South Carolina solar incentives start with a state income tax credit of 25% of what you pay for a system you own. It does not arrive in one piece. The state limits how much of it you can use each year, so the credit on a typical system takes two or more tax years. Your utility decides the rest: what it pays for extra solar power, and whether it offers a rebate.
Recently changed: the oldest Duke Energy and Dominion solar homes lost their full bill credits on December 31, 2025. Santee Cooper’s rebate window closes on November 30, 2026, or sooner if the money runs out. No extension was announced when we checked.
South Carolina solar incentives in 2026: the tax credit, and what your utility adds
Two things apply across the state. The rest depends on the name at the top of your electric bill.
| Incentive | What you get | Who can get it | When it arrives | Status |
|---|---|---|---|---|
| State income tax credit | 25% of the system cost. $6,006 on a typical system | Owners who pay South Carolina income tax. Not for a leased system | On your state tax returns, at most $3,500 a year | In force. No end date. |
| Santee Cooper Solar Home rebate | $0.95 per watt, up to $5,700 | Santee Cooper customers who own the system | One payment after installation and approval | Open until November 30, 2026 or until the money is gone. |
| Property tax exemption | A system of 20 kW or less is not taxed | Any property owner who files the application | Each year, as tax you do not pay | In force. No end date. |
| Bill credits for extra power | A low rate per kWh, set by your utility | Customers of the utilities listed below | On your monthly bill | Open to new systems. |
The federal tax credit is not on this list. It ended for home systems switched on after December 31, 2025.
How does South Carolina’s solar tax credit pay out?
The credit is 25% of what you pay to buy and install a solar system on a South Carolina property you own. It lowers the state income tax you owe. The law is S.C. Code Section 12-6-3587. It has no end date for solar.
Example: a system that costs $10,000 earns a credit of $2,500.
Two yearly limits decide how fast you get it. In any one year you can use at most $3,500. You also cannot use more than 50% of the state income tax you owe that year. The lower of the two applies. What you cannot use moves to the next year, for up to 10 years.
It is not a refund. If you owe little South Carolina income tax, the credit has little to reduce.
The credit on a typical 8.58 kW system
A typical system costs $24,024. The credit is $6,006. At best you use $3,500 on the first return and $2,506 on the second. For that, you must owe at least $7,000 of state income tax in the first year.
Example: if you owe $4,000 a year, your limit is $2,000 a year. The same credit then takes 4 tax years.
Watch out: A quote that subtracts the whole credit from the price shows money you do not have yet. You pay the full price first.
How you claim it
You claim it on Form TC-38, filed with your South Carolina income tax return. You cannot claim it before the installation is complete.
The system must be certified. For a system connected to the grid, the Department of Revenue says your interconnection agreement counts. That is the contract in which your utility lets you connect. Keep a copy with your tax records.
A leased system does not earn you the credit
The credit goes to the taxpayer who owns the system and paid for it. With a lease, that is the leasing company. South Carolina allows solar leases only from a company certified by the Office of Regulatory Staff, the state’s utility watchdog (S.C. Code Section 58-27-2610). The same law does not let a solar company sell you the power itself, a contract known as a power purchase agreement (PPA).
Source: South Carolina Code, Title 58, Chapter 27, Article 23
Dominion, Duke, Santee Cooper or Berkeley Electric: who bills you?
The state tax credit is the same everywhere. The bill credits, the monthly minimums and the one rebate are not. Open your utility to see only what applies to your home.
Dominion Energy South CarolinaColumbia, Charleston and much of the Midlands and the Lowcountry.No rebate. Extra power rolls forward until November.
What you can get with Dominion Energy South Carolina
- RebateNone
Dominion says it does not offer cash rebates or financing for home solar.
- Credit for extra powerkWh roll forward
Extra kWh lower your use in later months. What is left in November is paid out at a low rate, then the balance goes back to zero.
- Monthly minimum bill$13.50
You owe this every month, however much your panels make.
