (30%)
$-6213
State Incentives
$-3500
Final
Cost
$10998
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$100
Payback Period
Break-even point
8.1 years
25-Year
Savings
$43670
05

Columbia Electricity Prices

Understanding Columbia’s electricity costs helps homeowners make informed energy decisions for their families and budgets.

South Carolina electricity rates have steadily climbed from 12.9 cents per kWh in 2021 to 14.1 cents in 2024, representing a 9% increase over three years.

Solar panels allow Columbia homeowners to generate their own electricity, reducing dependence on the grid and providing protection against future rate increases.

Over 25 years, solar systems can shield families from decades of utility rate hikes while potentially saving thousands on electricity costs.

Price of Energy: South Carolina vs National Average

10¢
20¢
30¢
13.7¢
12.9¢
15.0¢
13.6¢
16.0¢
13.7¢
16.5¢
14.1¢
2021
2022
2023
2024
US Average
South Carolina

Columbia Area Utility Providers

Columbia residents served by three main utilities enjoy electricity rates below national averages. Based on 2023 data, Duke Energy charges 12.7¢/kWh, Santee Cooper 11.4¢/kWh, and Dominion Energy 14.4¢/kWh.

These competitive rates reflect South Carolina’s energy mix and regulatory environment. All three utilities operate below the 2023 national average of 16.0¢/kWh, with Santee Cooper offering the lowest residential rates.

Even with favorable utility rates, solar panels can provide long-term savings and energy independence. Fixed solar costs protect against future rate increases while reducing environmental impact.

Columbia Utilities Electricity Rates

Duke Energy
12.70¢
-21%
Santee Cooper
11.40¢
-29%
Dominion Energy
14.40¢
-10%
SC Average
13.70¢
-14%
US Average
16.0¢
06

South Carolina Solar Incentives

Columbia homeowners can significantly reduce solar installation costs through various solar incentives in South Carolina and federal programs.

The federal solar tax credit covers 30% of installation costs, while South Carolina offers additional state tax credits and property tax exemptions for solar systems.

Local utility programs like Santee Cooper’s rebates provide extra savings, making solar installation in Columbia more affordable.

$9,713

Average savings in South Carolina solar rebates

Incentive Type Description Source
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
SC Solar Energy Credit State tax credit Homeowners can deduct 25% of the cost of their solar system (capped at $3,500) as a tax credit. Learn More
Property Tax Exemption State tax exemption Homeowners are exempt from paying property tax on the value that solar panels add to their home Learn More
Santee Cooper empowersolar Utility program Santee Cooper customers receive rebates up to $5,700 (or $950 per kilowatt installed) Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

The SC Solar Energy Credit is a state tax credit that helps South Carolina homeowners save money when they install solar panels or other qualifying renewable energy systems. This incentive allows you to claim a credit equal to 25% of your total purchase and installation costs against your state income taxes.

The financial benefit is substantial but capped – you can receive up to $3,500 maximum per installation, or 50% of your tax liability for the year, whichever is less. If your credit amount exceeds $3,500, you can carry the excess forward for up to 10 years. To qualify, your solar system must be installed on property you own in South Carolina and must be certified by the Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office. You cannot claim the credit until your system installation is completely finished.

Important considerations include that this credit applies to the full system including controls, tanks, pumps, and heat exchangers, but excludes structural elements like roofs and walls. You’ll need to file Form TC-38 to claim this credit. The program also covers small hydropower systems and geothermal equipment, though the geothermal portion expired on January 1, 2022.

South Carolina’s Property Tax Exemption program provides complete property tax relief for eligible homeowners who meet specific criteria related to military service, disability, or public service. This state tax exemption eliminates 100% of property taxes on qualifying homes and up to one acre of land, potentially saving homeowners thousands of dollars annually depending on their property’s assessed value and local tax rates.

To qualify, you must be a totally and permanently disabled veteran with a service-connected disability, a disabled former law enforcement officer or firefighter injured in the line of duty in South Carolina, a paraplegic or hemiplegic person (including those with Parkinson’s, Multiple Sclerosis, or ALS causing similar mobility issues), or a Medal of Honor recipient or former Prisoner of War. The home must be your primary residence, and you must own it solely or jointly with a spouse. Surviving spouses may also qualify under certain conditions if they remain unmarried and continue living in the home.

Applications must be submitted within two years of when taxes were paid if seeking refunds for previous years. You’ll need to provide specific documentation including medical certifications, VA certificates, recorded deeds, and proof of owner-occupied status from your county assessor. The program also offers vehicle exemptions for qualifying individuals, allowing up to two vehicles to be exempt from personal property taxes.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install solar panels on their homes. The program provides financial incentives to offset the upfront costs of solar installation while allowing homeowners to reduce their monthly electric bills by generating their own clean energy.

The program offers a rebate of $950 per kilowatt (kW) of installed solar capacity, with a maximum rebate of $5,700 per home. Santee Cooper also provides on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. However, participants must pay a monthly Distributed Generation fee of $10, which covers fixed grid costs that solar customers continue to use when their panels aren’t producing enough energy.

