South Carolina Solar Panels

South Carolina’s Solar Energy Tax Credit allows homeowners 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 can be carried forward for up to 10 years, with a lifetime maximum benefit of $35,000 — or 50% of your annual state tax liability, whichever is less. This makes it one of the most generous state-level solar incentives in the Southeast.

Eligible technologies include solar photovoltaic (PV) panels, solar water heaters, solar space heaters, and small hydroelectric systems. The system must be installed on a property located in South Carolina — either your primary residence or a business property. Because the credit is non-refundable, it can only offset taxes you actually owe; however, any unused portion rolls forward automatically each 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. There is no expiration date on this credit, so it remains available for 2026 and beyond.

South Carolina law provides a full (100%) property tax exemption for solar energy systems installed on residential properties. This means that even though adding solar panels increases the market value of your home, that added value will not be included in your property’s assessed value for tax purposes — so your property tax bill stays the same after going solar.

The exemption applies to solar systems with a capacity of 20 kilowatts (kW) or less, and also covers advanced inverters and battery storage systems paired with solar. Both owned and leased solar systems are eligible, making this benefit accessible regardless of how you finance your installation.

This exemption is automatic and does not require a separate application in most cases, but homeowners should confirm the process with their county assessor’s office. Combined with the state’s 25% solar tax credit, the property tax exemption helps make South Carolina a financially attractive state for going solar.

Santee Cooper’s EmpowerSolar Rooftop Solar Rebate Program offers residential customers a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum rebate of $5,700 (equivalent to a 6 kW system). This upfront incentive directly reduces the out-of-pocket cost of going solar for Santee Cooper customers.

To qualify, your solar system must be between 1 kW and 20 kW in size and must be installed by a Santee Cooper-approved Trade Ally contractor. Importantly, the rebate applies only to the solar electric (PV) portion of your system — battery storage is not eligible for this rebate. Funding is limited and awarded on a first-come, first-served basis, so it’s important to apply early.

After your system is installed and inspected, allow approximately 6–8 weeks for the rebate to be processed and delivered. The total rebate per customer over the life of the program is capped at 6 kW. For more information or to find an approved contractor, contact Santee Cooper at [email protected] or 843-946-5951.

Santee Cooper’s Solar Share program is a community solar option that lets residential customers benefit from solar energy without installing panels on their own home. Customers purchase a subscription to a portion of a Santee Cooper-sponsored community solar farm, and the energy generated by their share is credited directly to their monthly electric bill.

Subscriptions are priced at approximately $1,180 per kW, but Santee Cooper provides a rebate of $1,050 per kW, bringing the net cost down to roughly $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. Subscriptions run through 2033.

Solar Share is an excellent option for renters, homeowners with shaded roofs, or anyone who wants to support renewable energy without a rooftop installation. This program is available exclusively to Santee Cooper customers. Visit the Santee Cooper website or contact their solar team for current availability and pricing, as rates are reviewed annually.

Santee Cooper’s Smart Energy Loan Program provides on-bill financing to help residential customers afford the upfront cost of solar energy systems. 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.

The loan is available for solar photovoltaic (PV) systems, as well as wind, micro-hydro, and biomass generation. Loan applications are reviewed and approved or denied within five business days, and there is no penalty for paying off the loan early. Repayments are conveniently added directly to your monthly Santee Cooper electric bill.

This financing option can be combined with Santee Cooper’s EmpowerSolar rebate and the South Carolina state solar tax credit to significantly reduce both the upfront and long-term cost of going solar. This program is available exclusively to Santee Cooper residential customers in good standing.

Duke Energy’s Shared Solar Program allows Duke Energy Progress residential and nonresidential customers in South Carolina to subscribe to solar energy generated at a community solar facility — no rooftop installation required. This program is open to all qualifying customers, including renters, those in multifamily housing, and customers who may not have a suitable roof for solar panels.

Subscribers receive a bill credit based on the energy output of their subscribed share of the community solar farm. For qualified low-income customers, Duke Energy Progress will waive the application cost and initial fees, a value of approximately $120, making the program even more accessible to those who need it most.

This is a practical alternative for Duke Energy customers who want to benefit from solar energy without the complexity or cost of a rooftop system. Contact Duke Energy at 1-800-777-3600 or visit their website for current subscription availability, pricing, and eligibility requirements in South Carolina.

South Carolina’s net metering policy requires all investor-owned utilities with more than 100,000 customers to offer net metering to residential solar customers. Under net metering, any excess electricity your solar panels produce and send to the grid earns you a bill credit that can be applied to future months. Residential systems must be 20 kW or smaller to qualify, and enrollment in a time-of-use (TOU) rate plan is required by most utilities. The statewide program cap is set at 2% of each utility’s average peak demand over the prior five years.

Credit rates and policies vary by utility. Dominion Energy South Carolina offers 1-to-1 net metering credits with an annual true-up each November, where remaining credits are paid at a lower avoided-cost rate. Duke Energy ended 1:1 net metering in 2021 and now credits excess generation at reduced rates of 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. Electric cooperatives (e.g., Berkeley Electric, York Electric) offer monthly netting with excess credits at reduced rates ranging from roughly 3.8–5.9 cents per kWh.

Because net metering credit rates in South Carolina are generally below the retail electricity rate — especially for Duke Energy and Santee Cooper customers — pairing your solar system with a battery storage system can be a smart financial move. Storing excess solar energy for use during peak hours allows you to avoid buying expensive grid electricity rather than selling it back at a discount. Always contact your specific utility before installing solar to confirm their current net metering terms, as policies can change.