Solar Incentives in South Carolina
South Carolina homeowners installing solar in 2026 have access to several active state-level incentives. The state offers a 25% income tax credit on the purchase and installation cost of a solar energy system, capped at $3,500 per facility per year or 50% of the taxpayer's tax liability, whichever is less, administered by the South Carolina Department of Revenue. Residential systems with a nameplate capacity at or below 20 kilowatts AC qualify for a 100% property tax exemption on the renewable energy equipment. For utility compensation of exported power, South Carolina's net metering landscape varies by utility and customer vintage: legacy customers who applied before June 1, 2021 may remain on the original net metering arrangement through May 31, 2029, while newer customers are subject to different terms set by their individual utility. Santee Cooper customers have two additional options: a rooftop solar rebate of $950 per kilowatt, capped at $5,700, for systems installed through a Trade Ally (with a $10.00/month Distributed Generation Rider charge applied afterward), and low-interest loans of up to $40,000 at a posted rate of 4.75% to help finance renewable energy purchases.
The federal picture has changed materially for 2026 installations. The residential Clean Energy Credit under Internal Revenue Code §25D — commonly called the 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners contracting for a new residential solar installation in 2026 should not expect that federal credit to be available, which meaningfully lengthens payback periods compared to prior years.
South Carolina's residential electricity rate averaged approximately 16.45 cents per kilowatt-hour as of March 2026, up about 1.18 cents year-on-year. Higher electricity rates generally improve the value of solar generation consumed on-site, but the loss of the federal credit shifts more of the financial burden to state incentives and utility programs, which vary considerably depending on a homeowner's utility territory.
Figures here are verified as of June 2026 against official state and utility sources; programs, rates, and eligibility rules change with each legislative session and utility rate case, and the South Carolina Department of Revenue, the Public Service Commission of South Carolina, and Santee Cooper's official program pages remain the authoritative sources for current requirements.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in South Carolina
Solar Energy, Small Hydropower, and Geothermal Tax Credit
South Carolina allows an income tax credit equal to 25% of the cost of purchasing and installing a solar energy system, small hydropower system, or geothermal machinery and equipment on a facility in the state owned by the taxpayer. The credit claimed in any one year may not exceed $3,500 per facility or 50% of the taxpayer's tax liability for that year, whichever is less, and excess credit may be carried forward up to ten years. Solar systems must be certified for performance by the Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office. The credit applies against the income tax imposed by Chapter 6 and is available to individual and corporate taxpayers.
| Amount | 25% of purchase and installation costs; annual cap of $3,500 per facility or 50% of tax liability (whichever is less); 10-year carryforward of excess. |
|---|---|
| Who qualifies | Taxpayers who own the facility in South Carolina where the system is installed; system must be SRCC-certified (or equivalent endorsed by the State Energy Office); credit is nonrefundable and claimable only after installation is complete. |
| Administered by | South Carolina Department of Revenue |
Source: S.C. Code Ann. § 12-6-3587 Official source →
Renewable Energy Resource Property Tax Exemption (systems up to 20 kW)
South Carolina exempts from property tax any renewable energy resource property with a nameplate capacity of, and operating at, no greater than 20 kilowatts AC. Renewable energy resource is defined by reference to S.C. Code 58-40-10 and the exemption explicitly includes components that enhance the generating equipment, such as advanced inverters and battery storage devices, plus equipment required to meet safety, performance, interconnection, and reliability standards. This covers typical residential rooftop solar systems.
| Amount | 100% property tax exemption for qualifying renewable energy resource property up to 20 kW AC. |
|---|---|
| Who qualifies | Renewable energy resource property (including residential solar with storage and inverters) with nameplate capacity no greater than 20 kW as measured in alternating current. |
| Administered by | County assessors / South Carolina Department of Revenue (statutory exemption) |
Source: S.C. Code Ann. § 12-37-220(B)(53) Official source →
Net Energy Metering / Solar Choice Metering
Under the Energy Freedom Act, South Carolina electrical utilities were required to make net energy metering available to customer-generators who applied before June 1, 2021 under the terms of Commission Order No. 2015-194, and those legacy customers (including subsequent owners of the premises) may remain on that net metering arrangement through May 31, 2029. The statute directed the Public Service Commission to establish successor solar choice metering requirements that allocate costs and benefits to minimize cost-shifting, with the value of customer-generated energy updated annually. Customers applying after June 1, 2021 take service under PSC-approved solar choice metering tariffs, and credit rates vary by utility.
| Amount | Varies by utility and vintage: legacy net metering per Commission Order No. 2015-194 through May 31, 2029; newer customers under utility-specific solar choice metering tariffs approved by the PSC. |
|---|---|
| Who qualifies | Customer-generators of South Carolina electrical utilities; terms depend on application date and the serving utility's commission-approved tariff. |
| Administered by | Public Service Commission of South Carolina |
Source: S.C. Code Ann. § 58-40-20 (Act 62 of 2019) Official source →
Santee Cooper EmpowerSolar Rooftop Solar Rebate (Solar Home Program)
Santee Cooper, South Carolina's state-owned electric utility, pays residential customers a rebate of $950 per kilowatt, up to $5,700, for rooftop solar photovoltaic systems installed by a Santee Cooper Trade Ally. After installation and final acceptance testing, Santee Cooper installs a bidirectional smart meter and releases the rebate within about 6-8 weeks. Participants are subject to the charges in Santee Cooper's Distributed Generation Rider, currently a $10.00 monthly charge for residential customers.
| Amount | $950/kW rebate, capped at $5,700; participants pay a $10.00/month residential Distributed Generation Rider charge. |
|---|---|
| Who qualifies | Santee Cooper residential customers; only systems installed by Santee Cooper Trade Allies are rebate-eligible; system must pass Santee Cooper acceptance testing and interconnection. |
| Administered by | Santee Cooper |
Source: program page and EmpowerSolar Home Program manual Official source →
Santee Cooper Renewable Energy Resource Loans
Santee Cooper offers approved customers loans of up to $40,000 to purchase renewable energy resources, including solar photovoltaic, wind, micro-hydro, and biomass generation. The posted loan rate on the utility's loan page is 4.75%, and renewable energy loan applications remain active for 120 days. The loan can be combined with the EmpowerSolar rooftop rebate, which does not depend on taking a loan.
| Amount | Up to $40,000; posted loan rate 4.75% (subject to change). |
|---|---|
| Who qualifies | Qualifying Santee Cooper customers approved through the loan application process; solar installations proceed through Santee Cooper Trade Allies and interconnection. |
| Administered by | Santee Cooper |
Source: program page Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.