South Carolina Solar: A 25% Tax Credit, $3,500 a Year

A typical South Carolina home system is 8.45 kW and costs about $24,083 in cash at $2.85 per watt. The state gives 25% of that back, $6,021, as an income tax credit, but at most $3,500 a year. In our Duke Energy Carolinas example the system pays for itself in 27.8 years with the full credit and 37.1 years without it.

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South Carolina’s 25% solar tax credit comes back over several tax years

The credit is 25% of what you pay to buy and install solar on a South Carolina home you own. It lowers the state income tax you owe. It is not a refund, and two yearly limits decide how fast it arrives.

25%Of the system cost

$6,021 on the typical $24,083 system. The law has no end date for solar.

$3,500Most you can use a year

Per home system, whatever the size of the credit.

50%Of the tax you owe

Each year’s use also stops at half your state income tax, if that is lower.

10 yearsTo use the rest

Unused credit carries forward up to 10 years, then it is lost.

The $6,021 credit, by tax year
Tax yearYou owe $7,000 or moreYou owe $4,000
First$3,500$2,000
Second$2,521$2,000
ThirdUsed up$2,000
FourthUsed up$21
How you claim it, and who cannot
  • You claim it on Form TC-38 with your South Carolina income tax return, for the year the installation is complete. Keep your interconnection agreement: the Department of Revenue accepts it as the system’s certification.
  • The table assumes the same state tax bill each year. $3,500 is half of $7,000, so you need at least $7,000 of state income tax to use the full $3,500 in one year.
  • Only the owner who paid for the system gets the credit. With a lease, that is the leasing company.
  • Got a Santee Cooper rebate? Ask a tax professional whether it lowers the cost you can claim. The sources we read do not say.

Payback on a Duke Energy Carolinas home, with and without the South Carolina credit

Duke’s Solar Choice plan values each kWh your panels make in one of two ways. Our cases assume 40% is used at home as it is made and 60% is sent to the grid.

Power you use at home 12.8191¢ off-peak

  1. Your home uses it the moment the panels make it.
  2. You do not buy that kWh from Duke.
  3. It saves Duke’s time-of-use price: 12.8191¢ off-peak on Schedule R-STOU.

Power you send out 4.19¢ if left over

  1. Each month Duke nets what you send out against what you buy, inside each price period.
  2. Any kWh left over in a period earns 4.19¢ (Rider RSC, 2026).
  3. Leftover kWh do not roll into the next month.
Typical 8.45 kW system on Duke Energy Carolinas
CaseYour costYear-one savingsAfter upkeep and solar chargeSimple payback
You use the whole 25% credit$18,062$949$64927.8 years
You owe too little tax to use it$24,083$949$64937.1 years

Swipe the table sideways to see every column.

These are the slow end. Power you send out and buy back in the same price period counts at Duke’s full price, so a home that uses more of its solar while the sun is up pays back sooner.

How we calculated this
  • Output: 8.45 kW × 1,469 kWh per kW = 12,413 kWh a year.
  • Savings: 4,965 kWh used at home × 12.8191¢, plus 7,448 kWh sent out × 4.19¢, is $949. We count every kWh sent out at 4.19¢, which is the slowest case.
  • Upkeep: $30 per kW a year, $253.50, including an inverter reserve. Duke’s solar charge: 8.45 kW × $0.45 a month × 12, about $46. Together $299.50, which leaves $649.
  • Payback: your cost ÷ $649. The first case takes the $6,021 credit off $24,083, though it arrives over two tax returns at best. No financing, rate changes or panel aging.
  • 12.8191¢ is Duke’s off-peak price on Schedule R-STOU from March 1, 2026. Peak is 6 to 9 p.m. on weekdays, plus 6 to 9 a.m. from December to February.
  • We did not model Duke Energy Progress (4.01¢ for leftover power, 12.955¢ off-peak), Dominion, Santee Cooper or the co-ops.

What Duke, Dominion and Santee Cooper pay for your extra solar power

The 25% credit is the same across South Carolina. The credit for power you send out, the monthly minimum and Santee Cooper’s rebate depend on the name at the top of your electric bill.

Duke Energy Carolinas or Progress

4.19¢ or 4.01¢ per kWh left over

Carolinas serves the Upstate, around Greenville and Spartanburg. Progress serves the Pee Dee, around Florence and Sumter. $30 monthly minimum, plus $0.45 or $0.47 a month per kW of solar. Duke keeps your RECs, the certificates that prove the power came from solar.

