Greenville, 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 but has not been enacted into law—it remains in committee and has not been passed by the South Carolina legislature.

If this bill were to become law, the credit would be distributed as five equal annual installments, with unused credits able to be carried forward for up to five years. The maximum credit per installation would be capped at $2.5 million, and the state would limit total credits to $2.5 million per year across all taxpayers on a first-come, first-served basis. To qualify, the solar system must be nonresidential with a minimum capacity of 1,900 kilowatts and must be located on EPA-designated contaminated sites. The bill originally specified it would apply to tax years beginning after 2022 and would sunset on December 31, 2024, though this timeline has already passed without the bill becoming law.

This incentive is not applicable to typical residential solar installations due to the large system size requirement and the specific site location restrictions. Homeowners considering solar should explore other available South Carolina incentives and consult with a solar professional about current programs that may apply to residential systems.

South Carolina offers a property tax exemption that can completely eliminate property taxes on your home if you qualify under specific circumstances. This state-level benefit is available to certain veterans, first responders, and individuals with specific disabilities or military honors. Unlike a tax credit that reduces what you owe, this exemption removes the entire property tax burden on your primary residence, potentially saving you thousands of dollars every year depending on your home’s assessed value and local tax rates.

To qualify, you must meet one of several criteria: be a veteran who is totally and permanently disabled due to a service-connected disability, a former law enforcement officer or firefighter (including volunteers) who became totally and permanently disabled in the line of duty in South Carolina, a person with paraplegia or hemiplegia (or certain conditions like Parkinson’s, Multiple Sclerosis, or ALS that cause similar mobility challenges), a Medal of Honor recipient, or a former Prisoner of War from World War I, World War II, the Korean Conflict, or the Vietnam Conflict. The home must be your primary residence, and you must own it either solely or jointly with your spouse. Surviving spouses may continue to receive this exemption as long as they remain unmarried and continue living in the home.

You must apply through the South Carolina Department of Revenue, either online via MyDORWAY or by submitting form PT-401-I. The application requires specific documentation depending on your qualifying condition, such as VA certification letters, physician statements, or documentation from your commanding officer or fire chief. You must also provide proof that your home qualifies for the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office. Claims must be filed within two years from the date taxes were paid if you’re seeking a refund, and you’ll need to reapply if there’s a change in ownership or your qualifying status.

The Santee Cooper EmpowerSolar program helps residential customers install rooftop solar panels by offering a rebate of $950 per kilowatt (kW) of installed 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 access to on-bill financing through the Smart Energy Loan Program, which offers up to $40,000 for qualifying residential customers to help cover installation costs.

To be eligible for the rebate, your solar system must be installed by a Santee Cooper-approved Trade Ally. Once your system is installed and all documentation is submitted, Santee Cooper will conduct final acceptance testing and install a bidirectional smart meter. You can expect to receive your rebate within 6-8 weeks after approval. Keep in mind that participating customers are subject to a monthly Distributed Generation Rider fee of $10, which covers fixed costs for maintaining grid connection when your solar panels aren’t producing enough energy to meet your needs.

Your new bidirectional meter will track both the energy you use from the grid and any excess solar energy you send back to Santee Cooper. This excess energy will appear on your bill as “Total Energy Used Rec” (kilowatt-hours received), helping you understand how much clean energy your system is contributing to the grid. Before making your decision, it’s recommended to contact a qualified Trade Ally for an onsite assessment to determine if solar is right for your home and to understand all program details.

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 multiple utilities with different net metering policies. Some utilities offer true 1-to-1 net metering (where each kilowatt-hour you export offsets one kilowatt-hour you import), while others use net billing (where exports are credited at a lower rate than what you pay for electricity).

The financial benefits vary significantly by utility. Dominion Energy South Carolina offers 1-to-1 net metering with a time-of-use rate, meaning your solar credits match the full retail rate, though excess credits are settled annually at around 2.8-3.4 cents per kWh each November. Duke Energy (both Progress and Carolina) ended 1-to-1 net metering in June 2021 and now requires time-of-use rates, crediting excess generation at only 2.6-4 cents per kWh with a $30 minimum monthly bill. Santee Cooper and York Electric Co-op offer monthly net metering where usage is netted 1-to-1 each month, with any remaining excess credited at lower rates (around 3.8-4.8 cents per kWh). Cooperatives like Berkeley Electric and Laurens Electric use net billing, crediting all exports at fixed rates between 5-8 cents per kWh depending on season.

Most South Carolina utilities require solar customers to switch to time-of-use rates, which means electricity costs vary based on when you use it. Several utilities also charge additional monthly fees for solar customers, ranging from $3.30 to $30 per month. There are no statewide deadlines for net metering enrollment, though policies can change—Duke Energy’s transition away from 1-to-1 net metering in 2021 demonstrates that utility policies may become less favorable over time. It’s important to understand your specific utility’s net metering structure before installing solar, as the financial returns can differ substantially depending on whether you receive full retail credit or reduced export rates for your excess generation.