Rock Hill, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to receive 25% of the costs for purchasing and installing a solar energy system. This credit can be applied to your state income taxes, with a maximum benefit of $3,500 per installation or 50% of your tax liability for the year, whichever is less. If your credit exceeds $3,500, you can carry forward the remaining amount for up to 10 years.

To qualify, your system must be certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office. The credit applies to solar systems for water heating, space heating/cooling, daylighting, or electricity generation. The credit cannot be claimed until after installation is complete. Homeowners should note that this credit is separate from the federal solar tax credit and can be claimed in addition to federal incentives.

South Carolina’s Property Tax Exemption offers significant tax relief for homeowners with solar energy systems. This state tax incentive exempts the value of your solar installation from property tax assessments, meaning the added value that solar brings to your home won’t increase your property tax bill.

To qualify, you simply need to own a residential solar system installed on your property in South Carolina. There’s no cap on the exemption amount – 100% of the solar system’s value is exempt from property taxes. Homeowners can apply through the South Carolina Department of Revenue’s MyDORWAY online portal, which is the fastest method, or by submitting form PT-401-I. The exemption remains in effect as long as you own the system, but you’ll need to reapply if there’s a change in ownership or status of the property.

Santee Cooper’s EmpowerSolar program offers homeowners in their service area financial incentives to install rooftop solar panels. Through this utility program, qualifying residential customers can receive a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,700. This significant rebate helps offset the upfront cost of installing a solar energy system, making renewable energy more accessible for homeowners.

To be eligible, your solar system must be installed by a Santee Cooper Trade Ally (qualified contractor). Additionally, homeowners should be aware that participants are subject to a $10 monthly fee under Santee Cooper’s Distributed Generation Rider to cover fixed costs of the electric system. For those needing financing assistance, Santee Cooper offers on-bill financing through their Smart Energy Loan Program for Renewable Energy for up to $40,000. After installation and documentation submission, allow 6-8 weeks for rebate processing.

Net Metering in South Carolina allows solar panel owners to receive credit for excess electricity they send back to the grid. The program varies by utility company, with each offering different rates and structures. When your solar panels produce more electricity than your home uses, that excess power flows back to the grid, and you receive credit on your electric bill.

The financial benefits differ significantly between utilities. Dominion Energy South Carolina offers 1:1 net metering, meaning you get full retail credit for excess energy. Duke Energy requires time-of-use rates and credits excess generation at about 2.6-4 cents per kWh. Santee Cooper credits excess generation at approximately 4 cents per kWh, while some cooperatives like Berkeley Electric value exported energy at about 5.9 cents per kWh.

Most utilities settle accounts monthly rather than annually, meaning any excess credits are applied to your next bill or paid out at a reduced rate. Duke Energy has implemented a $30 minimum monthly bill for solar customers, and Dominion’s program requires enrollment in their Rate 5 time-of-use plan with a $14 monthly charge.

Important note: Traditional 1:1 net metering ended with Duke Energy on June 1, 2021. If you’re considering solar, understanding your specific utility’s net metering policy is crucial for calculating potential savings and determining system size. Each utility has different rules for how excess credits are handled at the end of billing periods, with some allowing indefinite rollover and others resetting credits annually.