Next: ask for savings priced on Duke’s time-of-use plan.

Dominion Energy South Carolina

3.5¢ to 4.6¢ in November

Columbia, Charleston and much of the Midlands and the Lowcountry. Extra kWh roll forward month to month. Whatever is left in November is paid out at Dominion’s avoided cost, then the balance resets. $13.50 monthly minimum bill.

Next: size the system to your yearly use, not above it.

Santee Cooper

4.15¢ per kWh sent out

The state-owned utility, for homes billed by Santee Cooper itself. It nets hour by hour and adds a $10 monthly solar charge. A month that ends $50 or more in credit gets a check.

Next: apply for the rebate before November 30, 2026.

Credit for power sent out from a new home system
UtilityCredit per kWhWhat earns itExtra cost for solar homes
Duke Energy Carolinas4.19¢Each month’s leftover, per price period$30 minimum; $0.45 per kW a month
Duke Energy Progress4.01¢Each month’s leftover, per price period$30 minimum; $0.47 per kW a month
Dominion Energy SC3.5¢ to 4.6¢The year’s leftover, paid in November$13.50 minimum bill
Santee Cooper4.15¢Each hour’s net export$10 a month
Berkeley Electric Cooperative6.03¢Every kWh sent to the co-op$150 application fee

Swipe the table sideways to see every column.

Co-ops, size limits and older solar homes

Berkeley Electric Cooperative serves Berkeley, Charleston and Dorchester counties. It caps a home system at your yearly kWh use divided by 1,800, so a home using 12,600 kWh a year may connect 7 kW AC. It updates its credit around March 1 each year. South Carolina’s other co-ops and city utilities set their own rates: ask yours for its solar rate sheet in writing.

On Duke’s and Dominion’s Solar Choice plans a home system may be at most 20 kW AC. Homes that applied for the older full-credit net metering between May 16, 2019 (Dominion: May 17) and May 31, 2021 keep it until May 31, 2029. Earlier systems lost it on December 31, 2025.

Santee Cooper’s Solar Home rebate closes November 30, 2026

None of the other utilities on this page offers a rebate. Santee Cooper pays one once, to customers who own their system, while the money lasts.

$0.95Per watt AC

A 5 kW AC system gets $4,750.

$5,700Most you can get

On up to 6 kW AC, or less if your home’s highest use in the past 12 months was lower.

Nov 30Application deadline

By 5 p.m. on November 30, 2026, unless Santee Cooper extends the program.

90 daysTwo time limits

Install within 90 days of the approval to connect, and apply within 90 days of installing.

A leased system gets nothing. Your installer must be a Santee Cooper Trade Ally, with a sign-off letter from a NABCEP-certified professional. Santee Cooper does not post how much money is left.

An 8.45 kW South Carolina system costs about $24,083

At the September 2026 benchmark of $2.85 per watt. These are modeled cash prices, not quotes we collected, with the 25% credit each size would earn.

Cash price, output and state credit by size
Size (kW DC)
Cash price
Power made a year
25% state credit
5 kW
$14,250
7,345 kWh
$3,563
8 kW
$22,800
11,752 kWh
$5,700
8.45 kW (typical)
$24,083
12,413 kWh
$6,021
12 kW
$34,200
17,628 kWh
$8,550

Swipe the table sideways to see every column.

How we got these numbers
  • 8.45 kW is the median size South Carolina homeowners installed in 2025 (Berkeley Lab, 129 systems). Size yours to your own use.
  • Output uses the Cost Index figure of 1,469 kWh per kW a year. Shade lowers it.
  • The credit is 25% of the cash price, used at most $3,500 a year. The 12 kW credit takes three tax years at best.
  • South Carolina homes paid 15.64¢ per kWh on average in the 12 months to July 2026 (EIA). That average includes fixed charges.
  • A system you own gets no federal tax credit after December 31, 2025.

South Carolina property tax, leases and other ways to pay

Beyond the 25% credit and Santee Cooper’s rebate, South Carolina helps in one more way: the system is not taxed as property.

$0Property tax

On a system of 20 kW AC or less, including the inverter and a battery. You must file for it with the Department of Revenue.

NoneSales tax exemption

Not on the state’s list of exemptions.

