*Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy South Carolina rates and Solar Choice export credits current as of July 2026, per South Carolina PSC tariff filings, ORS records, and EIA electricity data.
A typical South Carolina solar system runs 8.58 kW and costs $24,016 before any incentives, at the state’s competitive price of $2.80 per watt. That system produces 12,604 kWh a year, matching a typical home’s use of 12,600 kWh. At the statewide average residential rate of 17.06¢ per kWh, a home using 1,050 kWh a month spends $179 on power.
Solar can erase most of that bill. How fast it pays back depends on one number most homeowners never see: what the utility credits you for the power you send back to the grid.
Find out how much you could save in South Carolina!
Solar Payback in South Carolina
All three regulated South Carolina utilities, Dominion Energy South Carolina and the two Duke companies, now bill solar customers under a setup called Solar Choice. Power you use as your panels produce it offsets the full retail rate. Power you export earns the avoided-cost rate instead. Duke Energy Progress credits net excess energy at 4.01¢ per kWh, Duke Energy Carolinas at 4.19¢, and Dominion’s avoided-cost credit is 4.139¢.
That gap is why self-consumption, the share of your production you use on-site instead of exporting, is the strongest lever on your return in South Carolina. Under a conservative model, 60% of production used on-site, 1.84% annual rate growth, and exports valued at the avoided-cost rate, payback runs 17 to 19 years on the full price and 13 to 14 years after the 25% state credit. Every 10 percentage points of added self-consumption trims payback by 1.7 to 2 years and adds $124 to your first-year savings.
Picture two Duke customers with identical 8.58 kW systems. One runs the air conditioning, pool pump, and EV charger during the day and uses 70% of production on-site. The other works away from home and exports half. The first pays back in 13 to 14 years after the state credit; the second sits at the top of the 17 to 19 year range. Same panels, same sun, different return, driven by when the power is used.
The economics improve with time in one important way. South Carolina’s residential rates have climbed 1.84% a year over the past five years, and the latest EIA data shows the pace quickening, from 15.86 to 17.06¢ between April 2025 and April 2026, a 7.6% jump in a single year.
Every increase widens the gap between the retail power you avoid and the flat cost you locked in with panels. A system that looks like a 17-year payback today shortens as rates climb, which is why homeowners who plan to stay treat solar as a hedge against decades of utility increases.
Here is how payback breaks down by utility, under those same assumptions.
Utility | Self-Consumption Value | Export Credit | Payback (Before State Credit) | Payback (After State Credit) |
|---|---|---|---|---|
Dominion Energy South Carolina | 15.93¢ | 4.139¢ | 17.0 years | 12.7 years |
Duke Energy Carolinas | 14.03¢ | 4.19¢ | 18.9 years | 14.2 years |
Duke Energy Progress | 14.07¢ | 4.01¢ | 19.0 years | 14.2 years |
*Conservative model: 60% self-consumption, 1.84% annual rate growth, exports at the avoided-cost rate. Self-consumption value is the blended retail rate that on-site use offsets under each utility’s required solar time-of-use plan (modeled 15% on-peak, 85% off-peak). Dominion’s higher self-consumption value drives its faster payback despite a similar export credit. Figures exclude fixed monthly charges and Duke’s $30 minimum bill. The table shows payback to one decimal; the text rounds to whole years.
Santee Cooper customers sit outside this table. The state-owned utility uses a three-part rate with a monthly demand charge, so flat cent-per-kWh payback math does not apply. It also offers something no other South Carolina utility does: an upfront rebate of $950 per kW, up to $5,700.
Even in the best case, solar in South Carolina is a long-term commitment, not a quick win. A 13-year payback still leaves more than a decade of low-cost power under warranty, though the early years ask for patience.
What Changed for South Carolina Solar in 2026?
Two changes in 2026 stretched solar payback for every South Carolina homeowner.
The 30% Federal Tax Credit Ended
The 30% residential clean energy credit that once cut thousands off an installed system ended after December 31, 2025. A homeowner who buys a system today claims $0 from it.
The credit still reaches one group indirectly. The business-side Section 48E credit can be claimed by a company that owns the system, which in South Carolina means a leasing provider. You do not file for it, and no homeowner rate exists to claim. Any value reaches you only through the lease pricing.
State Net Metering Rolled Into Solar Choice
On January 1, 2026, the last of South Carolina’s older retail net metering rolled into Solar Choice, the net-billing setup all three regulated utilities now use. Homeowners who applied before mid-2019 lost their retail credits at the end of 2025. A second cliff arrives May 31, 2029, when 2019 to 2021 applicants lose theirs. If you go solar now, you enter Solar Choice from day one, so the avoided-cost export rules are the ones that apply to you.
