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 capped – you can claim up to $3,500 maximum per solar installation, or 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 comparable organization endorsed by the State Energy Office, and the system must be fully installed before you can claim the credit.

There are no specific application deadlines mentioned, but you must wait until your solar installation is completely finished before claiming this credit on your state tax return using Form TC-38. Keep in mind that this credit only applies to the solar equipment itself (panels, inverters, controls, etc.) and installation costs – it doesn’t cover structural elements like roofing or land costs. This state credit can be combined with federal solar incentives to maximize your overall savings.

South Carolina’s Property Tax Exemption program provides complete property tax relief for eligible homeowners who meet specific criteria related to military service, disability, or other qualifying conditions. This state tax exemption eliminates 100% of property taxes on your primary residence, which can save homeowners thousands of dollars annually depending on their home’s assessed value and local tax rates.

To qualify, 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 exemption applies to your primary dwelling home and up to one acre of land, and you must own the property solely or jointly with your spouse. You’ll need to provide specific documentation such as VA certificates, physician statements, or official disability determinations depending on your qualifying condition.

Applications must be submitted within two years from the date taxes were paid if you’re seeking a refund for previous years. The easiest way to apply is through South Carolina’s MyDORWAY online portal, though you can also mail applications or visit service centers in person. Once approved, you’ll need to reapply if there’s a change in your status or property ownership. Surviving spouses may also qualify for this exemption under certain conditions, provided they remain unmarried and continue to reside in the home.

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 generate their own clean energy and potentially reduce their monthly electric bills.

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, which covers fixed grid costs that solar customers continue to use when their panels aren’t producing enough energy.

To be eligible, homeowners must use a Santee Cooper Trade Ally contractor for installation, as only systems installed by these qualified contractors are eligible for rebates. The rebate application process is handled through the chosen Trade Ally, and Santee Cooper uses DocuSign to streamline the interconnection process. After installation and documentation submission, customers should allow 6-8 weeks for rebate delivery following final system acceptance and smart meter installation.

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 offset the electricity you use when your solar panels aren’t producing enough power, like at night or during 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 credit for excess power. Others like Duke Energy require time-of-use rates and credit excess generation at reduced 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 net excess generation.

Most South Carolina utilities require solar customers to be on specific rate schedules, often time-of-use rates that charge different amounts based on when you use electricity. Some utilities like Duke Energy also impose minimum monthly bills around $30, and York Electric Co-op charges an additional $3.30 monthly fee for net metering customers. It’s important to note that Duke Energy ended their 1:1 net metering program in June 2021, and Dominion Energy conducts an annual true-up in November where excess credits are paid out at lower wholesale rates before your account resets to zero.