$0Federal tax credit

Not for a system you own placed in service after December 31, 2025.

$6.50/kWDuke battery credit

A month, for letting Duke use your home battery 30 to 36 times a year.

Ways to pay, and who gets the 25% credit
Way to payWho owns the panelsWho gets the creditCheck before you sign
CashYouYouKeep the invoice and interconnection agreement for Form TC-38
LoanYouYouFinanced total vs. cash price; a dealer fee can cancel out the credit
LeaseThe companyThe companyIt needs a certificate from the Office of Regulatory Staff; no Santee Cooper rebate
PPANot offeredThe state lease law does not let a solar company sell you the power

Swipe the table sideways to see every column.

Things sold as South Carolina incentives that are not
  • Dominion community solar: full since October 15, 2017. You can only join a wait list.
  • A Dominion rebate: Dominion says it offers no cash rebates or financing for home solar.
  • The federal credit on a quote: it ended for systems you own placed in service after December 31, 2025. Strike it.

When solar makes sense for a South Carolina home

  • Your state tax billThe credit is worth most when you owe $7,000 or more a year. Retirees and lower earners collect it more slowly.
  • Daytime usePower used at home saves your full price. Leftover power earns about 3.5¢ to 6¢.
  • Shade and roofTrees cut output. Replace an old roof first, or get the remove-and-reinstall cost in writing.
  • Time in the homeWith paybacks above 25 years in our Duke cases, compare your planned stay with your quote’s payback.

Two installers with active South Carolina licenses

A to Z, not ranked. Facts from their own sites and the South Carolina license registry, read October 13 to 14, 2026.

Palmetto

Office
Charlotte, NC (headquarters)
SC license
Electrical contractor 115341, active October 13, 2026
Warranty
10-year workmanship, 5-year roof penetrations
More facts
Who installs
Its subsidiary PlugPV or a partner; ask which
Ways to pay
Purchase, loan or a LightReach plan that Palmetto owns
Palmetto profile

Renu Energy Solutions

Office
Columbia, SC (headquarters Charlotte, NC)
SC licenses
General contractor 119903 and electrical contractor CLM.113782, active October 13, 2026
Warranty
No terms published, apart from battery makers’ 10 to 15 years
More facts
Since
2010 (company says)
Ways to pay
Cash, loan, LightReach lease, Participate Energy prepaid plan
Renu Energy Solutions profile

Purelight Power has shut down, so it is not listed here. If you have a Purelight system, check the panel and inverter makers’ own warranties. How we make money.

Six things a South Carolina solar quote should spell out

  • The credit, year by yearAt most $3,500 a year and half your state tax, not taken off the price up front.
  • Your utility and its planDuke, Dominion, Santee Cooper or your co-op by name, its credit for leftover power and the time-of-use prices used.
  • Your home-use shareThe share of solar power you are expected to use at home as it is made, built from your own 12 months of bills.
  • Size against the limit20 kW AC on Solar Choice; at Berkeley Electric, your yearly kWh divided by 1,800.
  • Taxes done rightSales tax as its own line, and no federal credit on a system you own.
  • A South Carolina licenseA number you can look up in the state license lookup; for the Santee Cooper rebate, Trade Ally status too.

Comparing South Carolina quotes?

Ask each installer to show the 25% credit against your own state tax bill, one year at a time.

Check your South Carolina home for solar

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. Privacy policy

South Carolina Solar FAQs

Does South Carolina have net metering?

Not at the full price for new systems. Duke credits each month’s leftover power at 4.19¢ (Carolinas) or 4.01¢ (Progress). Dominion rolls extra kWh forward and pays out the rest each November. Santee Cooper credits 4.15¢ and Berkeley Electric 6.03¢.

Does the 25% solar tax credit come as a refund?

No. It lowers the South Carolina income tax you owe, at most $3,500 a year and never more than half that tax. Unused credit carries forward up to 10 years. On the typical $24,083 system, the $6,021 credit takes two tax returns at best.

Can I lease solar panels or sign a PPA in South Carolina?

You can lease, from a company certified by the Office of Regulatory Staff, but the company then gets the 25% credit and you get no Santee Cooper rebate. The same law does not let a solar company sell you the power, so a PPA is not offered.

I am buying a home with solar. Does it keep full net metering?

