Florence, 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 solar energy systems. This credit covers 25% of the purchase and installation costs for qualifying solar equipment, with a maximum credit of $3,500 per installation or 50% of your tax liability for the year, whichever is less.

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. If your credit exceeds the $3,500 limit, you can carry forward the excess amount for up to 10 years. This incentive applies to solar systems that heat water, provide space heating/cooling, energy-efficient daylighting, heat reclamation, or generate electricity for your home.

South Carolina’s Property Tax Exemption for solar energy systems provides homeowners with complete relief from property taxes on their solar installations. 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—the entire solar system is exempt from property taxation.

To qualify, you simply need to own a solar energy system installed on your property in South Carolina. There is no application deadline, but you’ll need to apply through the South Carolina Department of Revenue’s MyDORWAY online portal or by submitting form PT-401-I. This exemption continues for the life of your solar system with no expiration date, making it a long-term financial benefit that enhances the overall return on your solar investment.

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 rebate helps offset the upfront cost of your solar installation, making renewable energy more affordable.

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. Please note that participants will be subject to a monthly fee of $10 under Santee Cooper’s Distributed Generation Rider, which covers fixed costs associated with grid connection. Before making a decision, homeowners should consult with a Trade Ally to determine the appropriate system size and understand all integration and rate details.

Net Metering in South Carolina allows solar panel owners to receive credit for excess electricity they send back to the grid. This program varies by utility company across the state, with each offering different rates and structures. When your solar panels produce more electricity than your home uses, that excess power flows back to the grid, and your utility company provides you with credits on your bill.

The financial benefits differ significantly between utilities. Dominion Energy South Carolina offers traditional 1:1 net metering, where each kilowatt-hour sent to the grid offsets one kilowatt-hour used. Duke Energy requires time-of-use rates and credits excess generation at approximately 2.6-4 cents per kilowatt-hour. Santee Cooper credits excess generation at about 4 cents per kilowatt-hour, while some cooperatives like Berkeley Electric value exports at 5.92 cents per kilowatt-hour. Most utilities settle credits monthly rather than annually, and some have minimum monthly bills (Duke Energy has a $30 minimum). For homeowners considering solar, it’s important to understand your specific utility’s net metering policy as it will significantly impact your solar investment’s financial return.