Solar in South Carolina costs about $2.85 per watt, so the 8.45 kW system South Carolina homeowners typically install runs about $24,083 before incentives. The federal credit is gone for buyers, but the state’s 25% income tax credit still takes about $6,021 off your South Carolina income tax, spread over two or more years.
Price your South Carolina roof before the tax season math
Your state credit, your utility’s export rate and your roof all change the real number. Your ZIP code shows local prices and installers.
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South Carolina’s 25% credit, used over two or more tax years
The One Big Beautiful Bill Act ended the 30% federal credit under Section 25D for systems finished after December 31, 2025. One state credit now does the heavy lifting. Under South Carolina Code §12-6-3587, you can claim 25% of the cost to buy and install a system against your state income tax.
Typical 8.45 kW South Carolina system at $2.85 per watt
The credit is capped at $3,500 a year or 50% of your state tax liability, whichever is less. You carry any balance forward for up to 10 years. For every program in dollar detail, see South Carolina’s solar incentives in detail.
You pay the full price firstThe credit is not a check at closing. The statute says it cannot be claimed before the installation is completed, and the IRS treats a federal purchase as made on completion too, so a 2025 deposit does not rescue a 2026 finish.
A small tax bill stretches the creditIf half your state tax liability is under $3,500, that lower figure is your yearly limit. The credit then takes more years to arrive in full.
The other South Carolina breaks, and the rebate only one utility pays
Beside the 25% credit, two more benefits can apply. Only one of them is cash upfront, and only in one utility’s territory.
A lease is the only route to a federal credit in 2026The company that owns a leased system can claim the commercial credit under Section 48E and may price some of it into your rate. That credit belongs to the owner, not to you. Power purchase agreements are prohibited in South Carolina, so a lease is the only third-party option.
Under §12-37-220(B)(53), the home value a residential system adds is exempt from property tax. You keep the resale value without a higher tax bill.
The one South Carolina utility with an upfront cash rebate. A Trade Ally with a NABCEP-certified crew must install. Funding is first-come with a waitlist, and a 6 kW-AC lifetime cap applies per meter.
Outside Santee Cooper territory there is no state or utility check at purchase. The 25% credit and the exemptions are the reliable savings.
Years to break even in South Carolina
The typical 8.45 kW system makes about 12,413 kWh a year. How long it takes to pay for itself depends on three things: how much of that power your home uses as it is made, the export credit your utility pays for the rest, and how fast you can claim the 25% state credit. The credit is used over two or more tax years, up to $3,500 a year or half your state tax, whichever is less; it is not an upfront rebate.
Exports earn 4.14¢ on Dominion, 4.19¢ on Duke Energy Carolinas and 4.01¢ on Duke Energy Progress, far below the 15.64¢ state average. Duke first nets your use within each time-of-use period, where off-peak power costs 12.8191¢ on Duke Energy Carolinas (Schedule R-STOU, from March 1, 2026) and 12.955¢ on Duke Energy Progress. Santee Cooper uses a three-part rate; its exports earn 4.15¢, plus the $950 per kW rebate.
For the long-horizon view, see whether solar is worth it in South Carolina.
Fixed charges stay on the billDuke holds solar customers to a $30 monthly minimum bill that solar cannot erase. Every utility keeps a fixed monthly charge no matter how much you generate.
Solar Choice net billing: why daytime use beats a bigger array
South Carolina’s investor-owned utilities put solar customers on Solar Choice, a net-billing tariff created by Act 62 of 2019. Solar you use in the moment is credited at retail. The excess you export earns only the avoided-cost rate.
Power your home uses as it is made
It replaces power you would buy. The statewide average residential rate is 15.64¢ per kWh (EIA, August 2025 to July 2026). That blended figure is not any single utility’s rate.
Power you send to the grid
Duke Energy Carolinas pays $0.0419, Duke Energy Progress $0.0401 and Dominion 4.14¢. Santee Cooper’s DG Rider pays 4.15¢, with a separate monthly charge.
Move usage into daylightA home that runs its air conditioning, pool pump or EV charger during the day gets more from the same system. Shifting usage into daylight shortens payback more surely than adding panels.
Santee Cooper sets its own rulesSantee Cooper sits outside the Public Service Commission’s authority, so it runs its own DG Rider rather than Solar Choice.
South Carolina quotes from 6 kW to 12 kW, and what a battery adds
System size moves the total more than any other factor. These are quote ranges at $2.85 per watt, ±12% for installer variation, before incentives. For where South Carolina lands nationally, see the nationwide cost benchmarks.
Quote ranges use $2.85 per watt with a ±12% band. The battery figures add $15,525 for 13.5 kWh of storage at $1,150 per kWh installed. Real quotes vary by roof, equipment and installer.
