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 income tax liability for the year – whichever amount is smaller. If your credit exceeds $3,500, you can carry the excess forward and use it on your state taxes for up to 10 additional years. To qualify, your solar system must be certified by the Solar Rating and Certification Corporation or a similar organization approved 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. The credit covers the solar panels, inverters, controls, and other equipment used directly for the solar system, but it doesn’t include structural elements like your roof or walls. This state credit can be combined with federal solar incentives to maximize your total savings from going solar.

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 public service. This state tax exemption eliminates 100% of property taxes on qualifying homes and up to one acre of land, potentially saving homeowners thousands of dollars annually depending on their property value and local tax rates.

To qualify, you must be a totally and permanently disabled veteran with a service-connected disability, a disabled former 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 solely or jointly with a spouse. Surviving spouses may also qualify under certain conditions if they remain unmarried and continue living in the home.

Applications must be submitted within two years of when taxes were paid if seeking refunds for previous years. You can apply online through MyDORWAY at MyDORWAY.dor.sc.gov, by mail, or in person at South Carolina Department of Revenue service centers. Required documentation varies by exemption type but typically includes medical certifications, VA documentation, recorded deeds, and proof of owner-occupied status from your county assessor’s office.

Santee Cooper’s EmpowerSolar program is a utility rebate program that helps residential customers in South Carolina install rooftop solar panels on their homes. The program provides financial incentives to reduce the upfront cost of solar installation while allowing homeowners to generate their own clean energy and potentially lower 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 will pay an additional monthly fee of $10 through the Distributed Generation Rider to help cover fixed grid costs.

To be eligible, solar systems must be installed by a Santee Cooper Trade Ally contractor. 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 testing 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 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 get full retail 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 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 several charge additional monthly fees for solar 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.