South Carolina Solar Incentive Programs
South Carolina's Signature Incentive: The 25% State Tax Credit
South Carolina offers one of the Southeast's best state-level solar tax credits, 25% of total system cost, claimable over up to 10 years.
How the SC Solar Tax Credit Works
Claim 25% of your total solar installation cost as a credit against your South Carolina state income tax. You can claim up to $3,500 per year (or 50% of your SC tax liability, whichever is less). Any remaining credit carries forward for up to 10 years. The credit is non-refundable, it reduces taxes owed but does not generate a refund. Claimed on SC Form TC-38. Your system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity approved by the SC State Energy Office.
| Year | SC Tax Credit Claimed | Cumulative Credit Used |
|---|---|---|
| Year 1 | $3,500 | $3,500 |
| Year 2 | $2,500 (balance) | $6,000 |
| Total 25% credit: $6,000 on $24,000 system. Claimed over 2 years at $3,500 cap. If SC tax liability is less than $3,500 in any year, the annual amount claimed is limited to 50% of that liability, remaining balance carries forward. | ||
All South Carolina Solar Incentives
Updated for 2026. Incentives vary by utility, know your provider.
SC State Income Tax Credit
25% of total system cost credited against SC state income taxes. Annual cap $3,500 (or 50% of tax liability). 10-year carry-forward. Claimed on Form TC-38. SRCC-certified systems required. No income limit, available to all SC taxpayers who owe state income tax.
Duke Energy PowerPair Rebate
Duke Energy's PowerPair solar plus battery incentive is available only to North Carolina customers. Duke's South Carolina customers currently have no comparable rooftop solar rebate. Combined maximum $9,000. Solar-only customers also qualify for the solar portion. Requires enrollment through Duke Energy's program.
Santee Cooper Solar Rebate
Santee Cooper's residential solar rebate pays $0.95 per watt-AC of installed capacity, capped at 6 kW (maximum $5,700). Must use an approved contractor from Santee Cooper's vendor list. A $10/month distributed generation rider applies for Santee Cooper solar customers. Confirm current program availability with Santee Cooper before contracting.
Net Metering
South Carolina utilities offer 1:1 kilowatt-hour credits within each monthly billing period. However, excess credits beyond your monthly usage are settled at year-end at the utility's avoided-cost rate, only 2 to 4 cents per kWh, well below retail (~$0.13). Design your system to match your monthly consumption, not annual average.
Sales Tax Exemption
South Carolina does not currently exempt residential solar equipment from its 6% sales and use tax. A bill to add an exemption (H.3949) was introduced in 2023 but was not enacted.
Property Tax Exemption
Residential solar systems up to 20 kW-AC are 100% exempt from property tax on the added home value they create. This covers panels, inverters, and paired battery storage systems. At SC's average property tax rate of ~0.53%, a $20,000 system generates roughly $106/year in avoided taxes.
Federal Investment Tax Credit
The 30% federal Residential Clean Energy Credit (Section 25D) expired December 31, 2025. Cash buyers and loan customers no longer qualify. Third-party systems (leases/PPAs) where the installer is a commercial entity may still qualify under Section 48E if construction began by July 4, 2026, or if the system is placed in service by December 31, 2027.
Net Metering by Utility
South Carolina's net metering rules vary by utility. The critical detail: excess annual generation is compensated at avoided cost (2 to 4¢/kWh), not retail. Right-sizing your system is essential.
South Carolina Net Metering: The Hidden Trap
Monthly 1:1 credits sound like full retail net metering, but any excess beyond your monthly usage is settled at year-end at the utility's "avoided cost" rate of just 2 to 4 cents per kWh. If you produce 20% more than you use annually, that overage is worth almost nothing. Size your system to use ~95% of what you produce to maximize value.
Dominion Energy South Carolina
Monthly credits: 1:1 kWh for exports within billing month
Annual true-up: Each November at avoided-cost rate (~2.8 to 3.4¢/kWh)
Utility rebate: None currently
Coverage area: Upstate SC, parts of Columbia area
Duke Energy Carolinas / Progress
Monthly credits: 1:1 kWh exports within billing month
Annual true-up: Each March at avoided-cost rate (~2.6 to 4.0¢/kWh)
PowerPair rebate: Up to $9,000 for solar + battery
Coverage area: Upstate/Piedmont SC, Charlotte-area suburbs
Santee Cooper
Monthly credits: 1:1 kWh for monthly net exports
Annual excess: Settled at avoided-cost rate
Solar rebate: $0.95/W-AC, max $5,700 (6 kW)
Coverage area: Berkeley, Georgetown, Horry, Williamsburg and surrounding counties
Incentive Stack by Utility
Based on a 7 kW residential system at $21,000 before incentives.
| Incentive | Dominion | Duke Energy | Santee Cooper |
|---|---|---|---|
| SC 25% State Tax Credit | $5,250 | $5,250 | $5,250 |
| Utility rebate | None | Up to $2,520 solar | Up to $5,700 |
| Sales tax exemption (6%) | ~$1,260 | ~$1,260 | ~$1,260 |
| Property tax exemption | Applies | Applies | Applies |
| Federal ITC | Expired | Expired | Expired |
| Estimated net cost | ~$14,490 | ~$11,970 | ~$8,790 |
Net cost estimates are illustrative. State tax credit is claimed over multiple years and requires SC income tax liability. Duke rebate assumes 7 kW at $0.36/W-AC = $2,520. Santee Cooper assumes full 6 kW at $0.95/W-AC = $5,700. Actual savings depend on individual tax situation and system production.
Honest Assessment
South Carolina has genuinely good incentives, but the state's lower electricity rates and weak net metering excess credit require careful system sizing.
South Carolina Solar Advantages
- 25% state tax credit is among the best in the Southeast
- 10-year carry-forward makes the credit usable across many income levels
- Duke PowerPair up to $9,000, excellent for battery adopters
- Santee Cooper rebate ($5,700 max) cuts upfront cost significantly
- No state sales tax exemption for residential solar
- Property tax exemption for systems up to 20 kW-AC
- Excellent solar resource, among the sunniest states east of the Rockies
- Low installed system costs vs. Northeast markets
South Carolina Solar Challenges
- Lower electricity rates (~$0.13/kWh) reduce annual bill savings vs. high-rate states
- Net metering excess settled at only 2 to 4¢/kWh, oversizing is costly
- No federal ITC in 2026 for residential buyers
- Dominion customers have no utility rebate
- Non-refundable state credit, requires SC tax liability to use it
- Santee Cooper's $10/month DG rider reduces net savings
- System sizing discipline critical to avoid low-value excess exports
Estimated Payback Period
Dominion customers: 15 to 18 years (state credit + savings only, lower electricity rate). Duke Energy customers: 11 to 14 years (with PowerPair rebate). Santee Cooper customers: 10 to 13 years (with $0.95/W rebate). All estimates assume no federal ITC, 7 kW system, right-sized to ~95% annual consumption, and SC electricity rates of ~$0.13/kWh. Payback improves meaningfully if electricity rates rise.
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