Solar Panels in South Carolina
Strong State Tax Credit + Federal Incentives
$1,000/yr
Avg. Annual Savings
5.1 peak hrs/day
Peak Sun Hours
10–14 years
Payback Period
$13,000–$19,000
Avg. System Cost
Overview
Is Solar Worth It in South Carolina?
Investing in a solar panel system is not cheap -- but if you're in the right location with lots of sunshine, it can pay off big time in the long run, providing you with thousands of dollars in savings on energy bills over the next couple of decades.
And with South Carolina solar tax credits and rebates, that investment becomes even more affordable. South Carolina is one of the few states with a dedicated state income tax credit for solar, stacking on top of the federal incentive.
Benefits
Why Go Solar in South Carolina
Reduce Your Electric Bill
South Carolina homeowners save an average of $1,000/yr after going solar.
State & Local Incentives
South Carolina offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
South Carolina Solar Incentives & Tax Credits
SC State Solar Tax Credit
Tax CreditSouth Carolina offers a 25% state income tax credit on the cost of your solar system, up to $3,500 per year (or 50% of your tax liability). Unused credits can carry forward for up to 10 years.
Net Metering
Net MeteringSC utilities are required to offer net metering. Excess solar energy is credited at the full retail rate, maximizing your savings.
Property Tax Exemption
Tax ExemptionThe added value of solar panels is excluded from your property tax assessment in South Carolina.
Federal Solar Tax Credit (Expired)
Tax CreditNote: the federal 30% ITC expired December 31, 2025 and can no longer be stacked with the SC state credit. The SC 25% state income tax credit (up to $3,500) now stands as the primary incentive for 2026 purchases.
What Changed in 2026 for South Carolina Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for South Carolina homeowners and what options remain.
Federal ITC Gone — State 25% Tax Credit Still Active
The federal 30% residential solar tax credit expired December 31, 2025. South Carolina's own 25% state income tax credit (capped at $3,500 per year, spreadable over 10 years) remains fully active in 2026 and is now the primary financial incentive for SC homeowners. A typical 8 kW system costing $16,000 generates a $3,500 state credit in year one — and up to $3,500/year until the full 25% is claimed.
Net Metering Still Intact — Duke Energy and Dominion
South Carolina's net metering policy remains active under Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy SC. Excess solar generation is credited at the retail rate, rolling over month to month. The state's Distributed Energy Resource (DER) program has not been restructured for 2026, so existing net metering terms continue for new installations.
Utility-Specific Rebates Available
Duke Energy offers rebates through its PowerPair program for solar-plus-storage installations. Santee Cooper customers can access the state's net metering program as well. With electricity rates averaging $0.14/kWh and 4.8 peak sun hours per day, South Carolina's payback period is longer than coastal states — but the 25% state credit meaningfully closes the gap left by the expired federal ITC.
Common Questions
South Carolina Solar FAQ
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