Rock Hill, 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, this bill was introduced in 2023 and has been sitting in committee since then—it has not been passed into law and is not currently available to claim.

If enacted, the credit would be limited to non-residential solar installations with a capacity of at least 1,900 kilowatts (much larger than typical home systems) located on EPA-designated contaminated sites. The credit would be claimed in five equal annual installments, with unused portions 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 The bill also included a sunset provision that would have repealed it on December 31, 2024, though credits earned before that date could still be claimed.

Since this incentive targets large commercial projects on specific contaminated sites and has not been enacted into law, it is not applicable to residential homeowners considering rooftop solar installations. Homeowners should focus on other available incentives and financing options for their solar projects.

South Carolina offers property tax exemptions for solar energy systems and other renewable energy equipment installed on residential properties. This state tax exemption means that the added value of your solar installation won’t increase your property taxes, even though solar panels typically increase your home’s overall value. The exemption applies to both the solar equipment itself and any associated installation costs that add value to your property.

To qualify, you must own the solar equipment (leased systems don’t qualify for the homeowner) and use it at your primary residence. You’ll need to apply through the South Carolina Department of Revenue using form PT-401-I or the faster online MyDORWAY system. Applications must be submitted within two years from the date property 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. Once approved, this exemption continues as long as you own the property and the solar system remains in place, helping you maximize your solar investment by avoiding any property tax increases related to your clean energy upgrade.

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 would qualify for 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 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. After installation and submission of required documentation, Santee Cooper will conduct final acceptance testing and install a bidirectional smart meter. Rebates are typically delivered within 6-8 weeks of system approval.

Important considerations: Participants are subject to a $10 monthly Distributed Generation Rider fee, which covers fixed costs for maintaining grid infrastructure that solar customers continue to use when their panels aren’t producing enough energy. Your bidirectional meter will track both the energy you consume from the grid and any excess solar energy you send back to Santee Cooper, which will be reflected on your monthly bill. Contact Santee Cooper at [email protected] or 843-946-5951 with specific questions about the program.

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 and what you’ll receive for your excess solar energy varies significantly depending on which utility company serves your home. Each utility in SC has its own specific net metering or net billing policy with different credit rates and settlement periods.

The financial benefits depend on your utility provider. Dominion Energy South Carolina offers true 1:1 net metering, meaning every kilowatt-hour (kWh) you export offsets imported energy at the same rate, with excess credits carrying over month-to-month and settled annually in November at around 2.8-3.4 cents/kWh. Duke Energy (both Progress and Carolina) requires time-of-use rates and provides 1:1 credit matching within the same time period during your monthly billing cycle, with any remaining excess valued at approximately 2.6-4 cents/kWh (note: traditional 1:1 net metering ended June 1, 2021, and Duke has a $30 minimum monthly bill). Santee Cooper and York Electric Co-op offer monthly net metering where usage is netted against exports on a 1:1 basis each month, with remaining excess credited at reduced rates. Berkeley Electric Cooperative and Laurens Electric use net billing, crediting all exported energy at fixed rates ranging from 5-8 cents/kWh depending on season. Abbeville Public Utilities credits exports at time-of-use rates of approximately 2.75-4.24 cents/kWh.

Eligibility typically requires installing an approved solar energy system and enrolling in your utility’s net metering or net billing program. Some utilities, like Duke Energy and Dominion Energy, require you to switch to a time-of-use rate schedule when you add solar. There are generally no statewide deadlines, though individual utilities may have capacity caps or program limitations. It’s important to understand your specific utility’s policy before installing solar, as the credit rates and settlement terms directly impact your long-term savings. Contact your utility provider to confirm current program availability and requirements in your service area.