Rebates and incentives, South Carolina
A 25% state tax credit spread over up to 10 years, a property tax exemption for systems up to 20 kW, and Solar Choice net metering, which pays a lot less for exports than the older full retail program most guides still describe. See your numbers.
How it works
Step 1
The full retail grandfathering period for pre-2019 applicants ended December 31, 2025, so nearly all new 2026 installations are on the Solar Choice net-billing tariff, with a much lower export rate. Ask your installer for your specific rate in writing.
Step 2
Because the 25% credit is capped at $3,500 per year, a typical residential system's full credit takes two or more tax years to claim in full. Check the rebate plus ITC combined calculator to see how this stacks with your specific tax situation.
Step 3
This rebate runs first-come with a waitlist and a lifetime 6 kW-AC cap per meter, so confirm current availability with a Trade Ally contractor before counting on the full amount in your budget. Check your federal ITC status too, since that changed for 2026 and affects your overall math.
Under South Carolina's 2019 Energy Freedom Act, commonly called Act 62, customers who applied for net metering before May 16, 2019 were grandfathered at the full retail electric rate through December 31, 2025, a protection period that has now run its course. Customers connecting today, at both Dominion Energy South Carolina and Duke Energy's South Carolina territories, are placed on Solar Choice, a net-billing tariff that credits self-consumed solar at the retail rate but pays a meaningfully lower rate, commonly cited around 2.6 to 4 cents per kWh, for any excess generation exported to the grid, against a typical South Carolina retail rate near 15 to 16 cents per kWh. Santee Cooper and the state's electric cooperatives run their own separate net metering structures with generally similarly modest export rates rather than following the investor-owned utility tariffs. Some guides still describe full retail 1:1 net metering as the current statewide standard, which reflects the older, now-closed grandfathering window rather than what a new 2026 customer actually receives, so confirm your specific rate and program with your installer rather than assuming the older structure applies to you.
South Carolina's Solar Energy Tax Credit equals 25% of your total system cost, but it's capped at $3,500 per year or 50% of your state tax liability for that year, whichever is less, with a 10-year carryforward and a $35,000 lifetime cap. On a typical residential system in the $20,000 to $25,000 range, the full 25% credit often exceeds what a single year's cap allows, meaning most homeowners claim the credit across two or more tax years rather than all at once. This is still a genuinely strong incentive relative to many states, but it's worth planning your tax filing around the multi-year structure rather than expecting the full amount in year one. The DSIRE database of state incentives lists the incentives that apply in your state, with links to each program's rules.
Starting in 2025, South Carolina implemented a statewide property tax exemption for residential solar systems up to 20 kW, a threshold that covers the large majority of home installations. This means the value your system adds to your home is excluded from your property tax assessment. Because this is a comparatively new provision, if your county assessor's office hasn't reflected it automatically, follow up directly to confirm it's applied. Use the property tax exemption savings calculator to estimate the ongoing value for your specific home.
Santee Cooper offers an upfront cash rebate around $950 per kW installed, capped at $5,700, for systems installed by a Trade Ally contractor using a NABCEP-certified crew, subject to a 6 kW-AC lifetime cap per meter. Funding runs first-come with a waitlist once a program year's allocation is exhausted, so confirm current availability before you finalize a contract expecting this rebate. Dominion Energy and Duke Energy customers do not have a comparable utility rebate as of 2026, which means the state tax credit and the two tax exemptions carry more relative weight in their overall incentive picture. Compare your total package against a neighboring state with the Georgia incentive estimator or the North Carolina incentive estimator, since Duke Energy operates in both states with broadly similar Solar Choice-style structures.
Your rebate total changes what a loan costs each month, and the combined loan and rebate timing tool shows that payment once you enter both figures.
Questions
Not for new customers. Under South Carolina's 2019 Energy Freedom Act, customers who applied for net metering before May 16, 2019 were grandfathered at the full retail rate through December 31, 2025, a period that has now ended. Customers connecting today are placed on Solar Choice, a net-billing tariff at Dominion Energy and Duke Energy that credits self-consumed solar at the retail rate but pays a much lower avoided-cost rate for excess exported generation, commonly cited around 2.6 to 4 cents per kWh, well below a typical South Carolina retail rate near 15 to 16 cents per kWh. Santee Cooper and electric cooperatives run their own separate, generally similarly modest export rates.
South Carolina's Solar Energy Tax Credit equals 25% of your total system cost, but it's capped at $3,500 per year or 50% of your state tax liability for that year, whichever is less. If your credit exceeds what you can use in one year, you carry the remainder forward for up to 10 years, with a total lifetime cap of $35,000. On a typical residential system, this credit is usually claimed across two or more tax years rather than all at once, because of the annual cap.
If your system is 20 kW or smaller, which covers essentially all residential installations, yes. South Carolina implemented a statewide property tax exemption for residential solar systems starting in 2025, meaning the value your system adds to your home is excluded from your property tax assessment. This is a relatively new benefit, so if your county assessor's office isn't yet applying it automatically, follow up directly to make sure it's reflected in your assessment.
Only if Santee Cooper is your utility. Santee Cooper offers a cash rebate around $950 per kW installed, capped at $5,700, for systems installed by a Trade Ally contractor with a NABCEP-certified crew, subject to a 6 kW-AC lifetime cap per meter and first-come funding that can run out within a program year. Dominion Energy and Duke Energy customers do not have a comparable utility rebate available as of 2026, so if you're in their territory, the 25% state tax credit and the two tax exemptions are the reliable savings to plan around.