What still helps is the 25% state tax credit. It covers a quarter of your purchase and installation cost. It is capped at $3,500 a year and 50% of your tax liability, with a ten-year carryforward, so on a $24,016 system the full $6,004 credit is not a single refund. You claim it in pieces over as many years as your tax bill allows.
When Solar Is Worth It in South Carolina
Solar makes the strongest financial sense in South Carolina for homes that use a lot of power while the sun is up and plan to keep the house for years. Exported power earns only 4¢, so the value lives in what you use on-site, and the homes that use the most during daylight see the shortest payback.
South Carolina’s climate helps on the production side. At 5.37 peak sun hours a day, panels here generate strong output, and the long, hot summers that drive up power bills also line up with peak production. The panels make plenty of power. What matters is whether you use that production yourself or export it at the avoided-cost rate.
Situation | Why It Works in South Carolina | What It Means in Practice |
|---|---|---|
Heavy summer AC and daytime use | More production is used on-site at the retail rate instead of exported at 4¢ | Self-consumption stays high, pulling payback toward 13 years |
Plans to stay 13 years or longer | The long payback needs a long hold before the savings turn to profit | Ownership makes more sense than a short lease |
Monthly bills over $200 | More grid power to replace means larger yearly savings | A larger system is easier to justify |
A storm-prone coastal home | Solar paired with a battery keeps essentials running in an outage | The system is built for resilience as much as savings |
A roof replacement already planned | Installing together avoids a costly removal and reinstall later | Solar fits into broader home plans |
Timing and usage drive this more than sunshine does. A Greenville household on Duke that runs central air all summer and charges an EV at midday can hold self-consumption at 70%, which pulls its payback toward the shorter end of that range. A similar home that sits empty during the workday exports much of its production and waits out the full 17 to 19 years.
For a full breakdown of what a system costs by size, start with the cost of solar panels in South Carolina.
When Solar May Not Be Worth It in South Carolina
For a real share of South Carolina homes, solar does not make sense, and the clearest case is low usage.
Duke’s Solar Choice plans carry a $30 monthly minimum bill that solar cannot erase. A home using 300 kWh a month still owes that $30 no matter how much it generates, which is $360 a year of unavoidable cost.
Below 500 kWh a month, solar rarely pays off under Duke’s rules. Dominion’s minimum bill is gentler at $13.50, but the same logic holds: small bills leave little room to save.
A few other situations point away from buying:
- An aging roof. Panels last 25 years, so a roof within ten years of replacement should be redone first. Pulling and reinstalling a 19-panel array later costs $5,000 or more.
- Renters and shaded roofs. Without a suitable roof you own, buying does not work. Community solar through Dominion or Santee Cooper’s Solar Share is the fallback.
- A move within a few years. A 13-year payback cannot pay off in a short stay. A transferable lease, or simply waiting, makes more sense.
- HOA or historic-district limits. South Carolina has no solar-access law, so a homeowners association can restrict panels, and Charleston’s review board can block street-visible arrays.
If buying does not work, free solar panels in South Carolina explains the lease-only market and what to watch for.
Paying for Solar & How It Can Impact The Value
Cash, a loan, and a lease each give a different return in South Carolina, and one common option, the power purchase agreement, is banned here.
Buying With Cash
Paying cash gives the best return. You own the system, keep every credit, and after payback, you get more than a decade of low-cost power. The tradeoff is the upfront $24,016, now with no federal credit to soften it.
Taking a Solar Loan
A loan spreads that cost out and can make sense when the monthly payment beats your current power bill. Watch the dealer fee. Federal consumer regulators found that $0-down solar loans bury fees running 10% to 30% of the cash price, and sometimes past 50%, which quietly raises what you pay for the same panels.
The 25% state credit still applies whether you pay cash or finance, since you own the system either way, so a loan does not cost you the credit.
Third-Party Solar Lease
South Carolina prohibits PPAs but allows leases. With a lease, a company owns the panels and you pay a fixed monthly amount.
By statute, the net-metering bill credits post to your own utility account as the host customer. You skip the upfront cost and the provider claims the federal business credit, but you build no equity and your long-term savings are lower than owning.
South Carolina gives lease customers a 10-day window to cancel, a longer pre-signing wait for buyers age 70 and up, and required disclosure of cancellation and transfer terms, so read those before you sign.
Does a Battery Make Sense in South Carolina?
A battery is worth buying for backup power. As an investment, the numbers do not hold up.
A 13.5 kWh battery adds $13,100 to $17,600 to a system and returns $434 to $520 a year under South Carolina’s export credits, which puts its payback at 26 to 37 years, longer than the equipment warranty.
The reason is the same avoided-cost math: shifting power to use at night saves you the retail rate, but that gain is small against the battery’s price.
Where a battery earns its keep is resilience. Coastal storms and grid outages are a real part of life from Charleston to Myrtle Beach, and a battery paired with solar keeps the refrigerator, lights, and medical equipment running when the grid goes down. Buy one for that reason, and treat the storm protection as the return.