Your bill credits
Dominion calls its program Solar Choice. You move to Rate 5, a time-of-use plan: the price of power changes by the time of day. Extra power offsets use in the same price period first.
Unused kWh carry to the next month. On your November bill, Dominion pays the leftover at its avoided cost: the low price it would pay a power plant for the same energy. The winter rates in that price sheet are 3.5 to 4.6 cents per kWh. You can stay on the program for at least 10 years.
Watch out: A system that makes much more than you use in a year gives the extra away at the November rate. Apply through Dominion’s PowerClerk portal before installing.
Statewide: the tax credit and the property tax exemption.
Duke Energy (Carolinas and Progress)Duke Energy Carolinas serves the Upstate, around Greenville and Spartanburg. Duke Energy Progress serves the Pee Dee, around Florence and Sumter.No rebate. Extra power earns 4.19 cents per kWh or 4.01 cents per kWh.
What you can get with Duke Energy (Carolinas and Progress)
- Credit for extra power, Duke Energy Carolinas4.19 cents per kWh
Example: 100 extra kWh earn $4.19.
- Credit for extra power, Duke Energy Progress4.01 cents per kWh
Example: 100 extra kWh earn $4.01.
- Monthly minimum charge$30
It applies before your credits. Your credits then lower the rest of the bill.
- Battery bill credit$6.50 per kW a month
For letting Duke use your home battery 30 to 36 times a year. For a battery, kW is the power it can give at one moment. Example: 5 kW earns $32.50 a month, before Duke adjusts for how your battery performs.
Your bill credits
Duke also calls its program Solar Choice. You move to a time-of-use plan, where the price of power changes by the time of day. Each month, Duke compares what you made with what you used inside each price period.
Extra kWh do not roll forward. Each month’s extra becomes a dollar credit at the rate above, which is reset each year.
You also pay a small monthly charge per kW of solar: $0.45 at Duke Energy Carolinas and $0.47 at Duke Energy Progress. For a 10 kW system that is $4.50 or $4.70 a month.
Watch out: A home that uses little power still pays the $30 minimum each month. Ask your installer to size the system to your daytime use. Duke also keeps your RECs, the certificates that prove your power came from solar.
Statewide: the tax credit and the property tax exemption.
Santee CooperState-owned utility. This panel is for homes that get their bill from Santee Cooper itself.Rebate up to $5,700, until November 30, 2026.
What you can get with Santee Cooper
- Solar Home rebate$0.95 per watt
Paid once, on up to 6 kW of solar, so at most $5,700. Example: a 5 kW system gets $4,750. The cap is lower if your home’s highest power use in the past 12 months was below 6 kW.
- Credit for extra power4.15 cents per kWh
Example: 100 extra kWh earn $4.15. Santee Cooper counts hour by hour, so only power you send out in an hour earns the credit.
- Monthly solar charge$10
Added to your normal customer charge once you have solar.
Your bill credits
Santee Cooper sets its own credit in a price sheet called the Distributed Generation Rider. In each hour, the power you send out is subtracted from the power you take in. Net exports earn 4.15 cents per kWh. If a month ends with a credit of $50 or more, Santee Cooper mails a check. A smaller credit moves to your next bill.
Watch out: The rebate has conditions. You must own the system: a leased system gets nothing. Your installer must be a Trade Ally, a company on Santee Cooper’s installer list, with a sign-off letter from a NABCEP-certified professional (NABCEP is the solar industry’s installer certification). The application is due within 90 days of installation and by November 30, 2026. Money is first come, first served. Santee Cooper does not post how much is left.
Statewide: the tax credit and the property tax exemption.
Berkeley Electric CooperativeMember-owned co-op in Berkeley, Charleston and Dorchester counties.No rebate. Extra power earns 6.03 cents per kWh.
What you can get with Berkeley Electric Cooperative
- Credit for extra power6.03 cents per kWh
Example: 100 extra kWh earn $6.03. The co-op updates the rate each year around March 1.
