Myrtle Beach, SC Solar Panels

The SC Solar Energy Credit is a proposed state tax credit for businesses and individuals who install large-scale solar energy 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. 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 passed, the credit would be distributed as five equal annual installments, with unused portions 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. The program would only apply to non-residential solar systems with a capacity of at least 1,900 kilowatts installed on EPA-designated contaminated sites. The bill also included a sunset provision for December 31, 2024, which has already passed, meaning even if enacted now, the program would need to be revised. Homeowners should be aware this incentive is not available for residential solar installations and is currently not an active program.

South Carolina offers property tax exemptions for solar energy systems installed on residential properties. This state-level incentive exempts the added value of your solar installation from your property taxes, meaning you won’t pay additional property taxes on the increased home value that results from adding solar panels. While your home’s value may increase with solar, your property tax bill will be calculated as if the solar system wasn’t there.

To claim this exemption, you’ll need to apply through the South Carolina Department of Revenue using form PT-401-I or their online MyDORWAY system. Applications must be submitted within two years from the date taxes were paid. You’ll need to provide documentation including your recorded deed and proof that you’ve been granted the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office. The property must be your primary residence, and you must own the home either solely or jointly with a spouse.

This exemption continues as long as you own and occupy the home, though you’ll need to reapply if there’s a change in ownership or status. The fastest way to apply is online at MyDORWAY.dor.sc.gov, where you can submit your application without mailing paper forms. If you prefer, you can also mail your application to the SC Department of Revenue or visit one of their service centers in person.

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 would qualify for the full $5,700 rebate. The program also provides net metering, allowing you to send excess solar energy back to the grid and receive credit on your electric bill for the power you generate.

To participate, you must work with a Santee Cooper-approved Trade Ally contractor for installation—only systems installed by these qualified contractors are eligible for rebates. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 to help cover installation costs. After 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 of final approval.

Important considerations: Participants will pay a monthly Distributed Generation fee of $10.00, which covers fixed costs for maintaining grid connection when your solar system isn’t producing enough power. This fee applies every month you’re enrolled in the program. Santee Cooper does not monitor your solar system’s performance—you’ll need to track that yourself or through your installer. The bidirectional meter only records energy flowing to and from the grid, not your total solar production.

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 each has different rules and credit rates. Most utilities in SC use either monthly net metering (where your solar production offsets your usage each month) or net billing (where you receive a specific credit rate for exported power).

The financial benefits vary significantly by utility provider. Dominion Energy South Carolina offers true 1:1 net metering, meaning every kilowatt-hour (kWh) you export offsets one kWh you import at full retail rate, with excess credits carrying forward month-to-month. Duke Energy Progress and Duke Energy Carolina require time-of-use rates and provide 1:1 offsetting within the same time period, but excess generation is credited at lower avoided cost rates of approximately 2.6-4 cents per kWh. Santee Cooper credits net excess at $0.0416/kWh in summer and $0.0384/kWh in non-summer months. Cooperative utilities like Berkeley Electric credit exports at $0.0592/kWh, while Laurens Electric offers $0.08/kWh in summer and $0.05/kWh in non-summer. York Electric Co-op provides 1:1 monthly netting with excess valued at $0.0479/kWh.

Eligibility typically requires installing an approved solar system and enrolling in your utility’s net metering or net billing program. Duke Energy customers must switch to a time-of-use rate plan and pay a $30 minimum monthly bill. Dominion Energy customers are required to use Rate 5 TOU, which includes a $14 monthly charge. York Electric Co-op charges an additional $3.30 per month for net metering participants. Most utilities settle accounts monthly with no annual true-up, though Dominion Energy conducts an annual true-up each November, paying out excess credits at the winter off-peak rate (approximately 2.8-3.4 cents/kWh) and resetting the account to zero.

An important consideration is that Duke Energy ended traditional 1:1 net metering on June 1, 2021, so new solar customers receive lower compensation for excess generation. Additionally, some utilities like Dominion Energy restrict how credits can be used—credits earned during on-peak periods can only offset on-peak usage, and off-peak credits can only offset off-peak consumption. Understanding your specific utility’s net metering structure is essential for accurately estimating your solar savings, as the financial benefit can vary considerably across South Carolina’s different service territories.