South Carolina Solar Panels

South Carolina’s Solar Energy Tax Credit allows homeowners and businesses to claim 25% of their total solar installation cost as a credit against their state income tax liability. The credit is capped at $3,500 per year and carries a lifetime maximum of $35,000 — or 50% of your annual state tax liability, whichever is less. There is no expiration date on this credit, making it available for 2026 installations and beyond.

Eligible technologies include solar photovoltaic (PV) panels, solar water heaters, and solar space heaters installed on a South Carolina property (primary residence or business). The credit is non-refundable, meaning it can only offset taxes you owe — but any unused portion automatically carries forward for up to 10 years, so you won’t lose the benefit if your tax liability is modest in any given year.

To claim the credit, file Form TC-38 (SCH.TC-38) along with your South Carolina state income tax return. You’ll need to include supporting documentation such as your solar system design, permits, and receipts showing total installation costs. Contact the South Carolina Department of Revenue at dor.sc.gov for the most current form and instructions.

South Carolina law provides a full 100% property tax exemption for solar energy systems installed on residential properties. This means that adding solar panels — which can significantly increase your home’s value — will not raise your property tax bill. The exemption applies to solar PV systems with a capacity of 20 kilowatts (kW) or less, and also covers advanced inverters and battery storage systems that are paired with solar.

Both owned and leased solar systems are eligible for this exemption, making it accessible regardless of how you choose to finance your installation. In most cases, the exemption is applied automatically, so no separate application is required. However, it is a good idea to confirm the process with your county assessor’s office to ensure it has been properly applied to your account.

This exemption provides ongoing annual savings for the life of your solar system. For homeowners in areas with higher property tax rates or larger system sizes, the cumulative savings over 20–25 years can be substantial. Visit the South Carolina Energy Office at energy.sc.gov for more information on state-level solar tax incentives.

South Carolina exempts solar energy equipment from the state’s 6% sales tax. This exemption applies at the point of purchase, meaning the savings are immediate and reduce your upfront installation cost without requiring any additional paperwork or tax filing on your part.

For a typical residential solar installation costing between $15,000 and $25,000, the sales tax exemption translates to approximately $800–$1,500 in direct savings. While this may seem modest compared to the state income tax credit, it is an automatic benefit that stacks on top of all other available incentives.

This exemption applies to solar photovoltaic panels, inverters, racking, and other qualifying solar equipment. For more details on eligible equipment and the exemption process, visit the South Carolina Energy Office at energy.sc.gov or consult your solar installer.

South Carolina state law requires all investor-owned utilities with more than 100,000 customers to offer net metering to residential solar customers with systems of 20 kW or smaller. Under net metering, excess electricity your solar panels send to the grid earns you a bill credit that can be applied to future monthly bills. The program is capped at 2% of each utility’s average peak demand over the prior five years. Credit rates and program terms vary significantly by utility: Dominion Energy South Carolina offers 1-to-1 net metering credits with an annual true-up each November (remaining credits paid at a lower avoided-cost rate); Duke Energy ended 1:1 net metering in 2021 and now credits excess generation at approximately 2.6–4 cents per kWh; Santee Cooper credits excess generation at $0.0416/kWh in summer and $0.0384/kWh in non-summer months; and electric cooperatives (e.g., Berkeley Electric, York Electric) offer monthly netting with excess credits at reduced rates of roughly 3.8–5.9 cents per kWh.

Because credit rates at most South Carolina utilities are well below the retail electricity rate, pairing your solar system with a battery storage system can be a smart financial move. Storing excess solar energy for self-consumption during peak hours — rather than exporting it to the grid at a discount — can significantly improve your return on investment. Most modern solar batteries include scheduling features that automate this process after initial setup.

Enrollment in a time-of-use (TOU) rate plan is required by most utilities to participate in net metering. Be sure to contact your specific utility before installation to understand all applicable fees, requirements, and current program availability, as terms can change. Use the South Carolina Energy Office’s Energy Saver Tool at solar.sc.gov to find current net metering program details for your utility.

Santee Cooper’s EmpowerSolar Rooftop Solar Rebate Program offers residential customers a rebate of $950 per kilowatt (kW) of installed solar capacity, with a maximum rebate of $5,700 — equivalent to a 6 kW system. This upfront incentive directly reduces your out-of-pocket cost and is one of the most generous utility solar rebates in South Carolina. The rebate is capped at 6 kW per customer over the life of the program.

