Florence, SC Solar Panels

The SC Solar Energy Credit is a proposed state tax credit for businesses and individuals who install large-scale solar systems on contaminated or brownfield sites in South Carolina. This incentive offers a credit equal to 25% of the total cost of the solar equipment and installation. The credit is distributed as five equal annual payments, starting the year the system is placed in service, with unused credits able to be carried forward for up to five years.

To qualify, the solar system must be non-residential with a minimum capacity of 1,900 kilowatts AC and must be installed on sites listed on the EPA’s National Priority List or equivalent contaminated sites as certified by the state. The maximum credit per installation is capped at $2.5 million, and total credits available statewide are limited to $2.5 million per year on a first-come, first-served basis. Important note: This bill was introduced in January 2023 but has not been enacted into law and remains in committee, so this credit is not currently available to claim. Additionally, the proposed legislation included a sunset date of December 31, 2024, meaning even if passed, it would have already expired.

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 included in your property tax assessment. 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 own the solar energy system (leased systems typically don’t qualify) and use it at your primary residence. The exemption applies to the solar panels, inverters, batteries, and related equipment that are part of your solar installation. You’ll need to apply through the South Carolina Department of Revenue using form PT-401-I, which can be submitted online through MyDORWAY (the fastest option), by mail, or in person at a service center. Applications must be submitted within two years from the date property taxes were paid, and you may need to reapply if there are changes in ownership or status of your property.

This exemption works alongside other property tax benefits you may already receive, such as the 4% assessment ratio for owner-occupied homes. The financial benefit varies based on your local property tax rate and the value of your solar system, but it can result in significant savings over the life of your system by preventing your annual property tax bill from increasing due to your solar investment.

The Santee Cooper EmpowerSolar program helps residential customers install solar panels on their homes by offering a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum rebate of $5,700. This means a typical 6 kW home solar system would qualify for the full $5,700 rebate. The program also allows you to sell excess energy back to the grid through net metering, which can help reduce your monthly electric bills. Your solar system must be installed by a Santee Cooper-approved Trade Ally to qualify for the rebate.

Important considerations include a monthly $10 Distributed Generation Rider fee that applies to all solar customers, which covers fixed costs for maintaining grid infrastructure you’ll continue to use when your panels aren’t producing enough energy. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. After installation and submission of required documentation, allow 6-8 weeks for rebate delivery. The utility uses bidirectional meters to track both the energy you consume from the grid and the excess energy your system sends back, which will be reflected on your monthly bill.

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 varies significantly depending on which utility company serves your home. Some utilities offer true 1-to-1 net metering (where each kilowatt-hour you export offsets one you import), while others use net billing (where exports are credited at a lower rate than what you pay for electricity).

The financial benefits depend on your specific utility provider. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning your solar credits match the full retail rate during the same time period. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1-to-1 credits within the same time period, but excess generation is valued at only 2.6-4 cents per kWh (note that Duke ended traditional 1-to-1 net metering on June 1, 2021). Cooperatives like Berkeley Electric and Laurens Electric use net billing, crediting exports at 5-8 cents per kWh depending on the season. York Electric and Santee Cooper offer monthly net metering with excess credits valued at reduced rates of 3.8-4.8 cents per kWh.

Eligibility typically requires installing an approved solar system and enrolling in your utility’s net metering or net billing program. Some utilities, particularly Duke Energy and Dominion Energy, require you to switch to a time-of-use rate plan when you add solar. Most utilities settle accounts monthly rather than annually, meaning excess credits either roll forward to the next month or are valued at a lower avoided-cost rate. Dominion Energy conducts an annual true-up in November, paying out remaining credits at around 2.8-3.4 cents per kWh before resetting your account to zero. Duke Energy also has a $30 minimum monthly bill requirement that solar customers should factor into their savings calculations.