South Carolina solar incentives, tax credits & rebates
Resources to make solar panels more affordable in 2024
After using the full federal solar tax credit, a typical solar installation is $8,995 to $17,990 in South Carolina. Residents can also claim a 25% personal credit on state taxes, and Santee Cooper customers might be eligible for rebates and low-interest loan programs.
Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable in the Palmetto State.
In South Carolina, a typical residential solar panel system costs $8,995 to $25,700, depending on the size of your system and what financial incentives you qualify for.
Jump to insightResidents can take advantage of federal and personal tax credits as well as a property tax exemption on renewable energy equipment.
Jump to insightSouth Carolina residents can get the time-of-use (TOU) retail rate when they sell excess solar power to the local grid
Jump to insightResidential solar panel incentives in South Carolina
The federal solar investment tax credit (ITC) is a significant financial incentive for most homeowners. It reduces your federal tax liability by 30% of how much it costs to install solar panels.
The ITC drops to 26% in 2033 and then 22% in 2034.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If, in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000. Residents can combine the ITC with the state’s 25% solar tax credit.
100% property tax exemption
Solar systems under 20 kilowatts (kW) are fully exempt from property taxes in South Carolina. A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t result in an increase in your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home.
Santee Cooper incentives
- Rooftop solar rebates let you get up to $5,700 back on the cost of your home’s new solar system. The catch is a qualified Santee Cooper Trade Ally, or NABCEP-certified photovoltaic (PV) installation professional must install the system.
- Renewable energy resource loans are available in amounts ranging from $500 to $20,000. As of publishing, the current loan rate is 6.5%, and repayment terms are up to 60 months.
Additional solar incentives in South Carolina
Check DSIRE for the most comprehensive source of information about solar incentives and policies in South Carolina.
| Incentive type | Amount | Eligible solar equipment | Appicable sectors | Administrator | |
|---|---|---|---|---|---|
| ConserFund Program | Loan program | Up to $500,000 per fiscal year | Solar panels, biomass, geothermal heat pumps | Local government, nonprofit, schools, state government, institutional | South Carolina Energy Office |
| Solar Energy, Small Hydropower, and Geothermal Tax Credit | Corporate tax credit | 25% of eligible costs | Solar panels, solar water heat, solar space heat | Commercial, residential | South Carolina Department of Revenue |
| Santee Cooper Commercial Energy Efficiency Program | Rebate program | Varies | Solar water heat | Commercial, industrial, installers/contractors | Santee Cooper |
| Renewable Energy Manufacturing Tax Credit | Industry recruitment/support | $500,000 for any year; $5 million total for 15 years | Solar panels, water heat, space heat, thermal electric, thermal process heat | Industrial | South Carolina Department of Commerce |
What to know about net metering in South Carolina
Net metering lets homeowners with solar panels sell the excess electricity they generate back to their utility company and gain credits on their electricity bills.
The value of these net metering credits can vary by utility — some offer full retail (sometimes called “one-to-one”) rates, while others offer lower rates. It's best to check with your specific utility provider to understand its current net metering policies.
The goal of net metering is to encourage you to produce enough renewable electricity for your own home's needs, but not drastically more than what you use. Here's how it works:
- Your home's electricity meter keeps track of both the electricity used from the utility company and any extra solar electricity fed into the grid.
- At the end of each billing period, your utility company determines if you put more electricity into the grid than you pulled out.
- If you put back more than you used, you get a credit towards next month's bill for the extra amount.
How much are solar panels in South Carolina?
After considering the federal solar tax credit, solar panel costs in South Carolina typically range from $8,995 to $17,990. Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in South Carolina is 10.33 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.
Average solar cost by system size in South Carolina
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $12,850 | $15,420 | $17,990 | $20,560 | $23,130 | $25,700 |
| After federal tax credit | $8,995 | $10,794 | $12,593 | $14,392 | $16,191 | $17,990 |
Solar resources in South Carolina
Below are some additional resources.
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.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 | 4.7 | Yes | Cash, loan, lease, PPA | 2014 | Learn More |
 | 4.2 | Yes | Cash, loan, lease | 2007 | Get Started |
 | 2.9 | Yes | Cash, loan | 2017 | Learn more |
 | 2.2 | Yes | Cash and loan | 2015 | Learn more |
 | 4.7 | No | Cash, loan | 2018 | Learn more |
FAQ
Can I get free solar panels in South Carolina?
There are no programs for free solar panels in South Carolina. You can lease with little to no upfront costs, though.
» FREE SOLAR PANELS: Are they really free?
How much can I save with solar panels in South Carolina?
On average, South Carolina homeowners with solar panels avoid $62,231 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In South Carolina, solar panels usually pay for themselves within 8.5 years.
» EXPLORE: Where your solar savings go the furthest
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
» SOLAR PANELS: Lease vs. buy
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
In South Carolina, there are no laws that prevent a homeowners association from restricting solar panels.
» GREENEST STATES: South Carolina ranked 15th in 2024
What has South Carolina’s investment in solar been so far?
Total solar investments in the state amount to $3.3 billion, according to the Solar Energy Industries Association.
Bottom line
Although there aren’t as many incentives as some other states, appealing tax breaks, low-interest loans and other initiatives make going solar worthwhile for many South Carolina homeowners.
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in South Carolina.
Solar costs vs. savings: South Carolina and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Georgia | $16,380 | $27,300 | 11.17 kW | $2.73 | $57,429 |
| North Carolina | $15,360 | $25,600 | 10.48 kW | $2.56 | $62,935 |
| South Carolina | $15,420 | $25,700 | 10.33 kW | $2.57 | $62,231 |
Article sources
- DSIRE, "South Carolina Programs." Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in South Carolina." Accessed March 29, 2024.
- Solar Energy Industries Association, "South Carolina Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in South Carolina, 2024?" Accessed March 29, 2024.
- South Carolina Energy Office, “Tax Credits, Incentives, and Net Metering.” Accessed Sept. 4, 2024.
- South Carolina Renewable Energy Company,” Solar Tax Credits in South Carolina.” Accessed Sept. 4, 2024.
