Summerville, SC

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

To qualify, your solar system must be installed and operational before claiming the credit, and it 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 water heating, space heating/cooling, energy-efficient daylighting, and electricity generation systems. The credit covers equipment directly related to the solar energy system but does not include land or structural elements of the building such as walls and roofs.

South Carolina’s Property Tax Exemption offers significant financial relief for homeowners with solar energy systems by exempting the value of your solar installation from property tax assessments. This means when you install solar panels, the increased home value they create won’t result in higher property taxes, allowing you to enjoy the benefits of solar without the tax burden.

To qualify, you must own the property and have a properly installed solar energy system. There’s no specific deadline to apply, but you should submit your application through MyDORWAY (South Carolina’s online tax portal) or by mail after your solar installation is complete. Remember that claims for exemptions must be received within two years from the date taxes were paid if you’re seeking retroactive benefits. This incentive remains in effect as long as you own the property, making it a long-term financial advantage for solar homeowners.

Santee Cooper’s EmpowerSolar program offers financial incentives to homeowners installing rooftop solar panels. Qualifying residential customers can receive a rebate of $950 per kilowatt of installed solar capacity, up to a maximum of $5,700. This significant rebate helps offset the upfront cost of your solar installation, making renewable energy more affordable for your home.

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 when your solar system isn’t producing enough energy.

Net Metering in South Carolina is a program that allows solar panel owners to receive credit for excess electricity they send back to the grid. When your solar system produces more electricity than your home uses, that surplus energy flows to the utility grid, and you receive credit on your electric bill. This program varies significantly between utility companies in South Carolina, with each offering different rates and structures.

The financial benefits depend on your utility provider. Dominion Energy South Carolina offers traditional 1:1 net metering, where each kilowatt-hour (kWh) sent to the grid offsets one kWh used from the grid. Duke Energy requires time-of-use (TOU) rates and credits excess generation at approximately 2.6-4 cents per kWh. Santee Cooper credits excess generation at about 4 cents per kWh, while some cooperatives like Laurens Electric offer higher export rates (5-8 cents per kWh depending on season).

Most utilities in South Carolina settle net metering credits monthly rather than annually. This means any excess generation is typically credited to your next month’s bill, though the exact credit value varies by utility. Some providers like Dominion Energy conduct an annual true-up in November, paying approximately 2.8-3.4 cents per kWh for any accumulated credits before resetting the balance to zero.

Important considerations: Duke Energy implements a $30 minimum monthly bill for solar customers, and their traditional 1:1 net metering ended June 1, 2021. Several utilities require specific rate plans for solar customers, such as time-of-use rates. For the most current information about net metering availability and specific terms for your area, contact your local utility provider directly.