To be eligible, homeowners must use a Santee Cooper Trade Ally contractor for installation, as only systems installed by these qualified contractors are eligible for rebates. The rebate application process is handled through the chosen Trade Ally, and homeowners should expect 6-8 weeks for rebate delivery after final system approval and meter installation. Santee Cooper uses a bidirectional smart meter to track energy sold back to the grid, but homeowners need to monitor their system’s total production through their inverter’s online monitoring system.

Net metering in South Carolina allows homeowners with solar panels to receive credit for the excess electricity they send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill. These credits can then offset the electricity you use when your solar panels aren’t producing enough power, like at night or on cloudy days.

The financial benefits vary significantly depending on your utility company. Some utilities like Dominion Energy offer true 1:1 net metering, meaning you get full retail credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at lower rates of 2.6-4 cents per kWh. Export credit programs from cooperatives like Berkeley Electric pay around 5.9 cents per kWh for all power sent to the grid, while others like Santee Cooper pay 3.8-4.2 cents per kWh for monthly net excess.

Most South Carolina utilities require solar customers to be on specific rate schedules, often time-of-use rates that charge different amounts based on when you use electricity. Some utilities like Duke Energy also impose minimum monthly bills around $30. It’s important to note that Duke Energy ended their 1:1 net metering program in June 2021, and credits now settle monthly rather than annually. Each utility has different rules for how long credits can carry forward, with some allowing month-to-month rollover and others doing annual true-ups where excess credits are paid out at lower rates.

Ready to start saving with solar?

Speak with a Palmetto solar expert to find out exactly how much you can save with South Carolina incentives.

Get a Free Quote
07

Columbia Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.

Columbia’s humid subtropical climate and seasonal sun angles create unique solar conditions. Despite summer humidity and winter variations, proper system design maximizes year-round energy production effectively.

Solar Production in Columbia by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

In July, your 10 kW system could power:

  • 3.6 average homes (15 kWh/day per home)
  • or Run central AC for 18 hours AND power all other appliances
  • or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

[WinterProduction] kWh/day

In December, your 10 kW system could power:

  • 2 average homes (15 kWh/day per home)
  • or Keep your home heating system running for 15 hours
  • or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

[AnnualProduction] kWh/year

Over a year, your 10 kW system could:

  • Offset 10 tons of carbon dioxide emissions
  • or Equal the environmental benefit of planting 175 trees
  • or Save approximately $4,234 in electricity costs

Want to know exactly how much solar can power your home?

Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.

Get My Custom Estimate
08

Solar Installations in Columbia

We’ve mapped every solar installation across America to show you something exciting: your Columbia neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.

09

Leasing Solar Panels

Columbia residents have access to Power Purchase Agreements (PPAs) through Palmetto’s LightReach program. With a PPA, you pay for the electricity your solar panels produce at a fixed rate per kilowatt-hour, typically lower than your utility rate.

This financing option offers several advantages over purchasing solar panels outright. You avoid the large upfront investment, don’t handle system maintenance or repairs, and start saving on electricity costs immediately. Palmetto manages all equipment performance and maintenance throughout the agreement.

Compared to cash purchases, PPAs eliminate financial risk and maintenance responsibilities while still providing energy savings. Learn more about solar financing options to determine which approach fits your situation best.

Go solar without the investment

With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!

Learn More
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Frequently Asked Questions

Yes, solar makes excellent sense in Columbia, SC. The city receives abundant sunshine year-round, making solar panels highly effective for generating clean electricity and reducing utility bills.

Columbia homeowners benefit from up to $10,000 in solar incentives, including federal tax credits and state programs. With average savings of $44,000 over 25 years, solar provides strong financial returns while protecting against rising electricity rates.

Yes, Columbia has net metering, but policies vary by utility provider. Most Columbia residents are served by Duke Energy, Santee Cooper, or Dominion Energy, each offering different net metering programs.

Duke Energy requires time-of-use rates and credits excess generation at 2.6-3.9 cents per kWh. Santee Cooper offers monthly net metering with credits at 3.8-4.2 cents per kWh. Dominion Energy provides true 1:1 net metering with full retail credit for excess power sent back to the grid.

Yes, solar panels increase home value in Columbia, SC. According to a Zillow study, homes with solar panels sell for 4.1% more than comparable homes without solar systems.

In Columbia’s housing market, this translates to thousands of dollars in added value. Additionally, South Carolina exempts homeowners from paying property taxes on the value that solar panels add to their homes, making the investment even more attractive.

Solar costs in Columbia range from $9,574 to $12,421 after incentives, depending on your home size and energy needs. A typical 7.29 kW system costs about $20,711 before incentives.

After applying the 30% federal tax credit ($6,213) and South Carolina state incentives ($3,500), your final cost drops to approximately $10,998. This investment typically pays for itself in 8.1 years through electricity savings.

Yes, solar is financially worth it in Columbia, SC. With abundant sunshine and strong incentives, Columbia homeowners typically save $44,000 over 25 years while achieving an 8.1-year payback period.

After federal tax credits and state incentives totaling around $10,000, solar systems provide immediate monthly savings and long-term protection against rising electricity rates in South Carolina.

We are the leading solar installer in Columbia with a proven track record of over 1,008 installations across South Carolina since 2020. Our national reach provides industry-leading financing options while maintaining local expertise.

We offer comprehensive solar solutions from design to installation, backed by our extensive network of certified installers. Our focus on customer education and transparent pricing helps Columbia homeowners make informed energy decisions for their families.