South CarolinaSolar Incentives 2026: Tax Credits, Rebates & Net Metering
South Carolina homeowners can reduce solar installation costs by up to 55% through state and federal incentives. With average monthly bills of $170 and 5 peak sun hours per day, the average SC homeowner saves $40,200 over 25 years.
State Solar Tax Credit
South Carolina offers a 25% state income tax credit on residential solar installations, capped at $3,500. The credit applies to panels, inverters, mounting hardware, and labor. It is non-refundable but can typically be carried forward to subsequent tax years if your liability in the install year is too low to absorb the full credit.
The South Carolina state credit stacks with the federal 30% Residential Clean Energy Credit. On a typical $24,000 installation, that combination returns roughly $10,700 in combined credits.
Net Metering in South Carolina
South Carolina requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is the full retail electricity rate.
In practice, this means a properly sized South Carolina system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under SC net metering rules include Duke Energy SC, Dominion Energy SC, Santee Cooper.
South Carolina credits exported solar at roughly ~100% of retail of the retail rate. See full South Carolinanet metering rates & rollover rules →
Cost of Solar Panels in South Carolina (2026)
Solar installs in South Carolina average $2.85 per watt in 2026. A typical 8 kW system runs about $22,800 before incentives. After the 30% federal credit and the South Carolina state credit, the net cost drops to roughly $12,460 — the real number most SC homeowners pay.
Your price moves with system size, roof complexity, and equipment tier. Run the South Carolina savings calculator for a number matched to your actual electricity bill.
Are Free Solar Panels Real in South Carolina?
No — there is no government program handing out free solar in South Carolina. “Free solar” and “no-cost solar program” ads are leases or power purchase agreements (PPAs): a company owns the panels, claims the 30% federal credit and the 25% state credit for itself, and bills you for the power.
Buying your system — with the incentives in your name — almost always wins on lifetime savings. Read the full breakdown of “free solar” offers →
Utility Rebate Programs
3 major utilities operate in South Carolina: Duke Energy SC, Dominion Energy SC, Santee Cooper. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most South Carolina installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
South Carolina does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.
South Carolina does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
How South Carolina Compares to Neighboring States
Compare South Carolina's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.
How SC Incentives Work in Detail
Frequently Asked Questions
See your exact South Carolina solar savings
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