Solar in South Carolina is a long-haul purchase, and your utility sets how long. Before incentives, a typical owned system pays for itself in about 12.3 years on Dominion Energy, 14.6 on Duke Energy Progress, 15.7 on Duke Energy Carolinas and 24.7 on Santee Cooper. The 25% state credit shortens that if you owe enough state income tax to use it. Our cautious Duke example, with upkeep and most power sent out, takes 27.8 to 37.1 years. Use the power at home: leftover exports earn 4.19 cents per kWh at Duke.
Simple payback before incentives12.3 to 24.7 years
Our cautious Duke example27.8 to 37.1 years
Typical owned 8.45 kW South Carolina system at $24,083 cash (EcoGen Solar Cost Index, September 2026). The range runs from Dominion Energy (12.3 years) to Santee Cooper (24.7 years); the Duke and Dominion figures count every kWh at the average price, so they are the shortest case. These figures count no upkeep and no rise in power prices. The example is ours: Duke Energy Carolinas, 40% of the power used at home at Duke’s 12.82 cents per kWh off-peak price, 60% sent to the grid at 4.19 cents per kWh and $299 a year in owner costs, with the $6,021 state credit (27.8 years) or without it (37.1 years). See the math.
- State tax bill: the credit only lowers South Carolina income tax you owe, at most $3,500 a year.
- Daytime use: every kWh used while the sun is up saves the full price you pay for power.
- Utility: Duke, Dominion, Santee Cooper or a co-op. Only Santee Cooper pays a rebate, until November 30, 2026.
2026 rules: new home systems get no 30% federal homeowner credit (IRS). The 25% state credit has no end date. New Duke and Dominion solar homes go on Solar Choice, where leftover power earns a low credit, and the oldest full-credit systems lost those terms on December 31, 2025.
How we checked this guide
Credit rules come from the South Carolina Code and Form TC-38, utility rules from tariffs on file with the Public Service Commission, and the electricity price from the U.S. Energy Information Administration. The example is the EcoGen Solar Cost Index typical home. Where we assume a number, the page says so.
The writer and checker shown above are EcoGen staff. EcoGen is paid when homeowners request quotes, which is explained beside the quote form. Read our editorial standards.
Which South Carolina homes come out ahead?
Sun and prices are fair here: the typical system costs $2.85 per watt. The household decides the rest. Read each row across.
State income tax
Worth a closer look
You owe at least $7,000 of state income tax a year, so the credit lands in two returns.
Pause and check
You owe little or no state income tax, so the credit has little to reduce.
Check next: last year’s South Carolina return and the tax you owed.
Daytime use
Worth a closer look
Air conditioning, a pool pump or an electric car runs while the panels produce.
Pause and check
The house sits empty all day, so much of the power goes out for a few cents.
Check next: your last 12 months of usage and the home-use share the quote assumed.
Utility
Worth a closer look
The quote models your utility’s export credit and monthly minimum.
Pause and check
A low-use home on Duke, where the $30 minimum stays whatever the panels make.
Check next: your utility’s name on the quote and the export credit it used.
Ownership and time
Worth a closer look
You buy with cash or a low-fee loan and plan to stay well past payback.
Pause and check
A lease, which gives the state credit to the company, or a likely move soon.
Check next: the owner named in the contract, and cash vs financed price.
The 2026 numbers for a typical South Carolina home
Simple payback is the number of years your savings take to cover what you paid: net cost divided by yearly savings. A kWh is the unit your bill counts. First, the typical system by utility, before incentives. Then our worked example on Duke Energy Carolinas, around Greenville and Spartanburg, with the full state credit.
| Utility | Price for home use | Power sent out | Yearly saving | Simple payback |
|---|---|---|---|---|
| Dominion Energy SC | 15.752¢ | Banked at the same price | $1,955 | 12.3 years |
| Duke Energy Progress | 13.700¢ | Netted at the same price; $50 solar charge | $1,651 | 14.6 years |
| Duke Energy Carolinas | 12.708¢ | Netted at the same price; $48 solar charge | $1,530 | 15.7 years |
| Santee Cooper | 11.963¢ | 40.1% at 4.15¢; $120 solar charge | $976 | 24.7 years |
| York Electric Cooperative | 9.527¢ | 33.1% at 4.662¢ | $983 | 24.5 years |
| Blue Ridge Electric Cooperative | 18.940¢ | 0.04% at 6.5¢ | $2,350 | 10.2 years |
How these work: the panels make 12,413 kWh a year (8.45 kW × 1,469 kWh per kW). The price for home use is each utility’s 12-month average home price from EIA with its fixed monthly charge taken out (EIA’s 2024 price for the two co-ops; no charge is taken out at Blue Ridge). The share sent out is the share sent to the grid as reported to EIA, not measured at the meter. Duke and Dominion count every kWh at that price, because power sent out cancels out use in the same time-of-day period, so their figures are the shortest case; if Duke’s $30 monthly minimum applies every month, it is 16.4 years at Progress and 18.2 at Carolinas. Payback is $24,083 ÷ the yearly saving. These figures count no upkeep and no rise in power prices. Horry Electric and Palmetto Electric Cooperative have no figure yet: ask your co-op.
- Cash price
- $24,083
- Confirmed incentives
- $6,021
- Year-one production
- 12,413 kWh
- Used at home / exported
- 40% / 60%
- Price you avoid (Duke off-peak)
- $0.128191/kWh
- Export credit
- $0.0419/kWh
- Owner-cost allowance
- $299/yr
- Used-at-home value
12,413 × 40% × $0.128191$636/yr - Export value
12,413 × 60% × $0.0419$312/yr - Yearly savings after owner costs
$636 + $312 − $299$649/yr - Simple cash payback
($24,083 − $6,021) ÷ $649about 27.8 years
Inputs: the EcoGen Solar Cost Index typical system (8.45 kW, $24,083, September 2026; 1,469 kWh per kW a year) and the 25% credit ($6,021). Owner costs: $253.50 a year ($30 per kW, including a reserve for a new inverter) plus Duke’s solar charge ($0.45 x 8.45 kW = $3.80 a month, about $45.60 a year), about $299 in all. Solar Choice homes on Duke pay time-of-use prices, so we value power used at home at the 12.8191 cents per kWh off-peak price of Schedule R-STOU (effective March 1, 2026), not the 15.64¢ EIA average. Our assumptions: 40% used at home as it is made, 60% sent out at 4.19 cents per kWh. The credit arrives over two or more returns; payback counts it at the start.
Now take the credit away. That is the owner who owes little or no South Carolina income tax: the credit only lowers tax you owe. The savings stay the same. The net cost does not.
| Scenario | Incentives | Net cost | Yearly savings | Simple payback |
|---|---|---|---|---|
| Credit used in full | $6,021 | $18,062 | $649 | about 27.8 years |
| Credit never used | $0 | $24,083 | $649 | about 37.1 years |
Most owners land between the two, because unused credit carries forward. Both cases run past the 25 years panels usually last. They credit every exported kWh at 4.19 cents, the cautious end; netting within each price period, more daytime use or a lower price shortens the wait. The per-utility figures above are the other end: no upkeep, and every kWh counted at the average price.
Try your own South Carolina numbers
It starts with our cautious Duke example, full-credit case. Enter your own quote and your utility’s export credit, then press Calculate. Nothing is sent anywhere.
Example result
about 27.8 years
simple cash payback
- Used-at-home value
- $636/yr
- Export value
- $312/yr
- Owner costs
- −$299/yr
- Yearly savings
- $649/yr
- Net cost
- $18,062
Starts with the full-credit case above. Set incentives to 0 to see the no-credit case. Flat first-year values; rates, panel wear and repairs will change the result. No battery is included.
How the 25% credit reaches you, one return at a time
The credit is 25% of what you pay to buy and install a solar system on a South Carolina home you own. On the typical $24,083 system, that is $6,021. It is not a check: it lowers the state income tax you owe, under two yearly limits. You can use at most $3,500 a year, and never more than 50% of the state income tax you owe that year.
At best, you use $3,500 on your first return and $2,521 on the second. That needs at least $7,000 of state income tax in the first year. If half your yearly state tax comes to $2,000, that is your limit each year, and the same credit takes 4 tax years. Unused credit carries forward for up to 10 years.
You claim it on Form TC-38 after installation. Keep the invoice and your interconnection agreement, the contract that connects you to the grid. A quote that subtracts the whole credit on day one shows money you do not have yet.
Why power you use at home is worth more than power you send out
Solar power the house uses right away saves the full price. Power sent to the grid earns an export credit instead, and here it is low. On Duke Energy Carolinas, leftover power earns 4.19 cents per kWh, about a quarter of the 15.64¢ average price.
Used at home: 4,965 kWh. Each one replaces power you would have bought, so it saves the full variable rate ($0.128191 here).
Sent to the grid: 7,448 kWh. These earn whatever your utility pays for exports ($0.0419 here). That can be far less.
Duke first nets exports against your use in the same price period that month; only the leftover earns the credit. Our example credits all exports at 4.19 cents per kWh, the cautious end, and values home use at Duke’s 12.8191 cents per kWh off-peak price. Peak hours are weekdays 6 to 9 p.m., plus 6 to 9 a.m. December through February. The 15.64¢ average is EIA’s, August 2025 to July 2026.
So daytime use moves the answer. Summer air conditioning runs while the sun is strongest; a pool pump or a midday car charge adds more. An empty house sends more out for a few cents.
Your utility changes the details
- Duke Energy Carolinas and Progress: leftover power earns 4.19 cents per kWh or 4.01 cents per kWh, against off-peak prices of 12.8191 or 12.955 cents. A $30 monthly minimum applies before credits, plus $0.45 or $0.49 per kW a month.
- Dominion Energy South Carolina: extra kWh are banked and cancel out power you buy later in the same time-of-day period at the full price; what is left on your November bill is paid at Dominion’s avoided cost, 3.5 to 4.6 cents per kWh, and the bank resets. Minimum bill $13.50.
- Santee Cooper: the only rebate here, $0.95 per watt up to $5,700, for owners who apply by November 30, 2026. Exports earn 4.15 cents per kWh; a $10 monthly charge is added.
- Berkeley Electric Cooperative: surplus earns 6.03 cents per kWh, and system size is capped by your yearly use.
Buying a home with panels? Duke and Dominion systems that applied between May 16, 2019 and May 31, 2021 keep full credits until May 31, 2029. Ask the utility which program it is on.
Get quotes built on how your home uses power
A South Carolina quote should start from your own usage and name your utility’s credit for extra power.
Solar providers that serve your area may contact you, and they pay EcoGen for the introduction. How we make money.
Cash, loan or lease: who gets the credit?
The credit goes to the taxpayer who owns the system. Cash or a loan keeps that you. In a lease, the company owns the panels and keeps the credit. State law allows leases only from a certified company and does not let a solar company sell you the power itself, so power purchase agreements are not an option.
| Option | Who owns the panels | Upfront | Ongoing | Check before signing |
|---|---|---|---|---|
| Cash | You | Full price | None to a lender. | Keep the invoice and interconnection agreement for Form TC-38. |
| Loan | You | Often $0 | Loan payment, plus your remaining utility bill. | The credit is still yours. A dealer fee can cancel it. |
| Lease | Leasing company | Often $0 | Monthly lease payment, plus your remaining utility bill. | No state credit or Santee Cooper rebate for you. The company needs a state certificate. |
For loan terms and a payment calculator, see our solar financing guide. A system of 20 kW or less is exempt from property tax once you file the application with the Department of Revenue.
Six things a South Carolina quote should spell out
Hold two or three quotes to this list. A quote that cannot answer it has a payback you cannot check.
- Credit shown year by year. At most $3,500 a year, not subtracted from the price up front.
- Your utility by name. Its export credit, its monthly minimum and any solar charge.
- Home-use share. Built from your own 12 months of usage.
- System size and production. kW, year-one kWh and the shading assumed.
- Cash and financed prices. Both totals side by side, with any dealer fee shown.
- Who owns it. Your name as owner, or the lease terms if not.
Compare South Carolina solar quotes
Ask each installer to show the state credit year by year and the export credit your utility pays. Enter your ZIP code to request quotes from solar providers that serve your area.
How EcoGen is paid
EcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. This is not an application to South Carolina’s solar tax credit.
More South Carolina solar guides
- South Carolina solar guide: utilities, incentives and installers in one place
- South Carolina solar companies: compare local installers before you request quotes
- South Carolina solar incentives: the 25% credit, paid over years
- What solar costs in South Carolina
- Free solar panels in South Carolina: what a lease means for the credit
- Are solar panels worth it? The national guide and payback calculator
All 51 state guides
South Carolina solar questions
Is solar worth it in South Carolina without the federal tax credit?