- Size limitYearly kWh / 1,800
Your yearly kWh use divided by 1,800 is the largest system the co-op will connect. Example: a home that uses 1,050 kWh a month may install 7 kW, less than the typical 8.58 kW system.
- Application fee$150
One time, with the interconnection application: your request to connect.
Your bill credits
All new home solar systems go on the co-op’s Renewable Generation Surplus rate. Power you use at home lowers your bill directly. Power you send to the co-op earns 6.03 cents per kWh.
The rate is not available on time-of-day or demand plans.
Watch out: A quote sized for another utility can be too large for Berkeley Electric. Check the size limit before you sign.
Statewide: the tax credit and the property tax exemption.
Not listed? South Carolina’s other electric co-ops and city utilities set their own solar rates. Ask yours for its current solar rate sheet in writing before you sign.
Ask installers which South Carolina utility rules their numbers use
Enter your ZIP code to request quotes from installers in your area. A good quote names your utility and its credit for extra power.
- The credit follows the ownerOnly a system you buy earns the state tax credit. A quote for a lease should say so.
- Your utility sets the bill creditDominion, Duke Energy, Santee Cooper and the co-ops each set their own.
- Your details stay with matched installersWe share them only with the installers you are matched with.
Does South Carolina have net metering?
Not in the old sense. Net metering means the utility credits you for solar power you send to the grid. South Carolina’s large utilities no longer credit that power at the full price you pay. New systems get a lower credit: 4.19 cents per kWh at Duke Energy Carolinas, 4.15 cents per kWh at Santee Cooper.
Watch out: Home systems on these programs may be at most 20 kW. The rates are in the utility panels above.
If your home already has solar
Older Duke Energy and Dominion systems had full credits: each extra kWh offset a kWh you bought. Those programs closed to new homes on June 1, 2021.
Systems that applied between May 16, 2019 and May 31, 2021 keep the old terms until May 31, 2029. Earlier systems lost them on December 31, 2025. Buying a home with panels? Ask the seller which program the system is on, and get the answer from the utility in writing.
Property tax and sales tax on a South Carolina solar system
Property tax: exempt, but you must apply
A solar system of 20 kW or less is exempt from South Carolina property tax. The size is measured at the inverter, the box that turns solar power into household power. The exemption also covers the inverter and a home battery. The law is S.C. Code Section 12-37-220(B)(53). It has no end date.
It is not automatic. Under Section 12-4-720, the owner files an application for exemption with the South Carolina Department of Revenue. Ask the Department which form it uses for this exemption, and ask your county assessor how the exemption shows on your bill.
Sales tax: no exemption found
The state’s list of sales tax exemptions (Section 12-36-2120) does not name home solar equipment. Plan for sales tax in the price, and ask your installer to show it as its own line in the quote.
Why a South Carolina home ends up with less than the quote says
- You lease the system. The state tax credit and the Santee Cooper rebate both go only to an owner.
- You owe little South Carolina income tax. Each year’s credit stops at 50% of the tax you owe. Retirees and lower earners can need many years, and any credit left after 10 years is lost.
- You are a Santee Cooper customer who installs after November 30, 2026. Later projects can only join a waiting list for the next program period, unless Santee Cooper extends this one.
- You rent and hope to join Dominion’s community solar. It has been full since October 15, 2017. You can only join a wait list.
South Carolina solar paperwork, in order
- Before you sign: name your utility and your tax picture. Ask which utility program the quote assumes. Check how much state income tax you owe in a normal year. That sets how fast the credit arrives.You, with your installer and your tax preparer.
- Before installation: get the utility’s approval to connect. Dominion, Santee Cooper and Berkeley Electric want the interconnection application before installation.Your installer files. You sign.
- After switch-on: file for the property tax exemption. Send the application for exemption to the South Carolina Department of Revenue.You.
- At tax time: file Form TC-38. Claim the credit for the year the installation was completed, and carry the unused part forward. Got a Santee Cooper rebate? Ask a tax professional if it lowers the cost you can claim. The sources we read do not say.You or your tax preparer.
