South Carolina Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in South Carolina?

You may qualify for tax breaks, rebates and subsidized loan programs. Plus, South Carolina homeowners with solar panels can save $29,770 in total avoided utility costs over 25 years.

Santee Cooper rooftop solar rebate

Santee Cooper offers a rebate to help lower the upfront cost of installing solar panels. The amount you get depends on your system size. You’ll receive $950 per kilowatt (kW) installed. The maximum rebate is $5,700. For example, a typical 5 kW system could qualify for about $4,750 back.

The rebate can reduce your upfront cost, but it won’t cover the full price of a system.

To get the rebate, you must work with a Santee Cooper-approved contractor (Trade Ally). After installation, the utility inspects your system and installs a new meter. Once everything is approved, your rebate is issued — typically within six to eight weeks.

Keep in mind that solar customers also pay a $10 monthly grid fee to help cover the cost of maintaining the electric system.

Personal solar tax credit in South Carolina

South Carolina’s personal solar tax credit can reduce your state income tax bill over time. Here is how it works:

• You can claim 25% of your system’s cost
• But you can only claim up to $3,500 per year
• And you can’t claim more than half of what you owe in state taxes that year

For example, if your solar system costs $20,000, the total credit is worth $5,000. You can claim $3,500 this year, then roll over the rest to future years. You can carry over leftover credit for up to 10 years.

Property tax exemption in South Carolina

A solar property tax exemption means that, for tax purposes, the addition of a solar energy system won’t cause an increase in your property’s assessed value. It doesn’t actually make going solar cheaper up front.

Under South Carolina law, this exemption applies to renewable energy resource property — including rooftop solar — with a nameplate capacity of 20 kilowatts (kW) AC or less, which covers the large majority of residential systems. It applies to added value from solar, not total property value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home.

Net metering in South Carolina

Net metering lets you get credit for extra electricity your solar panels send to the grid. How much that electricity is worth depends on your utility and rate plan.

South Carolina customers who signed up for older net metering plans may still have more favorable terms. Duke Energy also offers some legacy customers a transition plan before they move to newer solar rates.

How the major utilities handle solar credits

Electric cooperatives and municipal utilities can set different rules, so check your utility’s current solar rate before signing a contract.

• Duke Energy: Extra solar power is credited at a rate that is lower than the retail price of electricity.
• Dominion Energy: Solar credits can carry over during the year, but unused credits are paid out at a lower avoided-cost rate each November.
• Santee Cooper: Excess solar power is currently credited at 4.15 cents per kilowatt-hour rather than the full retail rate.

Pro tip

Because exported solar power may be worth less than electricity you buy from the grid, a battery can sometimes help you save more by storing extra solar energy for later use.

» LEARN: How solar energy is stored in a battery

Community and shared solar programs

If your roof isn’t a good fit for solar, or you rent your home, the state’s major investor-owned utilities also let residential customers buy into an off-site solar array and receive a bill credit for their share of the power it produces.

• Duke Energy’s Shared Solar program lets Duke Energy Carolinas and Duke Energy Progress customers subscribe to a portion of a community solar array for an upfront application and subscription fee, then earn a monthly bill credit for their share of the power produced; Duke also sets aside a discounted, fee-waived tier for income-qualified customers. Subscription capacity is limited and can sell out.
• Dominion Energy’s Community Solar program lets residential customers subscribe to or purchase panels in an off-site array instead of installing rooftop panels, with bill credits based on the array’s output.

Availability and subscription capacity for both programs change over time, so check with your utility for current openings before you sign up.

Additional solar incentives in South Carolina

Solar panel costs in South Carolina

Average solar panel costs in South Carolina generally start between $12,534 and $25,069.

System size is a big cost factor of going solar. A typical South Carolina household needs about a 7.6 kW system. Depending on your energy needs, you might need a smaller or larger system.

Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the total system price.

Average solar panel costs by system size in South Carolina

Solar loan programs in South Carolina

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

Santee Cooper solar loans

Energy efficiency loans are available in amounts ranging from $500 to $20,000. As of publishing, the current loan rate is 4.75%, and repayment terms are up to 60 months.

You can also apply for a Santee Cooper Renewable Energy Resource loan. These are available up to $40,000, with a payback period of up to 120 months.

Federal mortgage options for solar panels

Some mortgage programs allow eligible borrowers to include the cost of energy-saving improvements in a home purchase or refinance loan. Solar eligibility, borrowing limits and other requirements vary by program and lender.

• FHA Energy Efficient Mortgages: Eligible borrowers may be able to finance cost-effective energy improvements as part of an FHA-insured purchase or refinance mortgage. A home energy assessment is required, and the improvements must be expected to save at least as much as they cost. FHA also has separate provisions for financing eligible solar and wind systems.
• VA Energy Efficient Mortgages: Eligible veterans, service members and certain National Guard and Reserve members may be able to add up to $6,000 in approved energy improvements to a VA-backed purchase or refinance loan. For improvements costing more than $3,000, the lender must verify that the projected monthly energy savings exceed the increase in the mortgage payment.

Compare solar companies in South Carolina

Working with a local solar company in South Carolina makes it easier to understand local incentives.

Find solar companies in your city

• Columbia
• Charleston

FAQ

Bottom line

South Carolina still offers a valuable state tax credit for solar, but losing the federal 30% credit makes installing a system more expensive in 2026. Savings also depend heavily on the homeowner’s utility and how much it pays for excess solar sent to the grid. That means homeowners should look beyond annual production estimates and consider their utility’s solar rates, their energy-use patterns and the size of the system. In areas with low export rates, oversizing a system may not pay off.