South Carolina’s headline incentive is a 25% state income-tax credit on a qualifying solar system, capped at the lesser of $3,500 a year or 50% of your tax liability, with a 10-year carryforward (SC Code 12-6-3587). Add utility net metering. The 30% federal homeowner credit ended after December 31, 2025.
South Carolina is one of the few states left that still gives homeowners a real state income-tax credit for going solar, and that credit is the reason solar can pencil out here even after the federal one ended. This page covers what South Carolina solar incentives look like in 2026: the 25% state tax credit and its fine print, how net metering works at Duke, Dominion, and Santee Cooper, the federal change that took effect after 2025, and how to tell whether solar is worth it for your roof. Every number below is tied to a primary source you can check yourself.
Why South Carolina solar incentives stand out in 2026
South Carolina stands out because it still gives homeowners a 25% state income-tax credit for solar, which most states do not. That credit is the centerpiece of the 2026 stack. Under South Carolina Code Section 12-6-3587, a homeowner who buys and installs a qualifying solar energy system can claim a credit worth 25% of the cost against their state income tax (South Carolina Department of Revenue, SC Revenue Ruling #24-2). Unlike the federal homeowner credit that ended after 2025, the state credit has no repeal date in the statute, so it remains available for qualifying 2026 installations. It is the single biggest reason a South Carolina solar quote can still make sense this year.
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What solar costs in South Carolina, and what your roof makes
Solar pays in South Carolina because of the power it replaces and the sun that drives it. The average South Carolina residential electricity price is about 16.18 cents per kWh (EIA retail sales, residential South Carolina, as of May 2026). South Carolina summers run heavy air-conditioning loads, so the typical bill is high in absolute dollars, and every kilowatt-hour your roof makes offsets one you would otherwise buy.
South Carolina sun turns that rate into strong production. According to MySolarFY’s own analysis (as of August 2026), a 6 kW rooftop system in Columbia is modeled to produce about 8,674 kWh a year (NREL PVWatts v8 run, NSRDB typical-year data). At the state average price, that output offsets roughly $1,400 of grid power a year, before any incentive. Actual production depends on your roof’s pitch, orientation, and shading, so estimate your own roof with NREL’s free PVWatts calculator before you size a system. For more South Carolina numbers, see our South Carolina solar data and statistics.
What the math looks like on a typical roof (our estimate)
Here is a simple, transparent estimate you can sanity-check against real quotes. It is an illustration built from the inputs below, not a quote or a guarantee, and your own numbers will differ with your roof, usage, utility, and installer.
| Input (assumption) | Value used | Source |
|---|---|---|
| System size | 6 kW rooftop | Typical residential size |
| Modeled annual production | ~8,674 kWh/yr (Columbia) | NREL PVWatts v8 |
| Residential electricity price | 16.18 cents/kWh | EIA, May 2026 |
| Grid power offset (before incentives) | ~$1,400/yr | MySolarFY analysis (rate x production) |
| State income-tax credit | 25% of cost, up to $3,500 total | SC Code 12-6-3587 |
What that adds up to. On these assumptions a 6 kW system offsets roughly $1,400 of grid power in year one, and the 25% South Carolina credit can return up to $3,500 to you through your state taxes over as long as 10 years, subject to the annual cap. The exact payback depends on your installed price, your utility’s net-metering tariff, and how you finance the system, so treat this as a starting point and compare it against real local quotes. The 30% federal homeowner credit is not part of a 2026 cash or loan purchase because it ended after December 31, 2025.
South Carolina solar incentives at a glance
Here is what each piece of the 2026 stack does, its current status, and the primary source to check. Confirm every figure against the linked source and ask a tax professional about your own situation before you sign anything.