Request South Carolina quotes, then check the tax credit math
Your ZIP code starts a quote request with installers near you. Ask each one to show the state credit year by year.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- A quote request, nothing moreThe form asks local installers for quotes. It files no tax form or rebate application.
- Home questions firstYou answer a few questions about your home. Your name, email and phone come last.
- You decideQuotes are free. You never have to sign.
More South Carolina solar guides
South Carolina solar incentive questions
Does South Carolina Have a Solar Tax Credit?
Yes. South Carolina gives a state income tax credit of 25% of the cost of a solar system you own. You can use at most $3,500 a year, and never more than 50% of the state income tax you owe that year. Unused credit carries forward for up to 10 years.
Is the Federal Solar Tax Credit Still Available in South Carolina?
No, not for a system you own. The federal credit for home solar ended for systems switched on after December 31, 2025.
Does South Carolina Have Net Metering?
Not at the full price for new systems. Duke Energy credits extra power at 4.19 cents per kWh or 4.01 cents per kWh. Dominion lets extra kWh offset later use and pays out the leftover each November. Santee Cooper credits 4.15 cents per kWh.
Does Santee Cooper Offer a Solar Rebate?
Yes. Santee Cooper pays $0.95 per watt on up to 6 kW, so at most $5,700, to customers who own the system. The current program window ends November 30, 2026, and money is first come, first served.
Do Solar Panels Raise Property Taxes in South Carolina?
No, for a system of 20 kW or less, once you file an application for exemption with the South Carolina Department of Revenue. The exemption is in S.C. Code Section 12-37-220(B)(53).
Sources (20)
- S.C. Code 12-6-3587, solar income tax credit (checked Sept. 30, 2026): scstatehouse.gov
- S.C. Department of Revenue, Form TC-38 (checked Sept. 30, 2026): dor.sc.gov
- S.C. Code 12-37-220(B)(53), property tax exemption (checked Sept. 30, 2026): scstatehouse.gov
- S.C. Code 12-4-720, exemption applications (checked Sept. 30, 2026): scstatehouse.gov
- S.C. Code Title 12, Chapter 36, sales and use tax (checked Sept. 30, 2026): scstatehouse.gov
- S.C. Code 58-27-2610, solar leases (checked Sept. 30, 2026): scstatehouse.gov
- Duke Energy Carolinas, Rider RSC, Residential Solar Choice (checked Sept. 30, 2026): etariff.psc.sc.gov
- Duke Energy Progress, Rider RSC, Residential Solar Choice (checked Sept. 30, 2026): etariff.psc.sc.gov
- Duke Energy Carolinas, Schedule R-STOU (checked Sept. 30, 2026): etariff.psc.sc.gov
- Duke Energy Progress, Schedule R-STOU (checked Sept. 30, 2026): etariff.psc.sc.gov
- Duke Energy Carolinas, Rider PM, battery control (checked Sept. 30, 2026): etariff.psc.sc.gov
- Duke Energy Carolinas, Rider RNM (checked Sept. 29, 2026): etariff.psc.sc.gov
- Dominion Energy South Carolina, Solar Choice rider to Rate 5 (checked Sept. 29, 2026): dominionenergy.com
- Dominion Energy South Carolina, Rate PR-1 (checked Sept. 30, 2026): etariff.psc.sc.gov
- Dominion Energy South Carolina, Solar for Your Home (checked Sept. 29, 2026): dominionenergy.com
- Santee Cooper, 2026 Solar Home Program Manual (checked Sept. 30, 2026): santeecooper.com
- Santee Cooper, Solar Home program page (checked Sept. 30, 2026): santeecooper.com
- Santee Cooper, Distributed Generation Rider DG-25 (checked Sept. 30, 2026): santeecooper.com
- Berkeley Electric Cooperative, Solar Energy (checked Sept. 30, 2026): berkeleyelectric.coop
- IRS, Residential Clean Energy Credit (checked Sept. 30, 2026): irs.gov