South Carolina has no standing storage incentive for most homeowners. Duke’s PowerPair battery rebate, offered next door in North Carolina, does not run here, so the full cost falls on you.
How to Tell If Solar Is Worth It For Your Home
Before you request a single quote, four factors tell you most of what you need to know.
- Your monthly power bill. Homes spending more than $150 a month have the most to gain; under $100, the savings shrink.
- Your daytime usage. Since exports earn only 4¢, the more power you use while the panels produce, the faster the system pays back.
- Your roof. A roof within ten years of replacement, or one under heavy shade, should wait.
- Your time horizon. Payback runs 13 to 19 years, so staying that long is what turns the system into savings.
Your utility and how you pay fill in the rest. Duke, Dominion, Santee Cooper, and the electric co-ops each set different export credits and minimum bills, and a cash purchase returns more over time than a lease.
What to Look for in a South Carolina Solar Installer
The installer you choose determines whether these numbers become real savings. South Carolina requires solar contractors to hold a residential builder’s license or a specialty registration with an electrical classification, so confirming that license with the state is the first step.
South Carolina has seen how badly a bad actor can hurt homeowners. Pink Energy, a company that sold heavily across the Carolinas, collapsed into bankruptcy in 2022 owing $140 million to tens of thousands of customers, many left paying loans on panels that never worked.
Ask for the license number, confirm it with the state, and check for NABCEP-certified staff before you sign anything. Beyond the license, ask how the company handles permitting and utility interconnection, which in South Carolina runs through your utility’s Solar Choice application and can add weeks to a project. A reputable installer manages that paperwork and warranties the system’s output alongside the equipment.
See the top solar companies in South Carolina for installers vetted against these standards.
Should You Go Solar in South Carolina?
Solar is worth it in South Carolina for some homes and not for others. No single answer fits everyone.
For a household with high daytime power use, a long time horizon, and cash or a low-rate loan, the 13 to 14 year payback after the state credit leads to decades of lower bills. For a low-usage home, a short stay, or a shaded or aging roof, the money is better spent elsewhere, at least for now.
Payback is a useful number, but it is not the whole picture. Your exposure to rising rates, how long you plan to stay, and how you finance the system matter just as much. For the full stack of credits and exemptions behind these figures, see South Carolina solar incentives.
See What Solar Would Do for Your South Carolina Home
Enter your ZIP code and monthly power use to model your own payback by utility, before you talk to a single installer.
Find out how much you could save in South Carolina!
Frequently Asked Questions
For many homeowners, yes. The 30% federal credit ended at the close of 2025, but the 25% state tax credit, rising utility rates, and low installation costs still support the case. After the state credit, a typical system pays back in 13 to 14 years.
A typical system takes 17 to 19 years on the full price and 13 to 14 years after the 25% state credit, under a conservative model with 60% self-consumption and exports valued at the avoided-cost rate. Using more of your own power during the day shortens that timeline.
Since 2022, the regulated utilities credit exported power at the avoided-cost rate under Solar Choice net billing, which runs 4.01 to 4.19¢ per kWh. That is lower than the retail rate you pay, so using power on-site matters more than sending it back.
As a resilience purchase, it can be, especially in storm-prone coastal areas. As an investment, no. A 13.5 kWh battery adds $13,100 to $17,600 and pays back in 26 to 37 years under current export credits, so buy one for backup power and count the resilience as the payoff.
Owned solar systems add to a home’s sale value, and South Carolina exempts that added value from property tax, so the gain does not raise your tax bill. Leased systems are different, since the lease has to transfer to the buyer, which can complicate a sale.
No. It offsets your state income tax, capped at $3,500 a year and 50% of your tax liability, with a ten-year carryforward. On a typical system, you claim the full credit gradually, over two or more tax years.
Methodology: Installed-price figures come from the EcoGen Solar Cost Index, which applies a weighted average to current marketplace quotes combined with Lawrence Berkeley National Laboratory, NREL, and SEIA benchmarks. Payback ranges come from the EcoGen Solar Payback Methodology, run on a conservative model: 60% self-consumption, 1.84% annual rate growth, 0.5% yearly panel degradation, a 25-year horizon, and exported power valued at each utility’s avoided-cost rate. Derived figures, including the typical system size, monthly bill, and annual production, come from EcoGen’s South Carolina State Profile. Actual quotes vary by home, roof, and installer.
Research & Sources:
EcoGen America reviewed federal electricity price data, electric utility survey data, solar production modeling tools, federal tax guidance, South Carolina tax statutes, state solar policy legislation, utility solar tariffs, avoided cost rate schedules, solar rebate materials, distributed solar market research, battery cost benchmarks, consumer finance research, consumer protection enforcement materials, contractor licensing resources, and homeowner association guidance for this article. Sources were accessed July 9, 2026, unless another publication, release, effective, or update date is listed below.