| Incentive | What it does | 2026 status | Source |
|---|---|---|---|
| State solar income-tax credit (SC Code 12-6-3587) | Credits 25% of the cost of a qualifying solar system against your South Carolina income tax | Active; capped at the lesser of $3,500 per year or 50% of tax liability, nonrefundable, 10-year carryforward. The statute sets no repeal date for the solar credit. | SC DOR |
| Net metering / Solar Choice | Credits the solar energy you export to the grid | Available under the Energy Freedom Act (Act 62 of 2019); terms are set by each utility’s PSC-approved tariff and often require a time-of-use rate, so verify the current plan. | DSIRE SC |
| Statewide cash rebate | An upfront state rebate on the system price | None; South Carolina has no statewide solar rebate, and the major utilities do not currently offer a residential solar rebate. | DSIRE SC |
| Federal residential credit (Section 25D) | A 30% homeowner tax credit | Ended; not available for property placed in service after December 31, 2025. | IRS |
The 25% South Carolina solar tax credit, in detail
This is the one incentive that puts real money back in a South Carolina homeowner’s pocket, so it is worth understanding the mechanics. Under SC Code 12-6-3587, the credit equals 25% of the costs you incur to purchase and install a qualifying solar energy system on a facility you own in South Carolina (SC Department of Revenue, Revenue Ruling #24-2). The Department’s own example: if a system costs $15,000 and the utility gives a one-time $1,000 rebate, the credit is 25% of the remaining $14,000, or $3,500.
Three limits shape how fast you actually collect it. First, the credit you can take in any one year is capped at the lesser of $3,500 per facility or 50% of your South Carolina tax liability. Second, it is nonrefundable, so it reduces your state tax but cannot drop it below zero or pay you cash. Third, any unused amount carries forward for up to 10 years, and each carryforward year is still held to the same annual cap (SC DOR). So a larger system’s credit is often spread across several tax years rather than claimed all at once. You claim it on South Carolina Schedule TC-38, and a tax professional can confirm how the cap and carryforward apply to your return. MySolarFY does not provide tax advice.
One clarification worth making: the state credit for solar energy systems has no repeal date in the statute. A separate line in the same law, covering geothermal machinery, is scheduled to be repealed on January 1, 2032, but that does not touch the rooftop-solar credit (SC Revenue Ruling #24-2). Because tax rules can change, confirm the credit is current with the Department of Revenue before you rely on it.
Net metering in South Carolina: check the tariff, not just the panels
Yes, South Carolina has net metering. But the credit rate comes from your utility’s tariff, not one statewide rule. The Energy Freedom Act (Act 62 of 2019) directed the South Carolina Public Service Commission to set successor net-metering programs, often called Solar Choice, for the state’s investor-owned utilities (DSIRE South Carolina). Under these programs a homeowner typically enrolls in a time-of-use rate, and the value of your exported solar is credited within each rate period rather than as a flat one-for-one swap. Excess credits and how they roll over or cash out vary by plan, so the buyback value depends on the tariff you sign up for.
The three big providers each run their own version. Duke Energy Carolinas and Duke Energy Progress, and Dominion Energy South Carolina, offer PSC-approved Solar Choice net-metering tariffs; Santee Cooper, the state-owned utility, and the electric cooperatives set their own terms. Because the credit rate, the required rate plan, and any monthly fees change over time, read the current tariff and confirm the numbers with your utility before you size a system. A licensed local installer who files interconnection paperwork every day will know the current terms in your service area. For the mechanics of how export credits work in general, see how net metering credits your solar exports.
| Utility | Type | Rough service area | Net-metering approach (2026) |
|---|---|---|---|
| Dominion Energy South Carolina | Investor-owned | Midlands and Lowcountry, including Columbia and Charleston | PSC-approved Solar Choice net metering on a time-of-use rate; verify current terms |
| Duke Energy Carolinas / Duke Energy Progress | Investor-owned | Upstate and Pee Dee regions | PSC-approved Solar Choice net metering on a time-of-use rate; verify current terms |
| Santee Cooper | State-owned | Horry, Georgetown, Berkeley counties and wholesale to co-ops | Sets its own net-metering program; verify current terms |
What South Carolina does not offer, and the federal change
South Carolina has no statewide solar rebate and no residential SREC market, so the real value is the state credit plus net metering. Knowing what is not on the table helps you spot an inflated quote. South Carolina has no statewide cash rebate on solar, and the major utilities do not currently run a residential solar rebate, so anyone promising a state rebate check is not describing a real program (DSIRE South Carolina). South Carolina also does not run a residential SREC income market like Maryland or New Jersey. The real value here is the 25% state credit plus utility net metering, not a pile of stacking rebates.
