Spartanburg, SC

The SC Solar Energy Credit is a state tax credit that allows South Carolina homeowners to reduce their income tax liability when they purchase and install a solar energy system. This incentive provides a credit equal to 25% of the costs for buying and installing solar equipment on your home. The maximum credit is capped at $3,500 per installation or 50% of your tax liability for the year, whichever is less.

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 cannot be claimed until installation is complete. If your credit exceeds the $3,500 cap, you can carry forward the unused portion for up to 10 years. This incentive applies to solar systems for water heating, space heating, air cooling, energy-efficient daylighting, heat reclamation, or electricity generation.

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 must own the solar system installed on your property. The exemption applies automatically when you install solar panels, with no separate application required specifically for solar equipment. This exemption has no expiration date and continues as long as you own the system. For homeowners considering solar, this incentive provides long-term savings by preventing property tax increases that would otherwise result from home improvements that increase property value.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners installing solar panels on their properties. Through this utility program, qualifying residential customers can receive a rebate of $950 per kilowatt (kW) installed, up to a maximum of $5,700. This significant rebate helps offset the upfront cost of your solar installation, making renewable energy more affordable.

To be eligible, your solar system must be installed by a Santee Cooper Trade Ally (qualified contractor). Additionally, Santee Cooper offers on-bill financing through their Smart Energy Loan Program for Renewable Energy, allowing qualified homeowners to finance up to $40,000 of their solar installation. Please note that participants will be subject to a monthly fee of $10 under the Distributed Generation Rider, which covers fixed costs associated with maintaining your connection to the grid. Before making a decision, it’s recommended to contact Santee Cooper directly at [email protected] to understand all integration and rate details.

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 credit rates and billing 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 benefit depends on your utility provider. Dominion Energy South Carolina offers 1:1 net metering (full retail credit), while Duke Energy requires time-of-use rates and credits excess generation at approximately 2.6-4 cents per kWh. Santee Cooper credits excess generation at about 4 cents per kWh, and co-ops like Berkeley Electric offer around 5.9 cents per kWh for exported power. Most utilities settle accounts monthly with no annual true-up, though Dominion performs a November true-up at a reduced rate.

Important considerations: Duke Energy has implemented a $30 minimum monthly bill for solar customers, and their traditional 1:1 net metering ended June 1, 2021. Some utilities require specific rate plans (like time-of-use) for solar customers. Credits are typically handled monthly, with varying policies on how excess credits carry forward. Before installing solar, check with your specific utility provider as their net metering policies and credit rates significantly impact your solar investment’s value.