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 you pay

5. The solar company you hire

6. How long you stay in your house

1. Solar panel installation costs

Average solar panel costs in South Carolina are comparable with the national average. A typical South Carolina household needs a 7.6 kW system, which costs approximately $19,076. On the high end, Ernest in Charleston said he spent $43,000 installing 50 panels.

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 $2.51. “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 panel costs by system size in South Carolina

2. Your current energy consumption

A typical South Carolina household needs a system with the capacity of 7.6 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

The 30% federal residential solar tax credit has expired, but South Carolina still has a few ways to lower solar costs:

• State tax credit: You can claim 25% of your solar costs, up to $3,500 per year. Unused credit can carry forward for up to 10 years.

• Santee Cooper rebate: Eligible customers can get $950 per kW, up to $5,700.

• Property tax break: Qualifying home solar systems generally won’t increase your property taxes.

Net metering rates in South Carolina

Net metering lets you earn credits for extra solar power sent to the grid. How much those credits are worth depends on your utility.

• Duke Energy: Solar credit rates and rules depend on your specific solar plan, including when electricity is produced and used.

• Dominion Energy: Solar Choice customers can receive credits for excess generation, with remaining annual credits paid at a lower rate.

• Santee Cooper: Excess solar is credited at a set rate below retail.

4. How you pay

Many South Carolina homeowners finance or lease solar panels with minimal upfront costs.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range from $150 to $250. Agreements last 20 to 25 years.

5. The solar company you hire

South Carolina solar customers often report lower electric bills and smooth installations. A common complaint, though, is that promised savings don’t always match what the system actually delivers.

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. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

6. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 13.23 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. However, the added value varies by location and market conditions, so you shouldn't assume solar will fully repay its cost when you sell.

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.

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.

South Carolina solar FAQ

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 $12,534 to $25,069 for panels that last about 25 years. Over that same time period, you’d avoid approximately $29,770 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