Key takeaways
- South Carolina has no free solar program. “Free” means $0 at signing on a loan or a lease, repaid over time.
- Pay-per-kWh solar deals (PPAs) are not allowed here. State law lets a company lease panels to you only with a certificate from the Office of Regulatory Staff.
- Only owners get the 25% state tax credit. On a typical $24,083 system that is $6,021, used at no more than $3,500 a year. On a lease you get none of it.
- You can cancel a solar sale or lease until midnight of the tenth calendar day after you sign.
- South Carolina Solar for All never reached homes. The $124.44 million federal grant was terminated in 2025, and no restart has been posted.
About this review
We checked each figure against the statute, regulation, tariff or agency page listed at the end: tax and tariff figures on September 29 to 30, 2026, and lease law, consumer rules, Solar for All and the Santee Cooper loan on October 5, 2026. This page is not tax, legal or financial advice.
Our sourcing and corrections policy: editorial process and content standards.
The “free solar” ads reaching South Carolina homes in 2026 have a simple cause. The federal tax credit for home solar ended for systems finished after December 31, 2025, so a monthly payment with nothing down is the easiest thing left to sell.
“Free” names the upfront cost, nothing more. A typical South Carolina system is 8.45 kW and costs about $24,083, and a $0-down signature leaves that price in place. What the offer decides is whose name is on the equipment, who collects the 25% state credit, and whether the monthly cost beats what Dominion, Duke or Santee Cooper bills you now.
South Carolina Solar for All: awarded, then cancelled
In 2024 the U.S. Environmental Protection Agency (EPA) awarded the South Carolina Office of Resilience $124.44 million for solar on the homes of income-qualified owners and renters. EPA terminated the grant by a memo dated August 7, 2025, before any home was served, and the Office of Resilience began closing it out. A federal court ruled the termination unlawful on September 18, 2026; EPA was weighing an appeal as of October 1. As of October 5, 2026, we found no South Carolina restart or application.
Why South Carolina Bans the Per-kWh Solar Deal
In many states the classic no-money-down deal is a power purchase agreement (PPA): a company owns the panels on your roof and sells you their power per kilowatt-hour (kWh). If a seller offers that here, stop. DSIRE’s May 2026 map of third-party solar sales puts South Carolina among the states that prohibit them, citing Sections 58-27-2610(E) and 58-27-2630(A)(9), and marks it as a state where solar leases are explicitly allowed.
What the law does allow is a lease. Under S.C. Code Section 58-27-2610, a company may lease a system to you only if it holds a certificate from the Office of Regulatory Staff (ORS), the state’s utility watchdog. The limits are specific:
- Size: a leased home system may be no larger than 20 kW AC.
- Flat payments: ORS rules say lease payments must not be calculated on metered output. A lease priced per kWh is a PPA under another name.
- The power is yours: the statute makes the system’s output “the sole and exclusive property” of the household leasing it.
- Penalties: up to $10,000 per occurrence for leasing without a certificate or deceptively.
Zero-Down Solar in South Carolina: Private Loan, Utility Loan or Certified Lease
With the PPA ruled out, nothing-down solar takes one of three forms. They split on who owns the system, and so who can claim the 25% state credit.
| Route | Allowed in South Carolina? | Who claims the 25% credit | What you pay each month |
|---|---|---|---|
| Zero-down solar loan | Yes, through installers and lenders | You, as the owner | A loan payment on the full price, plus any fees built into the loan |
Pros and cons in South Carolina: zero-down loanPros
Cons
Can fit if: the lender shows the cash price next to the amount financed, and the payment beats your savings. | |||
| Santee Cooper solar loan | Yes, for Santee Cooper customers | You, as the owner | Up to $40,000 at 4.75%, over up to 120 months |
Pros and cons in South Carolina: Santee Cooper loanPros
Cons
Can fit if: Santee Cooper sends your bill and you plan to stay put for years. | |||
| Certified solar lease | Yes, only from an ORS-certified company, up to 20 kW AC | Not you; you do not own the system | A flat lease fee that may rise each year, plus your remaining utility bill |
Pros and cons in South Carolina: certified leasePros
Cons
Can fit if: the fee plus your remaining bill stays below today’s bill, escalator included. | |||
No lease-versus-PPA comparison here: PPAs are not legal for South Carolina homes. Loan terms and APRs are in our solar financing guide.