To qualify, your solar PV system must be between 1 kW and 20 kW in size and must be installed by a Santee Cooper-approved Trade Ally contractor. Note that the rebate applies only to the solar electric (PV) portion of your system — battery storage is not eligible for this particular rebate. After your system is installed and inspected, allow approximately 6–8 weeks for the rebate to be processed and delivered.

This rebate can be combined with South Carolina’s 25% state solar tax credit and the property tax exemption for maximum savings. To get started or find an approved Trade Ally contractor, contact Santee Cooper at [email protected] or call 843-946-5951.

Santee Cooper’s Smart Energy Loan Program provides on-bill financing to help residential customers cover the upfront cost of a solar energy system. Approved customers can borrow up to $40,000 with repayment terms of up to 120 months (10 years), making solar more accessible without requiring a large initial investment or a separate bank loan. Eligible technologies include solar photovoltaic (PV) systems, as well as wind, micro-hydro, and biomass generation.

The application process is straightforward — loan applications are reviewed and approved or denied within five business days. There is no prepayment penalty, so you can pay off the loan early if your financial situation allows. Repayments are conveniently added directly to your monthly Santee Cooper electric bill, simplifying your finances.

This financing option is particularly valuable when combined with Santee Cooper’s EmpowerSolar rebate and South Carolina’s 25% state tax credit, which can significantly reduce the principal you need to borrow. For more information or to apply, contact Santee Cooper at [email protected] or call 843-946-5951.

Santee Cooper’s Solar Share Community Solar Program allows residential and commercial customers to benefit from solar energy without installing panels on their own property. Customers subscribe to a certain number of blocks (measured in kW) of a Santee Cooper-sponsored community solar farm and receive a pro-rated share of the energy produced as monthly bill credits. This is an ideal option for renters, homeowners with shaded roofs, or anyone who prefers not to manage a rooftop installation.

Santee Cooper provides a rebate of $1,050 per kW on Solar Share subscriptions, bringing the net cost down to approximately $130 per kW. Rebates are capped at 6 kW per customer. After the rebate, subscriptions typically pay for themselves within 4–6 years depending on your energy usage. Note that Solar Share subscribers are subject to the Distributed Generation Rider, which includes a monthly solar fee of $10.00 to recover fixed grid costs.

Solar Share is a great way to support local clean energy generation and reduce your electricity bill without the responsibilities of system ownership. Contact Santee Cooper at [email protected] or call 843-946-5951 for current subscription availability and pricing.

Duke Energy’s PowerPair program offers substantial incentives for residential customers who install a qualifying solar and battery storage system together. The incentive structure provides $0.36 per watt-AC for solar installations up to 10 kW AC, and $400 per kWh for battery storage installations up to 13.5 kWh — for a combined maximum incentive of up to $9,000. This makes PowerPair one of the most valuable battery storage incentives available to South Carolina homeowners served by Duke Energy.

PowerPair is a limited-time, first-come, first-served program, so it is important to submit your application as soon as possible. If you recently installed a qualifying solar and battery system, you must apply within 90 days of your system’s operational date. All installations must be performed by a member of Duke Energy’s approved Trade Ally network to be eligible.

As of March 2026, capacity remains available in the PowerPair program for Duke Energy Carolinas customers under both the Net Metering Bridge (NMB) and Choice (TOU) options. For questions about eligibility, the application process, approved Trade Allies, or incentive processing, email [email protected] or call 1-800-777-3600.

Duke Energy offers ongoing monthly bill credits to residential customers who enroll their home battery storage system in a demand-response program. Known as Power Manager for Duke Energy Carolinas customers and EnergyWise Home for Duke Energy Progress customers, this program allows Duke Energy to manage a portion of your battery’s stored energy during brief periods of high grid demand — called “control events” — which can occur up to 36 times per year.

In exchange for participating, homeowners receive $6.50 per kW of battery capacity each month. The incentive is based on the continuous discharge capacity of your battery and a capability factor. Given the residential interconnection limit of 20 kW, the maximum monthly credit is $91, or up to $1,092 per year. This is a passive, ongoing income stream that requires no action on your part after initial enrollment.

This program is an excellent complement to the PowerPair installation incentive and can meaningfully improve the long-term return on investment of a home battery system. Contact Duke Energy at 1-800-777-3600 or visit duke-energy.com for enrollment details and current program availability in South Carolina.