South Carolina Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in South Carolina?

With the federal solar tax credit gone, it makes sense to take advantage of as many statewide and local solar incentives as possible. Here’s what to know about available rebates, tax breaks, performance-based incentives and more.

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

South Carolina offers a tax credit that helps lower the cost of going solar (or installing geothermal or small hydropower). Here is how it works:

• You can get back 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

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.

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.

What to know about net metering in South Carolina

Net metering lets you earn credit for the extra electricity your solar panels produce. When your system generates more power than your home uses, the excess is sent back to the grid. Your utility then gives you a credit on your electric bill, which helps offset the cost of power you use later (like at night).

The value of those credits depends on your utility:

• Full retail (1-to-1) net metering: You get credited at the same rate you pay for electricity
• Reduced-rate programs: You’re paid less for excess power than what you pay to buy electricity

For example, if your utility charges $0.10 per kWh:

• Under full retail net metering, you’d get a $0.10 credit per kWh exported
• Under reduced rates, you might get significantly less. This is more common for people switching to solar now.

Because of the rules and lower export rates, South Carolinians are increasingly adding batteries to store their own power for night use rather than selling it to the utility for a lower credit.

NOTE: Not all South Carolina utilities offer the same terms. Some charge extra fees or have different rules, especially electric co-ops and municipal utilities.

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, which costs $19,076 on average. 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 4.55%, 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 of up to 120 months.

Federal solar loan programs

Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like FHA or VA.

• FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings, and a home energy assessment is required first.
• VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
• Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.

Compare solar companies in South Carolina

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

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