Who Keeps the South Carolina Incentives: Owner or Leasing Company?
Every piece of South Carolina’s own support rewards owning. On a lease, the owner-only money is simply not paid to anyone, so there is no company payment to chart.
| Incentive | If you own it (cash or loan) | If you lease it |
|---|---|---|
| 25% state income tax credit | $6,021, at most $3,500 a year | Nothing |
| Santee Cooper Solar Home rebate | $0.95 per watt, up to $5,700, until November 30, 2026 | Nothing: leased systems do not qualify |
| Credit for extra power | Posts to your utility account | Also posts to your account |
| Property tax exemption | Systems up to 20 kW AC, after the owner files an application | Ask the company how it handles the filing |
The state credit is slower than it looks. Each year you can use the lower of $3,500 or 50% of the South Carolina income tax you owe. On a typical system that means $3,500 in year one and $2,521 in year two, and only if you owe at least $7,000 in state tax each year. Unused credit carries forward for up to 10 years. A loan that assumes a lump-sum “tax credit payment” is built on money that arrives in pieces.
Dominion, Duke, Santee Cooper or Berkeley Electric: The Bill a Lease Must Beat
Extra power you send out earns far less than power you use at home, and each utility keeps a charge solar cannot erase. A payment has to beat what is left of your bill.
| Your utility | Extra power earns | Charge solar cannot remove | Watch for |
|---|---|---|---|
| Duke Energy CarolinasSolar Choice rate | 4.19 cents per kWh | $30 monthly minimum | Duke keeps the system’s renewable energy certificates (RECs) |
| Duke Energy ProgressSolar Choice rate | 4.01 cents per kWh | $30 monthly minimum | Low-use homes pay the minimum anyway |
| Dominion Energy South CarolinaSolar Choice rate | Extra kWh roll forward; the rest is paid out at a low rate in November | $13.50 monthly minimum | An oversized system gives power away each November |
| Santee CooperState-owned utility | 4.15 cents per kWh, counted hour by hour | $10 monthly solar charge | Rebate for owned systems only |
| Berkeley Electric CooperativeMember-owned co-op | 6.03 cents per kWh | $150 one-time application fee | Size cap: yearly kWh / 1,800 |
Solar Choice moves Duke and Dominion homes to a time-of-use rate, with systems capped at 20 kW AC. At Berkeley Electric, a home using 1,050 kWh a month may install only 7 kW. Other co-ops set their own terms: ask in writing.
When Zero-Down Solar Is the Wrong Move in South Carolina
- Your power use is low. Duke’s $30 minimum stays on every bill, so a small home can save little while still paying a loan or lease.
- You owe little state income tax. The credit is limited to 50% of your tax each year, so a retiree with a small tax bill may wait years for it.
- You may move soon. A Santee Cooper loan is due at sale; a lease needs a buyer to take it over.
- You were promised a “free” government program. None is open, and Dominion’s community solar has been full since October 15, 2017.
Check a South Carolina Free Solar Offer in Six Steps
South Carolina has a costly lesson in its recent past. Pink Energy, formerly Power Home Solar, filed for bankruptcy on October 7, 2022, and South Carolina’s attorney general joined a group of state attorneys general asking its lenders to pause payments for customers left with systems that did not work.
- Is it a loan or a lease, in writing?
A price per kWh means a PPA: walk away.
- For a lease, what is the ORS certificate number?
The lease must show it prominently. Check the company against the ORS certified lessor list.
- What is the cash price next to the amount financed?
The gap is the lender’s fee. Compare with our South Carolina cost guide.
- Who claims the 25% credit, and over how many years?
Only an owner can. Ask for a year-by-year schedule using your own state tax bill.
- Which utility and credit did the quote use?
It should include the monthly minimum or solar charge.
- Do you know your exits?
You may cancel without penalty until midnight of the tenth calendar day after signing, and within seven calendar days if the permit or your homeowners association says no. If you are 70 or older and the seller came uninvited, you must get the contract three calendar days before signing.
