Are solar panels worth it in South Carolina?

6 factors to consider before getting solar panels in South Carolina

ConsumerAffairs has heard from thousands of solar customers who have completed the installation process, including dozens from South Carolina. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. South Carolina solar incentives
4. How long you stay in your house
5. How you pay
6. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in South Carolina are comparable with the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $12,850 to $25,700. That price drops to $8,995 to $17,990 after the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. In South Carolina, the average cost per watt is $2.57. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes.

Average solar installation cost by system size in South Carolina

2. Your current energy consumption

A typical South Carolina household needs a system with the capacity of 10.33 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption. Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.

3. South Carolina solar incentives: federal and state

Tax credits and other solar incentives in South Carolina can lower the upfront cost of solar, and statewide net metering programs further justify the investment for many.

• State and federal tax breaks: South Carolina residents can take advantage of the 30% federal solar investment tax credit (ITC) and a 25% personal tax credit when they go solar. (Don’t get confused: Tax credits are different from rebates or refunds. You can't take advantage of them if you don’t owe taxes in the first place.)
• Santee Cooper incentives: You might be eligible for loans and rebates designed to encourage residents to invest in renewable energy.
• Net metering credits: Net metering lets you earn credits for sending extra solar energy into the local power grid. The value of net metering credits varies by utility — some offer full retail rates, while others offer lower rates. It's best to check with your specific utility to understand their current net metering policies.

» GREENEST STATES: South Carolina ranked 15th in 2024

4. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 8.5 years on average in South Carolina. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But, you miss out on some of that $62,231 in total avoided utility costs over 25 years.

Solar panels last 25 to 30 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

5. How you pay

Going into debt to buy solar panels can make sense. As long as your monthly payments are less than your existing electricity bill, you’re saving money overall. Then, once you repay the loan, your house basically gets free energy.

• Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leases: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them.
• Home equity loans or lines of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system.

6. The solar company you hire

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. In fact, one solar customer, Matt in Santee, told us it was “the worst decision ever.”

“I was sold on the ideas of owning my own energy, having tax incentives and adding value to my home,” he told us. But he said sales reps misled him on the available incentives and overall costs. He found out the hard way that the investment is absolutely not worth it if your panels don’t generate enough power for your household.

Matt’s experience is a perfect example of why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. We suggest using the National Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Monthly costs: solar payments vs. savings

Given rising energy costs in South Carolina and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway. In the best-case scenario, it’s easy, and you’re happy with your system’s performance.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. South Carolina averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? South Carolina (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in South Carolina

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in South Carolina

The average homeowner in South Carolina uses a lot of power, which adds up to a lot of savings when you switch to solar.

• Cheaper energy bills: Going solar now means that your monthly energy expenses will be more predictable (and often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• More energy independence: Embracing solar paves the path toward true energy independence. It especially works out for people in areas susceptible to power outages.
• Higher home resale value: The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts. Plus, South Carolina has a property tax exemption on solar equipment.

Drawbacks of solar panels in South Carolina

Some people don’t get the deal they thought they were getting. Installation delays, bad local utility contracts or faulty equipment are often to blame.

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in South Carolina. That way, you can store energy at home instead of tapping into the local grid when you need to.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy.

» MORE: Solar energy pros and cons

Find solar companies in South Carolina

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for South Carolina’s top solar companies to learn more.

Bottom line: Is going solar in South Carolina worth it for you?

Going solar in Palmetto State isn’t just a green move; it's often a smart money move. On average, you’ll spend $8,995 to $25,700 for panels that last about 25 years. Over that same time period, you’d avoid approximately $62,231 in total utility costs.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in South Carolina and other states. With electricity costs continuing to rise, more homeowners find solar power is financially worth it in the long run.

Solar costs vs. savings: South Carolina and nearby states