South Carolina Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
South Carolina remains an attractive state for residential solar, primarily driven by strong state incentives like the 25% tax credit. However, the shift away from retail net metering means homeowners must carefully navigate new utility tariffs and consider battery storage to maximize their return on investment.
$186
Avg. monthly bill
15.55¢/kWh
Avg. rate
Up to $3,500
State tax credit
25% of system cost
19 yrs
Est. payback
solar only, typical home
Cost of solar in South Carolina
While state-specific median pricing data is limited, a typical residential solar installation in South Carolina averages around ~$3.30 per watt before any incentives are applied. With South Carolinians consuming a relatively high average of 14,344 kWh/year, a home fully offsetting its usage would need roughly a 9.76 kW system.
That brings the estimated gross cost to about $32,221 (9.76 kW × ~$3.30/W). South Carolina makes going solar significantly more affordable through its generous 25% state income tax credit (capped at $3,500). After factoring in this state tax credit, the net cost drops to $28,721, even before applying the federal clean energy credit.
Solar only, no battery
~40% self-consumption — standard usage without storage
$1,249 / yr
19-year payback · $42,591 over 25 years
Solar + battery
~65% self-consumption — battery captures exports for evening use
$1,658 / yr
15-year payback · $56,528 over 25 years
Battery hardware cost isn't included in either estimate above — see our best solar battery guide for real installed battery prices to add to the solar+battery scenario.
Incentives & rebates
| Program | Amount | Status |
|---|---|---|
| Solar Energy Income Tax Credit | 25% of the costs for a qualifying solar energy system, up to a maximum of $3,500 per year. Excess credits can be carried forward for up to 10 years. | open |
| Renewable Energy Property Tax Exemption | 100% property tax exemption for the added value of a qualifying solar and battery system. | open |
| Santee Cooper Solar Rebate | $950 per kW of installed solar capacity, up to a maximum of $5,700. | open |
Net metering / export rules
South Carolina has modernized its solar export policies, meaning new installations no longer receive 1:1 retail net metering. Duke Energy and Dominion Energy customers are placed on Time-of-Use (TOU) tariffs where the credit for excess power sent to the grid fluctuates based on the time of day. Santee Cooper handles exports by crediting them at a fixed avoided-cost rate while imposing a monthly solar customer charge.
| Policy | Net Billing / Solar Choice |
| Duke & Dominion | Time-of-Use (TOU) monthly netting |
| Santee Cooper | Flat avoided-cost rate (~4.15¢/kWh) + monthly solar fee |
| Grandfathering | Pre-2022 installations generally keep legacy net metering until 2029 |
Export compensation varies significantly by utility. Duke Energy and Dominion Energy use TOU netting, meaning the value of exported energy depends on the time of day it is sent to the grid. Santee Cooper credits all exports at a flat avoided-cost rate (approximately $0.0415/kWh) rather than retail.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Dominion Energy South Carolina, Inc | 14.59¢/kWh | 696,385 |
| Duke Energy Carolinas, LLC | 13.99¢/kWh | 568,586 |
| South Carolina Public Service Authority | 11.38¢/kWh | 185,529 |
Batteries & VPP programs
Duke Energy Battery Control Program
Duke Energy's demand response programs allow the utility to manage participating residential battery systems during periods of high demand. In exchange for allowing the utility to dispatch energy from the battery, customers receive monthly bill credits. The program is known as Power Manager in the Duke Energy Carolinas territory and EnergyWise Home in the Duke Energy Progress territory.
Lease vs. buy in South Carolina
Owning your solar system directly is generally the best way to maximize returns, especially since it allows you to directly claim the 25% state tax credit. However, if you opt for a lease or PPA, the company installing the panels owns them and claims the federal and state benefits, which they may pass on as a lower monthly rate. Read our lease vs. buy vs. PPA guideto see which model makes the most sense for your home.
Estimate your own numbers
The figures above represent an average South Carolina home. Use thesolar calculatorto input your actual energy usage and explore potential savings.
FAQ
Does South Carolina still have net metering?
South Carolina has moved away from full retail net metering for new solar customers. Investor-owned utilities like Duke Energy and Dominion Energy now use "Solar Choice" tariffs, which place you on Time-of-Use (TOU) rates where the value of your solar exports depends on the time of day. Santee Cooper credits exports at a lower, flat avoided-cost rate (about 4.15¢/kWh).
What is the South Carolina solar tax credit?
The state offers a 25% income tax credit for qualifying solar energy systems, capped at $3,500 per year. If your credit exceeds 50% of your tax liability for the year, you can carry the excess forward for up to 10 years, making it one of the most generous state-level solar tax credits in the region.
Are there any solar rebates in South Carolina?
Yes, if you are a Santee Cooper customer. They offer a rebate of $950 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,700. You must use an approved Trade Ally contractor to qualify.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil