Is solar worth it in South Carolina?

Yes, South Carolina is excellent for solar with one of the best state tax credits in the country—25% of system cost up to $35,000 cap. Combined with 5.0 peak sun hours, net metering, and property tax exemption, expect 6-9 year payback. SC is the best southeastern state for solar incentives.

How much does solar cost in South Carolina?

An 8 kW system costs $20,000-$24,800 before incentives in South Carolina. After the 25% state tax credit ($5,000-$6,200), net cost drops to $15,000-$18,600. Charleston area gets slightly higher production due to coastal sun.

What is the South Carolina solar tax credit?

South Carolina offers a 25% state tax credit on solar system cost with a $35,000 cap—one of the best in the nation. A $24,000 system qualifies for $6,000 credit. Unused credit carries forward to future tax years until fully used.

How does net metering work in South Carolina?

Duke Energy, Dominion Energy, and Santee Cooper offer net metering in South Carolina. Credit rates vary by utility (avoided cost or retail). Credits roll over monthly. Electric co-ops have varying policies—check with your specific provider.

Does South Carolina have a solar property tax exemption?

Many states offer solar property tax exemptions, meaning the added home value from solar panels won't increase your property taxes. Check your state's specific exemption details, as coverage varies from full to partial exemption.

How many solar installers operate in South Carolina?

The number of solar installers varies by market size. Larger states have dozens of options. Always get 3-5 quotes from different installers, comparing identical equipment, to find the best price and service quality in your area.

South Carolina Solar Guide: Tax Credits, Net Metering & Costs

Quick Answer

South Carolina has one of the best state solar tax credits in the country—25% of system cost up to $35,000 cap. An 8 kW system costs $20,000-$24,800 before the credit, dropping to $15,000-$18,600 after. Good sunshine (5.0 peak hours), Duke/Dominion net metering, and property tax exemption create 6-9 year payback—best in the Southeast.

South Carolina Solar Overview

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From my experience:

South Carolina has a secret weapon: a 25% state tax credit with a $35,000 cap. That is one of the best state credits in the country. When I look at southeastern states, SC stands out because the incentives are so much better than Georgia or Alabama. The sunshine is solid, Duke and Dominion both offer net metering, and that credit makes the payback math really work. If you are in the southeast, South Carolina is where I would want to go solar.

South Carolina is one of the best southeastern states for solar thanks to its generous 25% state tax credit. This credit, combined with good sunshine and utility net metering, makes solar highly attractive for Palmetto State homeowners.

[Editor's Note, Jan 2026]:South Carolina state tax credit has had legislative changes over the years. Verify current credit percentage, cap, and carryforward rules with your tax advisor or installer.

SC Solar Advantage

South Carolina's 25% state tax credit (up to $35,000) is one of the best in the nation. Combined with 5.0 peak sun hours daily and utility net metering, payback can run as low as 6-9 years. (Source: NREL Solar Resource Data)

Why South Carolina is Great for Solar

25% state tax credit: Up to $35,000 cap
Good sunshine: 5.0 peak sun hours average
Net metering: Available from major utilities
Property tax exemption: Solar excluded from property tax
Growing market: Competitive installer pricing

State Tax Credit

SC Solar Tax Credit Details

Credit amount: 25% of total system cost
Maximum cap: $35,000
Carryforward: Unused credit carries forward
Expiration: Check current program status

Tax Credit Example

A $24,000 solar system qualifies for a $6,000 SC state tax credit. If you can't use it all in one year, the credit carries forward to future years until fully used. (Source: IRS guidelines and DSIRE Database)

Net Metering

South Carolina Policy

Duke Energy: Net metering available
Dominion Energy: Net metering in SC territory
Santee Cooper: Net metering program
Electric co-ops: Policies vary

Credit Structure

Utility	Credit Rate	Rollover
Duke Energy	Avoided cost or retail	Monthly
Dominion Energy	Check current rate	Monthly
Santee Cooper	Net metering	Monthly

Solar Costs

System Size	Gross Cost	After SC Credit
6 kW	$15,000-18,600	$11,250-13,950
8 kW	$20,000-24,800	$15,000-18,600
10 kW	$25,000-31,000	$18,750-23,250

Major Utilities

Duke Energy Carolinas/Progress

Service area: Upstate, Midlands, coastal areas
Net metering: Available for residential
Programs: Check for current rebates

Dominion Energy South Carolina

Service area: Parts of Lowcountry, Midlands
Net metering: Available
Rates: Competitive in region

Production Estimates

Annual production: 1,400-1,550 kWh per kW installed
8 kW system: ~11,200-12,400 kWh/year
Best months: April-September
Charleston area: Slightly higher due to coastal sun

The Bottom Line

South Carolina is excellent for solar. The 25% state tax credit, combined with good sunshine and net metering, creates favorable economics. Expect 6-9 year payback with the state credit.

Questions About South Carolina Solar?

Our AI can help you understand the state tax credit and your utility's programs.

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Solar Costs

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North Carolina

Neighboring state

Georgia

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Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.

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