- U.S. Energy Information Administration (EIA). Electric Power Monthly, Table 5.6.B: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, Year-to-Date. Federal residential electricity price data table. Data for April 2026; released June 25, 2026. Accessed July 9, 2026.
- U.S. Energy Information Administration (EIA). Annual Electric Power Industry Report, Form EIA-861 Detailed Data Files. Federal electric utility survey data resource, including net metering, sales, revenue, customer count, and distributed generation data. 2024 final data updated December 3, 2025. Accessed July 9, 2026.
- National Renewable Energy Laboratory (NREL). PVWatts Calculator. Solar photovoltaic energy production modeling tool. Accessed July 9, 2026.
- Internal Revenue Service (IRS). Residential Clean Energy Credit. Federal Section 25D tax credit guidance. Updated July 4, 2026. Accessed July 9, 2026.
- Office of the Federal Register, National Archives and Records Administration. Public Law 119-21: An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14. Federal public law resource related to the One Big Beautiful Bill Act, including clean energy credit provisions. Approved July 4, 2025. Accessed July 9, 2026.
- Congressional Research Service (CRS). Expiration and Carryforward Rules for the Residential Clean Energy Credit. CRS Insight IN12611. By Nicholas E. Buffie. Published September 25, 2025. Accessed July 9, 2026.
- South Carolina General Assembly. South Carolina Code of Laws § 12-6-3587: Purchase and Installation of Solar Energy System for Heating Water, Space Heating, Air Cooling, or Generating Electricity. State solar energy income tax credit statute. Accessed July 9, 2026.
- South Carolina Department of Revenue. SC Schedule TC-38: Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit. South Carolina income tax credit form and instructions. Revised March 28, 2022. Accessed July 9, 2026.
- South Carolina General Assembly. Act No. 62, H.3659: South Carolina Energy Freedom Act. State solar policy legislation, including Section 58-27-2610 related to leases of renewable electric generation facilities. Signed May 16, 2019. Accessed July 9, 2026.
- South Carolina General Assembly. South Carolina Code of Laws § 12-37-220: General Exemption from Taxes. Property tax exemption statute, including renewable energy resource property provisions. Accessed July 9, 2026.
- Duke Energy Carolinas, LLC. Rider RSC (SC): Residential Solar Choice. South Carolina Third Revised Leaf No. 136; Public Service Commission of South Carolina Docket No. 2020-264-E, Order No. 2021-390. Effective January 1, 2026. Accessed July 9, 2026.
- Duke Energy Progress, LLC. Residential Solar Choice Rider RSC. South Carolina Second Revised Leaf No. 663; Public Service Commission of South Carolina Docket No. 2020-265-E, Order No. 2021-390. Effective January 1, 2026. Accessed July 9, 2026.
- Dominion Energy South Carolina, Inc. Rate PR-1: Small Power Production, Cogeneration. Avoided-cost rate schedule for qualifying facilities. Effective for bills rendered on and after the first billing cycle of January 2026. Accessed July 9, 2026.
- Dominion Energy South Carolina, Inc. Rider to Residential Rate 5: Solar Choice for Renewable Energy Facilities. Residential solar choice rider for customer-generators. Effective for bills rendered on and after the first billing cycle of July 2026. Accessed July 9, 2026.
- South Carolina Office of Regulatory Staff (ORS). South Carolina Energy Freedom Act. Solar Choice and Energy Freedom Act consumer resource. Accessed July 9, 2026.
- South Carolina Office of Regulatory Staff (ORS). Duke Energy Solar Choice Rates. Consumer overview of Duke Energy solar choice rates and grandfathering dates under Act 62. Accessed July 9, 2026.
- Santee Cooper. Residential Solar Programs: EmpowerSolar. Solar Home rebate and distributed generation program resource. Accessed July 9, 2026.
- Lawrence Berkeley National Laboratory (Berkeley Lab). Tracking the Sun. Distributed solar pricing, design, and market trend research resource. Accessed July 9, 2026.
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- Consumer Financial Protection Bureau (CFPB). Solar Financing Market: Issue Spotlight. Consumer finance research report on residential solar financing. Published August 2024. Accessed July 9, 2026.
- North Carolina Department of Justice. Attorney General Josh Stein Calls On Five Solar Lending Companies to Suspend Loan Payments and Interest for Pink Energy Customers. Consumer protection enforcement announcement related to solar lending and Pink Energy customers. Published November 22, 2022. Accessed July 9, 2026.
- South Carolina Energy Office. Licenses. Solar installer and contractor licensing resource, including South Carolina Department of Labor, Licensing and Regulation requirements for solar installations. Accessed July 9, 2026.
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