Discover your exact solar savings potential in South Carolina. We factor in local utility rates, sun hours, and state-specific incentives to give you an accurate ROI estimate.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Find out how much you can save based on your location and current energy usage.
South Carolina Code Section 12-6-3587 provides a state income tax credit equal to 25% of the cost of purchasing and installing a solar energy system you own outright. The credit is capped at $3,500 per year per facility — or 50% of your state tax liability for that year, whichever is less — but any unused credit can be carried forward for up to 10 additional tax years. Because the credit can spread across multiple years and reaches a maximum of $3,500 annually, a homeowner with a $20,000 system could claim up to $3,500/year for multiple years until the full 25% value is exhausted. This is a genuine differentiator: very few states offer a 25% income tax credit with a multi-year carryforward on residential solar. Note this credit applies only to systems you own outright — leased systems and power purchase agreements (PPAs) do not qualify because the homeowner does not own the equipment.
South Carolina requires investor-owned utilities with more than 100,000 customers to offer net metering for residential solar systems up to 20 kW. Both Dominion Energy South Carolina (formerly SCE&G) and Duke Energy (serving the Upstate) participate. Both utilities provide full monthly 1:1 kWh credit carryover for excess energy you send to the grid during any given month. However, at the annual true-up, any remaining unused credits are redeemed at a much lower avoided-cost rate — approximately 2.8–3.4¢/kWh for Dominion and approximately 2.6–4¢/kWh for Duke — rather than the full retail rate. This is meaningfully less generous than full retail net metering in states that pay retail rates year-round on all exported energy. The practical implication: size your system to match your consumption as closely as possible, because large excess annual surpluses will be compensated at only a few cents per kWh. Dominion customers must also enroll in a time-of-use rate plan and pay a required minimum monthly charge of roughly $14/month. Confirm current terms with your specific utility before committing.
South Carolina exempts 'renewable energy resource property' from added property value for property tax purposes. For residential solar systems with an AC nameplate capacity up to 20 kW, the full added value of the solar installation is excluded from your home's assessed value — installing solar will not increase your property tax bill. Importantly, this exemption covers both systems you own outright AND systems installed under a lease or third-party ownership arrangement (the exemption was extended to leased systems by H.3354, enacted in 2021). This is a more inclusive exemption than many states offer, which restrict the property tax benefit to owned systems only.
Solar energy equipment purchases are exempt from South Carolina's 6% state sales tax. This exemption applies at the point of sale and eliminates a significant line-item cost on a typical residential solar installation. No separate application is required to claim the sales tax exemption on qualifying solar equipment.
South Carolina averages roughly 5.2 peak sun hours per day statewide, with coastal and central cities like Charleston and Columbia running higher — around 6 peak sun hours per day in favorable conditions. This is a genuinely strong solar resource, well above the national average of approximately 4 peak sun hours per day. More peak sun hours per day means more electricity generated per installed kilowatt of capacity, which improves the economics of any given system size.
South Carolina's average residential electricity rate is roughly 14 to 17¢/kWh depending on the source and billing period — below the national average and one of the more affordable states for electricity. Lower rates reduce the per-kWh savings from offsetting grid purchases compared with high-rate states. However, South Carolina's combination of a 25% state income tax credit with multi-year carryforward, strong sun resource, sales and property tax exemptions, and a 1:1 monthly net metering credit structure means the overall incentive stack is genuinely competitive despite the moderate electricity rate. Payback periods and lifetime savings still compare favorably to many states with higher rates but weaker state incentives.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act and does NOT apply to solar energy systems installed in 2026 or later. Any installer or website claiming a 30% federal credit is currently available for South Carolina homeowners is providing outdated information. South Carolina homeowners purchasing a system in 2026 should rely on the state's 25% income tax credit (Section 12-6-3587) as the primary tax incentive — it is substantial on its own.
Everything you need to know about solar incentives, costs, and savings in your area.