Solar Guide

The SC Solar Energy Credit is a state tax credit that helps South Carolina homeowners save money when they install solar energy systems. This incentive allows you to claim a credit equal to 25% of the total costs you pay for purchasing and installing a qualifying solar energy system on your South Carolina home.

The financial benefit is substantial but has limits. You can claim up to $3,500 maximum per solar installation, or 50% of your state tax liability for the year, whichever is less. If your credit amount exceeds $3,500, you can carry the excess forward and use it over the next 10 years. To qualify, your solar system must be certified by the Solar Rating and Certification Corporation or a similar organization endorsed by the State Energy Office, and the system must be fully installed before you can claim the credit.

There are some important things to keep in mind as a homeowner. The credit only applies to the solar equipment itself – like panels, inverters, controls, and installation costs – but doesn’t include structural elements like your roof or walls. You’ll need to file Form TC-38 with your state tax return to claim this credit. While there’s no specific expiration date mentioned for residential solar systems, it’s always wise to confirm current availability when planning your solar installation.

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 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 property 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 can apply online through MyDORWAY at MyDORWAY.dor.sc.gov, by mail, or in person at South Carolina Department of Revenue service centers. Required documentation varies by exemption type but typically includes medical certifications, VA disability ratings, recorded deeds, and proof of owner-occupied status from your county assessor’s office.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install rooftop solar panels on their homes. The program provides financial incentives to offset the upfront costs of solar installation while allowing homeowners to sell excess energy back to the grid through net metering.

Qualifying solar installations receive a rebate of $950 per kilowatt (kW) of installed capacity, with a maximum rebate of $5,700 per system. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 to help cover installation costs. However, participants must pay a monthly Distributed Generation fee of $10 to help cover fixed grid costs.

To be eligible, solar systems must be installed by a Santee Cooper Trade Ally contractor. There are no specific deadlines mentioned, but rebate processing takes 6-8 weeks after installation and final acceptance testing. Homeowners should note that while they can monitor their system’s total production through their inverter, Santee Cooper only tracks the excess energy sold back to the grid through a bidirectional smart meter.

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. Berkeley Electric Cooperative credits all exported power at 5.92 cents per kWh, while rates at other cooperatives range from 2.75-8 cents per kWh depending on the season and time of day.

Most South Carolina utilities settle credits monthly rather than annually, and some have minimum monthly bills (like Duke’s $30 minimum). It’s important to note that Duke Energy ended their 1:1 net metering program in June 2021, and some utilities require specific rate schedules when you install solar. The exact terms and credit rates depend entirely on which utility serves your home, so understanding your specific utility’s net metering policy is crucial for calculating your solar savings.