Fort Mill, 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 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 this bill were to pass, the credit would be paid out in five equal annual installments starting the year the system is placed in service. For example, a qualifying solar installation costing $100,000 would generate a $25,000 credit, paid as $5,000 per year over five years. Any unused credit could be carried forward for an additional five years. The maximum credit per installation is capped at $2.5 million, and the state would limit total credits to $2.5 million annually across all applicants on a first-come, first-served basis.

This proposed incentive has very specific eligibility requirements that make it unsuitable for typical homeowners. The solar system must be nonresidential with a minimum capacity of 1,900 kilowatts (a commercial-scale system), and it must be located on an EPA-designated contaminated site. The bill was set to expire on December 31, 2024, though credits earned before that date could still be claimed. Since this legislation has not been enacted and remains in committee, South Carolina homeowners should not factor this into their solar planning decisions.

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 result in higher property taxes. Your home’s assessed value for tax purposes remains the same as it was before installing solar, helping you avoid the typical property tax increase that comes with home improvements.

To benefit from this exemption, you’ll need to apply through the South Carolina Department of Revenue using their MyDORWAY online system or by submitting form PT-401-I. The application should be filed within two years from the date taxes were paid. You’ll need to provide documentation about your property ownership, including your recorded deed and confirmation that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office. This exemption applies as long as you own the property and the solar system remains in place, providing ongoing savings by preventing property tax increases related 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 of $5,700. This means a typical 6 kW home solar system could receive the full $5,700 rebate. The program also provides on-bill financing through the Smart Energy Loan Program for up to $40,000 for qualifying customers, making it easier to afford the upfront costs of going solar.

To participate, you must work with a Santee Cooper-approved Trade Ally contractor who will handle the installation and rebate application process. Only systems installed by these approved contractors are eligible for rebates. After installation and documentation submission, Santee Cooper will conduct final testing and install a bidirectional smart meter that tracks both the energy you use from the grid and the excess solar energy you send back to it. Rebates are typically delivered within 6-8 weeks after final approval.

Important considerations: Participants will pay a monthly Distributed Generation fee of $10, which covers fixed costs for maintaining grid infrastructure that solar customers continue to use when their panels aren’t producing enough energy. This fee is designed to ensure fair cost distribution across all customers. Your solar system will offset your energy consumption, and any excess energy sent back to the grid will be credited on your bill. Santee Cooper does not monitor your solar system’s performance—that responsibility stays with you and your installer.

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 with varying net metering policies. Some utilities offer true 1-to-1 net metering (where exported energy offsets imported energy at the same rate), while others use net billing (where exports are credited at a lower rate than what you pay for electricity).

The financial benefit varies significantly by utility. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate structure, meaning your solar exports offset your electricity usage at full retail value during the same time period. Duke Energy Progress and Duke Energy Carolina also offer monthly net metering, but require time-of-use rates and credit excess generation at only 2.6-4 cents per kWh. Cooperatives like Berkeley Electric and Laurens Electric use net billing, crediting exports at fixed rates ranging from 5-8 cents per kWh. Most utilities settle accounts monthly, though Dominion Energy conducts an annual true-up each November where remaining credits are paid out at a reduced rate of approximately 2.8-3.4 cents per kWh.

Eligibility typically requires installing an approved solar system and switching to your utility’s designated solar rate plan, which often includes time-of-use pricing. Some utilities charge additional monthly fees for solar customers—Duke Energy has a $30 minimum monthly bill, Dominion Energy charges $14 monthly for their solar rate, and York Electric adds a $3.30 monthly charge. It’s important to note that Duke Energy ended traditional 1-to-1 net metering on June 1, 2021, so customers who installed systems after that date receive lower compensation for excess generation. There are no statewide deadlines, but net metering policies can change, so understanding your specific utility’s current program is essential before installing solar.