South Carolina homes pay about 16.18 cents per kWh, below the U.S. average, so rooftop solar offsets a real bill (EIA, May 2026). South Carolina’s own 25% state solar tax credit remains in place for 2026 (verify with the SCDOR), and legacy 1:1 net metering has moved to utility Solar Choice tariffs. The 30% federal residential credit ended December 31, 2025.
If you own a home in South Carolina, this page explains how rooftop solar pays off in 2026: the electricity rate solar offsets, the state’s own 25% tax credit, how the utilities credit the power you export under Solar Choice, and what the end of the federal homeowner credit means. South Carolina gets strong Southeast sun and has a real solar market, shaped by the 2019 Energy Freedom Act. Every figure below is tied to a primary source, and where a number depends on your utility or your tax situation, we say so.
Why solar pays in South Carolina
South Carolina residential power runs about 16.18 cents per kWh (EIA Electric Power Monthly, May 2026), below the national average, but a typical home still runs a bill worth offsetting, and the state’s sun is a real asset. Your production drives both your bill savings and the value of any exports, so start by estimating your roof’s output with NREL’s free PVWatts calculator; actual output depends on your roof’s pitch, orientation, and shading. For how those savings show up on your monthly statement, see how solar lowers your electricity bill.
According to MySolarFY’s analysis (August 2026), a typical 6 kW rooftop system in Columbia produces about 8,674 kWh a year (NREL PVWatts v8), which at South Carolina’s 16.18 cents per kWh (EIA, May 2026) offsets roughly $1,400 in grid power a year. Your own production and savings vary with roof and usage.
South Carolina solar incentives at a glance
South Carolina’s headline benefit is its own state tax credit, on top of what your utility pays for exports. Here is what each one does in 2026 and the catch worth knowing. Confirm every figure with the linked source before you decide, and ask a tax professional about your own situation. For a full walkthrough of every credit and how each one is claimed, see our guide to South Carolina solar incentives for 2026.
| Incentive | What it does | 2026 value and status | Source |
|---|---|---|---|
| SC Solar Energy System Credit | A state income-tax credit for buying and installing a qualifying system | 25% of eligible cost, capped at $3,500 per year or 50% of your SC tax liability, whichever is less, with a 10-year carryforward (verify with the SCDOR) | SCDOR (TC-38) |
| Net metering (Solar Choice) | A bill credit for the power you export to the grid | Utility-specific Solar Choice tariff, monthly netting; not a flat 1:1 retail credit (verify your utility’s current tariff) | SC ORS |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | IRS |
The headline is the state tax credit. South Carolina offers a Solar Energy System Credit worth 25% of the eligible cost of a qualifying system, authorized under state law and claimed on SCDOR form TC-38 (SCDOR). You can use up to $3,500 or 50% of your South Carolina income-tax liability in a year, whichever is less, and carry any unused credit forward for up to 10 years. Because it is nonrefundable and tied to your tax liability, the amount you can actually use depends on your own taxes, so treat any quoted figure as an estimate and verify current terms with the SCDOR. This is a state credit and is separate from the federal credit that ended after 2025. For the federal picture, see what the federal solar tax credit change means in 2026.
Heads up: incentive amounts, tax rules, and utility tariffs change. The state credit is nonrefundable and capped by your tax liability, and net-metering credits are set by each utility’s current Solar Choice tariff, not a statewide 1:1 rule. Confirm every figure with the linked source, and ask a licensed tax professional about your situation. MySolarFY does not provide tax advice.
South Carolina utilities and how they credit solar
South Carolina does not have one statewide net-metering rule. After the 2019 Energy Freedom Act (Act 62), the Public Service Commission moved new residential solar customers off legacy 1:1 net metering and onto utility-specific Solar Choice tariffs, which net your usage monthly but credit exports on time-varying rates rather than a flat retail rate (SC Office of Regulatory Staff; S.C. Code Title 58, Chapter 40). What your exports are worth depends on which utility serves you, so confirm the current tariff before you size a system. For the mechanics of export credits, read how net metering credits your solar exports. If Dominion Energy serves you, see our detailed guide to Dominion Energy South Carolina solar and Solar Choice net metering. For what solar looks like in specific South Carolina cities, see our guides to solar in Charleston and solar in Columbia, both largely on Dominion Energy, solar in Greenville in the Upstate on Duke Energy, and solar in Myrtle Beach on the Grand Strand in Santee Cooper territory.