Why 8.45 kW is the typical sizeIt is the median size South Carolina homeowners installed in 2025 (Berkeley Lab, 129 systems). South Carolina gets 5.37 peak sun hours a day, a solid Southeast resource, so each kilowatt of panels makes 1,469 kWh a year, about 12,413 kWh for the typical system.
The competitive price vs. what quotes show$2.85 is a competitively shopped price. Transacted prices across all sales channels run higher, because they include loan-financed jobs with dealer fees and premium installs.
Coastal wind rules, licensing and old wiring in a South Carolina quote
Equipment is only part of the price. A few South Carolina conditions move the final number, some up and some down.
+What raises a South Carolina quote
- Coastal wind and hurricane engineeringCharleston, Horry and Beaufort counties sit in high-wind zones. The code requires roof-access setbacks and a structural review, and added framing for wind loads brings in a separate licensed trade.
- Licensing and trade rulesInstallers need a licensed residential builder or a specialty registration with an electrical classification, plus a roofing classification for roof mounts. Reputable installers price that in, so a bargain-basement quote deserves a second look.
- Older homes and panel upgradesHomes with under-200-amp service may need a panel upgrade before connecting. That line rarely shows up in a headline per-watt quote.
−What holds the price down
- Low labor costsSouth Carolina labor is inexpensive, which holds the per-watt number down.
- A competitive installer fieldEnough installers compete to keep pricing sharp.
- A large inland roof and a cash purchaseBoth keep the price lower still.
Cash, a solar loan or a lease: three legal paths in South Carolina
With no federal credit for buyers, the way you pay now sets your real cost. There are three practical options, because the fourth, a power purchase agreement, is illegal here.
Pay cash
You own the system
Upfront
The full price, about $24,083 for 8.45 kW.
Monthly
Nothing. You keep every net-billing credit.
Credits
You claim the 25% state credit over the coming years.
Watch out for
No federal credit softens the check in 2026.
The best long-term return: no interest, no lien.
$0-down loan
You own the system
Upfront
$0 down.
Monthly
A loan payment. Confirm it is truly lower than your power bill.
Credits
You claim the 25% state credit.
Watch out for
Dealer fees of 10% to 30% of the cash price, and sometimes over 50%, buried in the amount financed (CFPB).
Ownership without cash, once you see the markup.
Lease
The provider owns the system
Upfront
$0. Legal under Code §58-27-2610, with bill credits directed to your account.
Monthly
A lease payment with an annual escalator.
Credits
The owner claims Section 48E and may pass some of it back in your rate. The state credit goes to the provider.
Watch out for
You give up ownership, the state credit and the net-billing value. Get the escalator in writing.
The only federal-credit route in 2026. PPAs are prohibited.
Ask for the cash price next to the financed priceBerkeley Lab’s Tracking the Sun finds loan-financed systems at a median of $4.70 per watt against $3.50 for cash purchases, with dealer fees part of that spread. See how $0-down solar works in South Carolina.
If you sell the houseBefore you sign a lease, find out what happens to the contract when the home changes hands.
South Carolina homes where Solar Choice solar rarely pays
Solar is not right for every South Carolina home. Think twice if one of these fits:
- Low electricity use. Duke’s $30 minimum bill leaves a small system little room to save. A home using 300 kWh a month can see payback pass the life of the panels. Below 500 kWh a month on Duke’s Solar Choice, rooftop solar rarely pays. Dominion’s minimum charge is lower, but the same logic holds.
- A roof with under 8 to 10 years of life left. Replace it first. Removing and resetting an array for a re-roof is a large extra cost that no solar warranty covers. A 10-year-old roof is the marginal case.
- Heavy shade or a mostly north-facing roof. Less output stretches payback where exports already earn little. Ask the installer to model production with the shade in place.
- You may move within five years. An owned system’s payback will not finish, and the state credit claimed over several years may not arrive in full.
- You rent. Dominion and Santee Cooper community-solar subscriptions fit renters, shaded roofs and the smallest bills better.
Be wary of “free solar”South Carolina learned this from Pink Energy, the installer whose 2022 collapse left tens of thousands of customers owing on systems, some of which underperformed or were never finished. A legitimate lease has clear terms, an escalator you can read and a company likely to be around to honor the warranty.
Five questions for a South Carolina installer, license number first
South Carolina’s licensing rules are specific, and its recent history makes vetting worth the time. Before you sign, ask:
- Are you licensed for this work in South Carolina? Installers need a residential builder’s license or a specialty registration with an electrical classification under Code §40-11-410, plus a roofing classification for roof mounts. Ask for the number and verify it.
- Are your crews NABCEP-certified? It is the leading industry credential, and Santee Cooper rebate work requires it.
