Greenville, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to receive 25% of the cost of purchasing and installing a solar energy system. This credit can be applied to your state income taxes, with a maximum benefit of $3,500 per installation or 50% of your tax liability, whichever is less. If your credit exceeds $3,500, you can carry forward the remaining amount for up to 10 years.

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 applies to solar systems for water heating, space heating/cooling, daylighting, or electricity generation. The credit cannot be claimed until installation is complete. Homeowners should note that this credit is separate from the 30% federal tax credit for solar installations, and you can claim both incentives for the same system.

South Carolina’s Property Tax Exemption offers significant financial relief for homeowners with solar energy systems by exempting the value of these systems from property tax assessments. This means when you install solar panels on your home, the increased property value won’t result in higher property taxes, allowing you to enjoy the benefits of solar energy without the burden of additional taxation.

To qualify for this exemption, homeowners must complete the PT-401-I form through the South Carolina Department of Revenue’s MyDORWAY online portal or submit a paper application. The exemption must be applied for within two years of paying property taxes. Once approved, the exemption remains in place unless there’s a change in ownership or status of the property. For assistance with the application process, homeowners can contact the Department of Revenue directly at [email protected].

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners who install solar panels on their roofs. Qualified residential customers can receive a rebate of $950 per kilowatt (kW) installed, up to a maximum of $5,700. Additionally, Santee Cooper provides on-bill financing through their Smart Energy Loan Program for Renewable Energy, allowing eligible homeowners to finance up to $40,000 for their solar installation.

To qualify for these incentives, your solar system must be installed by a Santee Cooper Trade Ally, and a NABCEP certified PV Installation Professional must perform an onsite assessment. Homeowners should be aware that participating in the program subjects them to a monthly fee of $10.00 under Santee Cooper’s Distributed Generation Rider, which covers fixed costs associated with the electric system. After installation and submission of required documentation, Santee Cooper will conduct final acceptance testing before installing a bidirectional smart meter and processing your rebate, which typically takes 6-8 weeks to receive.

Net Metering in South Carolina allows solar panel owners to receive credit for excess electricity they send back to the grid. The program varies by utility company, 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 you receive credit on your electric bill.

The financial benefits differ significantly between utilities. Dominion Energy South Carolina offers true 1:1 net metering, where each kilowatt-hour (kWh) sent to the grid offsets one kWh of usage. Duke Energy requires time-of-use rates and credits excess generation at approximately 2.6-4 cents per kWh. Santee Cooper credits excess generation at about 4 cents/kWh, while some cooperatives like Laurens Electric offer higher export rates of 5-8 cents/kWh depending on the season.

Most utilities in South Carolina settle net metering credits monthly rather than annually. This means any excess generation is typically credited at the end of each month, though some utilities like Dominion perform an annual true-up in November. Additionally, Duke Energy has implemented a $30 minimum monthly bill for solar customers, and their traditional 1:1 net metering ended on June 1, 2021.

Before installing solar, homeowners should carefully review their specific utility’s net metering policy, as the financial returns can vary dramatically. Some utilities require specific rate plans (like time-of-use) for solar customers, which affects when your solar production is most valuable. Understanding these details is essential for accurately calculating your potential savings from a solar investment.