Stop if a seller quotes a price per kWh, cannot show an ORS certificate for a lease, promises the state credit on a leased system, or wants a signature today.
More red flags are in our solar scam guide. Get at least one more bid from our list of South Carolina solar companies.
Put an Owned System and a Lease Side by Side
Ask each installer for the cash price, the loan payment, the lease fee with its escalator, and your utility’s credit. The tax credit schedule usually decides it.
Enter your ZIP code to compare a cash price, a loan and a certified lease
This is a commercial quote request, not a tax credit, Santee Cooper rebate or Solar for All application. Installer, loan and lease availability depend on your ZIP code and your home.
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More South Carolina Solar Guides
- South Carolina solar incentivesThe 25% credit year by year, and each utility’s rules
- Cost of solar in South CarolinaThe cash price a loan or lease should be held against
- Is solar worth it in South Carolina?Payback on Dominion, Duke and Santee Cooper
- South Carolina solar companiesInstallers working in the state
- Free solar panels in the USWhere programs, leases and PPAs exist
South Carolina Free Solar FAQs
Can you really get free solar panels in South Carolina?
No. No program pays for home panels, and Solar for All was terminated before it served anyone. “Free solar” means $0 at signing on a loan or certified lease, repaid over time.
Can I get zero-down solar in South Carolina?
Yes, two ways. A zero-down loan, from a private lender or, for Santee Cooper customers, the utility’s own loan at 4.75%, makes you the owner and lets you claim the state credit. A lease from an ORS-certified company costs nothing upfront, but the credit is not yours.
Are solar PPAs legal for homeowners in South Carolina?
No. State law bars a solar owner from selling power directly to you, and ORS rules bar lease payments based on output. Certified leases are allowed.
Do I keep the state credit and bill credits on a lease?
You keep the bill credits, because the output belongs to you by law. You do not get the 25% state credit, and Santee Cooper pays no rebate on a leased system.
What happens to my solar lease if I sell the home?
The buyer takes it over, or you buy it out before closing. The lease must disclose its transfer terms; read them before you sign.
Sources and review
All sources read between September 29 and October 5, 2026. If a statute, rule or tariff has changed since, the official version governs.
- S.C. Code 12-6-3587, solar income tax credit (checked Sept. 30, 2026)
- S.C. Department of Revenue, Form TC-38 (checked Sept. 30, 2026)
- S.C. Code 12-37-220(B)(53), property tax exemption (checked Sept. 30, 2026)
- S.C. Code 12-4-720, exemption applications (checked Sept. 30, 2026)
- S.C. Code 58-27-2610, solar leases (checked Sept. 30, 2026)
- Duke Energy Carolinas, Rider RSC, Residential Solar Choice (checked Sept. 30, 2026)
- Duke Energy Progress, Rider RSC, Residential Solar Choice (checked Sept. 30, 2026)
- Duke Energy Carolinas, Schedule R-STOU (checked Sept. 30, 2026)
- Dominion Energy South Carolina, Solar Choice rider to Rate 5 (checked Sept. 29, 2026)
- Dominion Energy South Carolina, Solar for Your Home (checked Sept. 29, 2026)
- Santee Cooper, 2026 Solar Home Program Manual (checked Sept. 30, 2026)
- Santee Cooper, Distributed Generation Rider DG-25 (checked Sept. 30, 2026)
- Berkeley Electric Cooperative, Solar Energy (checked Sept. 30, 2026)
- IRS, Residential Clean Energy Credit (checked Sept. 30, 2026)
- DSIRE, 3rd-Party Solar PPA map, May 2026
- S.C. Regs. Chapter 111, solar lessor rules
- S.C. Regs. 28-78, solar sales and leases
- S.C. Office of Regulatory Staff, solar leasing
- Santee Cooper, solar loans (Oct. 5, 2026)
- Conservation Voters of S.C., Solar for All award (2024)
- S.C. Office of Resilience, EPA termination memo (Aug. 7, 2025)
- Utility Dive, court restores Solar for All (Sept. 21, 2026)
- CFPB, Issue Spotlight: Solar Financing (2024)
- N.C. Department of Justice, Pink Energy lenders letter (Nov. 22, 2022)
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