The federal picture changed at the start of 2026. The 30% federal Residential Clean Energy Credit (Section 25D) is not available for property placed in service after December 31, 2025 (IRS, as of January 2026), so a South Carolina homeowner who buys solar with cash or a loan in 2026 cannot claim it. That makes the state’s 25% credit more important than ever, since it does not depend on the federal one. Solar panels are never free, and no legitimate program pays for a system in full; be cautious with any pitch built around a “free solar” or a still-active federal homeowner credit.
Cash, loan, lease, or PPA: who keeps which benefit
How you pay decides which benefits you keep. If you buy the system with cash or a loan, you own it, and you are the one who can claim the 25% South Carolina state credit and take the net-metering credit directly. The 30% federal homeowner credit (Section 25D) ended after December 31, 2025, so it is not part of a 2026 cash or loan purchase. If you lease or sign a power-purchase agreement, a third party owns the panels, you typically pay little or nothing up front, and the company that owns the system claims any commercial credit (Section 48E) and generally the state credit, not you. On any path, confirm in writing who claims which incentive before you sign. MySolarFY matches you with licensed South Carolina installers so you can compare real local quotes side by side, with no obligation. For how programs stack across states, see our solar incentives overview, and for the full state picture start at our South Carolina solar hub.
Frequently asked questions
What solar incentives does South Carolina offer in 2026? South Carolina offers a 25% state income-tax credit on a qualifying solar system under SC Code 12-6-3587, capped at the lesser of $3,500 per year or 50% of your tax liability, nonrefundable, with a 10-year carryforward. It also offers utility net metering under the Energy Freedom Act (Act 62 of 2019), with terms set by each utility’s PSC-approved tariff. There is no statewide cash rebate, and the 30% federal homeowner credit ended for property placed in service after December 31, 2025. Confirm current terms with each source before you sign.
Does South Carolina have a state solar tax credit in 2026? Yes. Under SC Code 12-6-3587, homeowners can claim a credit worth 25% of the cost of a qualifying solar system against their South Carolina income tax. The statute sets no repeal date for the solar credit, so it remains available for qualifying 2026 installations. It is capped at the lesser of $3,500 a year or 50% of your tax liability, is nonrefundable, and carries forward up to 10 years. Verify current terms with the South Carolina Department of Revenue.
How much is the South Carolina solar tax credit? The credit equals 25% of the cost you incur to purchase and install a qualifying solar system, reduced by any utility rebate. The most you can claim in one year is the lesser of $3,500 per facility or 50% of your state tax liability, and any unused amount carries forward for up to 10 years, still subject to the annual cap. You claim it on South Carolina Schedule TC-38.
Does South Carolina have net metering? Yes. Under the Energy Freedom Act (Act 62 of 2019), the South Carolina Public Service Commission set Solar Choice net-metering programs for the state’s investor-owned utilities, Duke Energy and Dominion Energy South Carolina. These typically credit your exported solar within a time-of-use rate rather than at a flat one-for-one rate, and Santee Cooper and the co-ops set their own terms. Because the tariff and rate plan change, confirm the current terms with your utility before you size a system.
What happened to the federal solar tax credit in South Carolina? The 30% federal Residential Clean Energy Credit (Section 25D) is not available for property placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a South Carolina homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. South Carolina’s own 25% state credit was not affected.
Does South Carolina offer a solar rebate? No. South Carolina has no statewide solar rebate, and the major utilities do not currently offer a residential solar rebate. The state’s value comes from the 25% income-tax credit and utility net metering, not an upfront rebate check. Treat any offer of a state solar rebate with caution and verify it against DSIRE and your utility.
By the SolarFY Editor, reviewed by the MySolarFY team (August 2026). Figures were verified against the linked EIA, NREL, IRS, South Carolina Department of Revenue (SC Code 12-6-3587 and Revenue Ruling #24-2), and DSIRE sources as of August 2026; South Carolina utility tariffs and Department of Revenue guidance change, so confirm current net-metering and credit terms with your utility and the Department of Revenue before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. See how we source our numbers in our data and methodology, and browse more states from our solar by state hub.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025; on a leased system the company that owns it claims any commercial credit. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