It can be, depending on your utility. The federal homeowner credit ended for systems installed after December 31, 2025. Before any incentive, a typical system pays back in about 12.3 years on Dominion Energy, 14.6 on Duke Energy Progress, 15.7 on Duke Energy Carolinas and 24.7 on Santee Cooper, counting no upkeep. The 25% state credit cuts the net price further. Our cautious Duke example, with upkeep and most power sent out, takes 27.8 years with the credit and 37.1 without it.
How long do solar panels take to pay off in South Carolina?
Simple payback before incentives on a typical owned 8.45 kW system runs from 12.3 years on Dominion Energy to 24.7 years on Santee Cooper, with Duke at 14.6 to 15.7 years. The Duke and Dominion figures are the shortest case. Our cautious Duke example, with upkeep, takes 27.8 years with the state credit and 37.1 without it. Using more of the power at home while the sun is up shortens the wait. A low-use home, a lease or a quick move stretches it.
Why does South Carolina pay so little for exported solar power?
Power you send out first cancels out power you buy in the same time-of-day period, at the full price. Only the leftover earns less. Duke pays 4.19 cents per kWh or 4.01 cents per kWh for each month’s leftover. Dominion banks extra kWh for later months and pays what is left on your November bill at its avoided cost, a wholesale-level rate, then resets the bank. Santee Cooper credits 4.15 cents per kWh. So power used at home is worth far more.
Is a solar battery worth it in South Carolina?
Judge it on its own price, apart from the panels. Its clearest value is backup power in a storm. Duke pays a bill credit of $6.50 per kW a month if you let it use the battery 30 to 36 times a year. Ask for the payback with and without one.
Do solar panels increase home value in South Carolina?
They may, but what a buyer pays for panels is uncertain at sale, so we leave it out of payback. What is certain: a system of 20 kW or less is exempt from property tax once you apply. With a leased system, ask how the lease passes to a buyer.
Does the 25% South Carolina solar tax credit come as a refund?
No. It lowers the state income tax you owe, at most $3,500 a year and never more than 50% of that tax. Unused credit carries forward up to 10 years. On a typical $24,083 system, the $6,021 credit takes two returns at best.
Sources, method and corrections
The per-utility paybacks are EcoGen’s per-utility payback figures of October 19, 2026: simple payback before incentives on the typical $24,083 system, using each utility’s 12-month EIA home price less its fixed monthly charge, and the share sent to the grid as reported to EIA, not measured at the meter. These figures count no upkeep and no rise in power prices. The example uses the EcoGen Solar Cost Index typical South Carolina system (September 2026), Duke Energy Carolinas tariffs and the state credit law. Three inputs are our assumptions, not measured values: 40% of the solar power is used at home as it is made and 60% is sent to the grid, all exports earn Duke’s net excess credit, and owner costs are $30 per kW a year (including a reserve for a new inverter) plus Duke’s solar charge. Power used at home is valued at Duke’s R-STOU off-peak price. Simple payback uses flat first-year values and counts the whole state credit at the start. It includes no rise in electricity prices and no value for the home at sale. The calculator runs in your browser and sends nothing.
Spotted an error? Tell us through our corrections and feedback process.
- S.C. Code 12-6-3587: solar income tax credit (25%, $3,500 and 50% limits)
- S.C. Department of Revenue: Form TC-38 (claiming the credit; 10-year carryforward)
- Duke Energy Carolinas: Rider RSC (net excess credit from January 1, 2026)
- Duke Energy Carolinas: Schedule R-STOU (minimum charge and per-kW solar charge)
- Dominion Energy South Carolina: Solar Choice rider (minimum bill, November payout)
- Santee Cooper: 2026 Solar Home manual (rebate and deadline)
- Berkeley Electric Cooperative: solar (surplus credit and size limit)
- S.C. Code 12-37-220: property tax exemption
- S.C. Code 58-27-2610: solar leases
- Duke Energy Carolinas: Rider RNM (older net metering end dates)
- U.S. EIA: residential price by state (12 months to July 2026)
- IRS: Residential Clean Energy Credit (ended after December 31, 2025)
- EcoGen Solar Cost Index, September 2026 (system size, price and electricity price)