- Is a panel upgrade in this quote? With under-200-amp service, confirm whether the upgrade is included or billed later.
- What is the cash price, next to the financed price? A $0-down loan can hide a large dealer fee. Reject any quote that still shows a 30% federal credit for a system you own.
- How do you handle Solar Choice enrollment and interconnection? That paperwork with Dominion or Duke sets your export terms, and an installer who runs it routinely saves you delay.
A ranked comparison of the top solar companies in South Carolina walks through the vetting steps.
Model your payback on Dominion, Duke or Santee Cooper
In a net-billing state, how much power you use in daylight matters as much as the price per watt. Enter your ZIP code for an estimate built on your local rate and roof.
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More South Carolina solar guides
Frequently asked questions
How Much Do Solar Panels Cost in South Carolina in 2026?
A typical 8.45 kW system runs $24,083 before incentives, based on a competitive price of $2.85 per watt. Smaller 6 kW systems start at $15,000, while larger 12 kW systems reach $38,300. With the federal credit gone for purchases, the gross price is also what you pay upfront.
What Is the Solar Cost Per Watt in South Carolina?
A competitively shopped system costs $2.85 per watt installed. Transacted prices recorded across all sales channels run higher, toward the $4 per watt range nationally, because they include loan-financed jobs with dealer fees and premium installs.
How Much Does a 10 kW Solar System Cost in South Carolina?
A 10 kW system runs $25,100 to $31,900 before incentives at the $2.85 per watt competitive price. Adding a 13.5 kWh battery brings it to $40,600 to $47,400, since storage adds $15,525.
Can I Still Get the Federal Solar Tax Credit in 2026?
Not for a purchase. The Residential Clean Energy Credit ended for systems installed after December 31, 2025. A lease can still reach the separate commercial credit, claimed by the system owner, with some value passed back through a lower monthly rate.
What Is the Solar Payback Period in South Carolina?
Usually a long time, and there is no single South Carolina number. Three things set it: how much of your solar power you use at home as it is made, your utility’s export credit (only about 4¢ under Solar Choice), and how fast you can claim the 25% state credit, at most $3,500 a year. Our South Carolina worth-it guide works through the payback on Duke, with yearly owner costs included.
Are Solar Leases and PPAs Allowed in South Carolina?
Leases are legal under Code §58-27-2610, and the bill credits go to the host customer. Power purchase agreements are prohibited statewide, so a lease is the only third-party financing option here.
How we calculate these costs
Cost figures use South Carolina’s entry in the EcoGen Solar Cost Index (September 2026 Edition): a standardized per-watt installed price from a weighted average of Lawrence Berkeley National Laboratory, U.S. Department of Energy and NREL benchmarks, combined with current marketplace data. The 8.45 kW typical size is Berkeley Lab’s 2025 median for South Carolina single-family installs (129 systems). This page gives no single statewide payback, because it depends on home use, each utility’s export credit and how fast the state credit is claimed. The South Carolina worth-it guide shows a worked example on Duke. The 15.64¢ state average is the EIA 12-month residential average, August 2025 to July 2026. Sources were accessed July 9, 2026, unless another date is listed.
Sources (17)
- U.S. Energy Information Administration (EIA), Electric Power Monthly, residential price by state, 12-month average August 2025 to July 2026
- National Renewable Energy Laboratory (NREL), PVWatts Calculator
- South Carolina Code of Laws §12-6-3587, solar energy income tax credit
- South Carolina Code of Laws §12-37-220, property tax exemptions
- Act No. 62, H.3659, South Carolina Energy Freedom Act (signed May 16, 2019), including §58-27-2610 on leases
- South Carolina Office of Regulatory Staff, Energy Freedom Act and Solar Choice resource
- IRS, Residential Clean Energy Credit (updated July 4, 2026): irs.gov
- IRS, FAQs on the accelerated termination of energy provisions under OBBB (August 21, 2025)
- Santee Cooper, Residential Solar Programs: EmpowerSolar
- Berkeley Lab, Tracking the Sun: emp.lbl.gov
- South Carolina Energy Office, Licenses (including SC Department of Labor, Licensing and Regulation requirements)
- CFPB, Solar Financing Market: Issue Spotlight (August 2024)
- NABCEP, Certifications
- Duke Energy Carolinas, Rider RSC (SC): Residential Solar Choice (effective January 1, 2026): etariff.psc.sc.gov
- Duke Energy Progress, Residential Solar Choice Rider RSC (effective January 1, 2026): etariff.psc.sc.gov
- Dominion Energy South Carolina, Rate PR-1: Small Power Production, Cogeneration (January 2026): dominionenergy.com
- Duke Energy Carolinas, Schedule R-STOU: Residential Service, Solar Time-of-Use (effective March 1, 2026)