| Utility | Type | Solar export program (verify current tariff) |
|---|---|---|
| Dominion Energy South Carolina | Investor-owned, PSC-regulated | Solar Choice net metering, paired with a time-of-use residential rate; monthly netting, exports valued below flat retail. Verify the current tariff. |
| Duke Energy (Carolinas and Progress) | Investor-owned, PSC-regulated | Solar Choice net metering with time-varying export credits set by its PSC-approved tariff. Verify the current tariff. |
| Santee Cooper | State-owned utility | Runs its own distributed-solar and net-metering program outside the PSC Solar Choice tariffs. Verify terms directly with Santee Cooper. |
How you pay changes which incentives you keep
The way you finance solar decides who owns the system, and ownership decides who claims the state tax credit. This is the most misunderstood part of a South Carolina solar quote. For what a system runs before incentives and how quickly it pays back, see South Carolina solar costs and payback. For the full data set behind these figures, see our South Carolina solar data and statistics.
| How you pay | Up-front cost | Who owns the system | Who claims the SC tax credit |
|---|---|---|---|
| Cash | Full system price | You | You, if you have SC tax liability |
| Solar loan | Little or none, financed over time | You | You, if you have SC tax liability |
| Lease or PPA | $0-up-front where you qualify | A third-party company | The company that owns the panels |
If you own the system (cash or loan), you can claim the state Solar Energy System Credit if you have South Carolina tax liability, and you keep the net-metering bill credits. If you lease or sign a PPA, the company that owns the panels claims any credit it qualifies for, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 South Carolina homeowner the federal residential credit, since that credit ended after December 31, 2025. For a deeper payback comparison, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for South Carolina
The federal homeowner credit is gone, but South Carolina’s own incentives are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a South Carolina homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS; SEIA). The state’s 25% tax credit and utility net-metering credits were not affected by that change. 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. For the full timeline, see the solar incentives that still apply in 2026.
How to choose a solar installer in South Carolina
Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper South Carolina contractor and electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real South Carolina experience, verifiable reviews, and help filing your state credit and net-metering paperwork.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. Learn how MySolarFY works and how we choose installers, or read our data sources and how we research each page.
Comparing states in the Southeast? See our guides to North Carolina solar incentives and Georgia solar incentives, or browse all of our solar incentives by state.
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Frequently asked questions
What solar incentives does South Carolina offer in 2026? The headline is the state Solar Energy System Credit, worth 25% of the eligible cost of a qualifying system, capped at $3,500 per year or 50% of your South Carolina tax liability, whichever is less, with a 10-year carryforward, claimed on SCDOR form TC-38 (SCDOR). On top of that, your utility credits the power you export under its Solar Choice net-metering tariff. Confirm current terms with the SCDOR and your utility.
What happened to the federal solar tax credit? The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made 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. South Carolina’s own 25% state credit and utility net-metering credits were not affected. A separate commercial credit (Section 48E) can apply to leased or PPA systems, but the business that owns the system claims it, not the homeowner.
How does net metering work in South Carolina? After the 2019 Energy Freedom Act, new residential customers are on utility-specific Solar Choice tariffs rather than legacy 1:1 net metering. Your usage is netted monthly, but exports are credited on time-varying rates set by your utility’s PSC-approved tariff, not a flat retail rate, so the value depends on which utility serves you. Confirm the current tariff with Dominion Energy South Carolina, Duke Energy, or Santee Cooper.
Is the South Carolina solar tax credit refundable? No. The state Solar Energy System Credit is nonrefundable, so it can only offset South Carolina income tax you actually owe, up to $3,500 or 50% of your liability in a year, whichever is less. Any unused amount carries forward for up to 10 years. Because the benefit depends on your own tax situation, treat any quoted figure as an estimate and confirm it with the SCDOR or a tax professional.
Do I get any solar incentives if I lease or sign a PPA? The state tax credit goes to whoever owns the system, so on a lease or PPA the third-party company claims any credit it qualifies for, not you. What you get instead is a lower or fixed power price with no up-front cost. Net-metering bill credits still reduce your usage charges either way. If claiming the state credit matters to you, owning the system through cash or a loan is the path that captures it.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL, SCDOR, SC Office of Regulatory Staff, S.C. Code, and IRS sources as of August 2026; incentive amounts, tax rules, and utility tariffs change, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about how MySolarFY works and how we choose installers.
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; on a lease or PPA the state tax credit goes to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed.
