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 up to 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 approved by the State Energy Office, and the system must be fully installed before you can claim the credit.

There are no specific deadlines mentioned for this residential solar credit, and it appears to be an ongoing program. However, homeowners should know that this credit only applies to the solar equipment itself – it doesn’t include structural elements like roofs or walls. You’ll need to file Form TC-38 when claiming this credit on your South Carolina state tax return. This credit works alongside federal solar incentives, giving you additional savings on top of any federal tax credits you may qualify for.

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 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 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 reduce their monthly electric bills and contribute to clean energy generation.

The program offers a rebate of $950 per kilowatt (kW) of installed solar capacity, with a maximum rebate of $5,700 per residential system. Additionally, qualifying customers can access on-bill financing through Santee Cooper’s Smart Energy Loan Program for up to $40,000 to help cover installation costs. However, participants will pay a monthly Distributed Generation fee of $10 to cover fixed grid costs.

To be eligible, solar systems must be installed by Santee Cooper Trade Allies – qualified contractors who are familiar with the program requirements. Only systems installed by these approved contractors are eligible for rebates. Homeowners should expect a 6-8 week processing time for rebate payments after installation and final acceptance testing. The program uses a bidirectional smart meter to track energy sold back to the grid, and homeowners will need access to their inverter’s online monitoring system to track total solar production and personal energy usage.

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 during 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 reduced 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 plans that charge different rates 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 are now settled monthly rather than annually. Each utility has different rules for how long credits can be carried forward, with some allowing indefinite rollover and others requiring annual true-ups where excess credits are paid out at lower rates.