Spartanburg, 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 would provide a credit equal to 25% of the total cost of the solar equipment and installation. However, it’s important to note that this bill was introduced in 2023 and has not been enacted into law—it remains in committee and has not passed.

If enacted, the credit would be distributed as five equal annual installments, with unused credits able to be 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 program would only apply to nonresidential solar systems with a capacity of at least 1,900 kilowatts (kW AC) installed on EPA-designated contaminated sites. The legislation included a sunset provision for December 31, 2024, which has already passed, making this incentive unavailable even if it were to be enacted now.

This proposed incentive is not applicable to typical residential solar installations and would not benefit most homeowners due to the large system size requirement and specific site location restrictions.

South Carolina offers property tax exemptions for solar energy systems installed on residential properties. This state-level incentive exempts the added value of your solar installation from your property taxes, meaning you won’t pay higher property taxes even though solar panels increase your home’s value. The exemption applies to both the solar equipment itself and any increase in your property’s assessed value resulting from the installation.

To qualify for this exemption, you must own the solar energy system (leased systems don’t qualify) and use it at your primary residence in South Carolina. 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, proof that you’ve been granted the 4% special assessment ratio for owner-occupied dwellings from your county assessor’s office, and details about your property. Once approved, this exemption continues as long as you own and occupy the home, though you may need to reapply if there’s a change in ownership or status of the property.

The Santee Cooper EmpowerSolar program helps residential customers install solar panels on their homes by offering a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum rebate of $5,700. This means a typical 6 kW home solar system would qualify for the full $5,700 rebate. The program also allows you to sell excess energy back to the grid through net metering, which appears as a credit on your monthly electric bill.

To qualify for this program, your solar system must be installed by a Santee Cooper Trade Ally—a qualified contractor who is certified and up to date with program requirements. After installation and submission of all required documentation, Santee Cooper will conduct final acceptance testing and install a bidirectional smart meter. You can expect to receive your rebate within 6-8 weeks of final approval.

Important considerations: Participants will pay a monthly Distributed Generation fee of $10.00, which covers fixed costs for maintaining grid connection when your solar system isn’t producing enough energy. Santee Cooper also offers on-bill financing through their Smart Energy Loan Program for up to $40,000 for qualifying customers. The utility does not monitor your solar system’s performance—they only track energy flowing to and from the grid through your meter.

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 surplus electricity flows to the grid, and your utility company credits your account. How this works and what you receive varies significantly depending on which utility company serves your area.

The financial benefits differ by utility provider. Dominion Energy South Carolina offers true 1:1 net metering, meaning every kilowatt-hour (kWh) you export offsets an equal amount you import, though you’ll need to be on their Rate 5 time-of-use plan with a $14 monthly charge. Duke Energy Progress and Duke Energy Carolina provide monthly net metering with 1:1 credit during the same time-of-use period, but any excess generation is credited at only 2.6-4 cents per kWh, and they require a $30 minimum monthly bill. Santee Cooper and York Electric Co-op offer monthly netting with excess credits valued at 3.8-4.8 cents per kWh. Berkeley Electric Cooperative and Laurens Electric credit all exported energy at 5-8 cents per kWh. Abbeville Public Utilities credits exports at 2.75-4.24 cents per kWh depending on time of day.

Most South Carolina utilities require solar customers to be on a time-of-use rate plan, which means electricity costs vary based on when you use it. Duke Energy customers should note that their 1:1 net metering program ended on June 1, 2021, and new solar customers receive lower compensation for excess generation. Dominion Energy conducts an annual true-up each November where remaining credits are paid out at around 2.8-3.4 cents per kWh, while most other utilities settle accounts monthly with no annual reconciliation. Understanding your specific utility’s net metering policy is essential for accurately estimating your solar savings.