South Carolina Solar Incentives and Net Metering: What Homeowners Should Know

South Carolina has emerged as one of the most attractive states in the Southeast for residential solar installation, thanks to a combination of state tax credits, federal incentives, and favorable net metering policies. Here's what you need to know.

South Carolina Solar Tax Credit

South Carolina offers a 25% state income tax credit for solar energy systems. Key details:

Covers 25% of the total cost of the solar system (equipment + installation)
Can be carried forward for up to 10 years if the credit exceeds your tax liability
Stacks with the 30% federal Investment Tax Credit (ITC)
No cap on system size for residential installations

Example Savings

For a typical 8 kW residential system costing $24,000:

| Incentive | Amount | Remaining Cost |

|-----------|--------|---------------|

| System cost | $24,000 | $24,000 |

| Federal ITC (30%) | -$7,200 | $16,800 |

| SC State Credit (25%) | -$6,000 | $10,800 |

| Net cost after credits | | $10,800 |

That's a 55% reduction in the cost of going solar.

Net Metering in South Carolina

Net metering allows solar homeowners to receive credit for excess electricity sent back to the grid. South Carolina's net metering policies vary by utility:

Dominion Energy SC

Full retail rate net metering for systems up to 20 kW
Monthly credits roll over; annual true-up in April
Excess credits at end of year paid at avoided cost rate

Duke Energy Carolinas (SC)

Net metering available for systems up to 20 kW
Credits at full retail rate
Monthly rollover with annual settlement

Santee Cooper

Net metering for systems up to 20 kW
Credits at retail rate
Also offers a Solar Share community solar program

Electric Cooperatives

Policies vary by cooperative
Most offer some form of net metering
Check with your specific cooperative for details

South Carolina Solar Production

South Carolina averages approximately 4.5–5.0 peak sun hours per day, making it well-suited for solar. A typical 8 kW system can produce:

10,000–12,000 kWh per year
Offsetting approximately 80–100% of an average household's electricity consumption
Generating approximately $1,400–$1,700 in annual electricity savings at current rates

Utility Solar Programs

Dominion Energy SC Solar Programs

Distributed Energy Resource (DER) interconnection process
Community solar options in development
Time-of-Use rates that can maximize solar value

Duke Energy SC Solar Programs

Net metering with straightforward interconnection
Shared Solar community program
Solar rebate programs (when available)

Things to Consider Before Going Solar in SC

Roof condition — ensure your roof has 15+ years of life remaining
Tree shading — South Carolina's lush vegetation can reduce solar production
HOA restrictions — SC law limits HOA ability to prohibit solar, but check your covenants
Hurricane preparedness — ensure your installer uses wind-rated mounting systems
Insurance — notify your homeowner's insurance about the solar installation

The Impact on Your Electricity Bill

After installing solar with net metering, your electricity bill will typically show:

Reduced or zero energy charges during sunny months
Small credits that carry forward to winter months
Basic service charge still applies (you remain connected to the grid)
Net annual savings of $1,200–$1,800 depending on system size and usage

Compare South Carolina Rates

Understanding your current rates helps you calculate solar payback:

View all South Carolina electricity rates →

South Carolina Solar Incentives and Net Metering: What Homeowners Should Know