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

Important considerations for homeowners include that this credit applies only to the solar equipment itself (panels, inverters, controls, tanks, pumps, heat exchangers) and installation costs – it doesn’t cover structural elements like roofing or walls. You’ll need to file Form TC-38 with your state tax return to claim this credit. The credit reduces your South Carolina state income tax liability dollar-for-dollar, making it a valuable incentive that can significantly reduce the overall cost of going solar.

South Carolina’s Property Tax Exemption program provides complete property tax relief for eligible homeowners who meet specific qualifying criteria. This state-level incentive eliminates 100% of property taxes on your primary residence, including both the home and up to one acre of land, which can save homeowners thousands of dollars annually depending on their property value and local tax rates.

To qualify for this exemption, you must be a totally and permanently disabled veteran with a service-connected disability, a disabled 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 property must be your primary residence, and you must own it either solely or jointly with your spouse. Surviving spouses may also qualify under certain conditions as long as they remain unmarried and continue living in the home.

Applications must be submitted within two years from the date taxes were paid if you’re seeking refunds for previous years. You can apply online through South Carolina’s MyDORWAY system, by mail, or in person at Department of Revenue service centers. Required documentation varies by category but typically includes medical certifications, VA certificates, recorded deeds, and proof that you’ve received the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install solar panels on their homes. The program provides financial incentives to offset the upfront cost of solar installation while allowing homeowners to sell excess energy back to the grid through net metering.

The program offers a rebate of $950 per kilowatt (kW) of installed solar capacity, with a maximum rebate of $5,700 per home. Santee Cooper also provides on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. However, participants must pay a monthly Distributed Generation fee of $10 to cover fixed grid costs.

To qualify, solar systems must be installed by Santee Cooper Trade Allies – certified contractors who are familiar with the program requirements. Only systems installed by these approved contractors are eligible for rebates. The rebate application process is handled through the chosen Trade Ally, and rebate payments are typically delivered within 6-8 weeks after final system approval and meter installation.

Important considerations include the mandatory $10 monthly fee that applies to all solar customers, which helps cover the fixed costs of maintaining grid infrastructure that solar customers continue to use. Homeowners should factor this ongoing cost into their solar investment calculations. Additionally, while Santee Cooper installs a bidirectional meter to track energy sold back to the grid, they do not monitor the solar system’s performance – homeowners need to use their inverter’s monitoring system to track total energy production.

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 be used to offset the electricity you draw from the grid when your solar panels aren’t producing enough power, like at night or on 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 receive full retail rate credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at lower 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 settle accounts monthly rather than annually, and many require time-of-use rate schedules when you install solar. Some utilities like Duke Energy have minimum monthly bills around $30, and a few charge additional monthly fees for net metering customers. It’s important to note that Duke Energy ended their 1:1 net metering program in June 2021, so new solar customers receive lower compensation rates for excess generation.