Only if the system applied to Duke between May 16, 2019 and May 31, 2021, or to Dominion from May 17, 2019. Those keep the older full credits until May 31, 2029. Earlier systems lost them on December 31, 2025. Get the answer from the utility in writing.

Do solar panels raise property taxes in South Carolina?

No, for a system of 20 kW AC 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) and has no end date.

Where the South Carolina figures come from

Sources (26 documents, each with the date we read it)
  1. EcoGen Solar Cost Index, September 2026: South Carolina$2.85 per watt, 8.45 kW median size (Berkeley Lab 2025, 129 systems), 1,469 kWh per kW.
  2. S.C. Code Section 12-6-3587: solar income tax credit25%, $3,500 a year and 50% of tax owed. Read September 30, 2026.
  3. S.C. Department of Revenue: Form TC-38How to claim; 10-year carryforward; interconnection agreement as certification. Read September 30, 2026.
  4. Duke Energy Carolinas: Rider RSC, Residential Solar Choice4.19¢ for net excess energy, netting per price period, 20 kW AC limit, RECs. Effective January 1, 2026. Read October 14, 2026.
  5. Duke Energy Carolinas: Schedule R-STOU12.8191¢ off-peak, peak hours, $0.45 per kW, $30 minimum. Effective March 1, 2026. Read October 14, 2026.
  6. Duke Energy Progress: Rider RSC, Residential Solar Choice4.01¢ for net excess energy. Read September 30, 2026.
  7. Duke Energy Progress: Schedule R-STOU$0.47 per kW, $30 minimum. Read September 30, 2026; 12.955¢ off-peak from EcoGen’s October 6, 2026 tariff review.
  8. Duke Energy Carolinas: Rider PM, battery control$6.50 per kW a month, 30 to 36 events a year. Read September 30, 2026.
  9. Duke Energy Carolinas: Rider RNMOlder net metering dates. Read September 29, 2026.
  10. Dominion Energy South Carolina: Solar Choice rider to Rate 5$13.50 minimum bill, November payout, 20 kW AC limit. Read September 29, 2026.
  11. Dominion Energy South Carolina: Rate PR-1Non-summer energy credits of 3.511¢ to 4.645¢. Read September 30, 2026.
  12. Dominion Energy South Carolina: Solar for your homeNo rebates or financing; community solar full since October 15, 2017. Read September 29, 2026.
  13. Santee Cooper: 2026 Solar Home program manual$0.95 per watt AC, 6 kW cap, November 30, 2026 deadline, 90-day limits, Trade Ally rule. Read September 30, 2026.
  14. Santee Cooper: Solar Home program page$950 per kW up to $5,700, no closure notice. Read October 14, 2026.
  15. Santee Cooper: Distributed Generation Rider DG-254.15¢ hourly net exports, $10 monthly charge, $50 check rule. Read September 30, 2026.
  16. Berkeley Electric Cooperative: Solar energy6.03¢, $150 fee, size limit of yearly kWh divided by 1,800. Read September 30, 2026.
  17. S.C. Code Section 12-37-220(B)(53): property tax exemption20 kW AC or less, inverter and battery included. Read September 30, 2026.
  18. S.C. Code Section 12-4-720: exemption applicationsThe owner must apply. Read September 30, 2026.
  19. S.C. Code Title 12, Chapter 36: sales and use taxNo exemption names home solar. Read September 30, 2026.
  20. S.C. Code Section 58-27-2610: solar leasesOffice of Regulatory Staff certificate; no direct power sales. Read September 30, 2026.
  21. IRS: Residential Clean Energy CreditNo credit for property placed in service after December 31, 2025. Read September 30, 2026.
  22. U.S. EIA: average residential price by state15.64¢, 12 months August 2025 to July 2026, as used in the Cost Index.
  23. 2025 Annual Technology Baseline: residential PVOwner costs of $29.83 per kW a year, rounded to $30 for upkeep.
  24. Berkeley Lab: solar self-consumption research (2022)Informs the 40% home-use planning default. It is not a measured South Carolina average.
  25. South Carolina LLR: contractor license lookupPalmetto and Renu Energy Solutions licenses. Read October 13, 2026.
  26. OPB: Purelight Power lays off workers as it shuts downDecember 24, 2025. Read October 13, 2026.
Dean Mahmoud
Written by

Dean Mahmoud

CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.

About Dean
Trevor Guilday
Checked by

Trevor Guilday

Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.

About Trevor