State solar guide
South Carolina has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage June 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
South Carolina's residential net metering policy changed effective January 1, 2026 under the South Carolina Energy Freedom Act (2019). The prior NEM 2.0 program expired December 31, 2025. Both Dominion Energy SC (formerly SCE&G) and Duke Energy SC now compensate exported solar generation at the avoided-cost rate, ranging from approximately 2.6 to 4 cents per kWh, well below the retail rate of 16.15 cents per kWh. Dominion Energy SC customers enrolled in NEM 2.0 before January 1, 2026 automatically transitioned to the Solar Choice successor program, with annual true-up each November and remaining credits paid at the low avoided-cost rate. Systems should be sized to maximize self-consumption rather than export to the grid.
Dominion Energy SC (formerly SCE&G): Solar Choice Metering program as of January 1, 2026; export credits at avoided-cost rate of approximately 2.6 to 4 cents per kWh; annual true-up each November. Duke Energy SC: ended 1-to-1 net metering in 2021; credits excess at approximately 2.6 to 4 cents per kWh; customers moved to time-of-use rate with possible demand charges. Santee Cooper (state-owned utility): verify current net metering or buyback terms directly with Santee Cooper. Rural electric cooperatives (including York Electric and Berkeley Electric): verify current policies directly with each cooperative.
Program: NM2_avoided_cost. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific South Carolina utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for South Carolina homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| South Carolina Solar Incentives State and local programs Incentive amounts and availability change frequently. Verify at dsireusa.org before relying on any program. | See description No statewide utility rebate program for residential solar in South Carolina as of June 2026. Dominion Energy SC and Duke Energy SC do not offer broad residential cash rebates. Some rural electric cooperatives may offer limited programs; verify with your local cooperative. | South Carolina homeowners. Verify current programs at dsireusa.org. | Limited | DSIRE (opens in new tab) |
| South Carolina Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) South Carolina provides a statewide property tax exemption for residential solar systems rated up to 20 kW-AC. Enacted 2025. Applies to both owner-occupied and leased or third-party owned systems. This statewide exemption replaced prior locality-by-locality uncertainty. | South Carolina residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real South Carolina market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
An 8 kW system at the EnergySage June 2026 South Carolina average of $2.60 per watt costs approximately $20,800. The federal residential credit is zero (Section 25D expired December 31, 2025). The South Carolina 25% state income tax credit equals approximately $5,200 on this system, capped at $3,500 per year, absorbed over approximately 2 years for households with sufficient tax liability. Estimated net cost after the state credit: approximately $15,600. South Carolina's Solar Choice export rate of 2.6 to 4 cents per kWh means systems should be sized to maximize self-consumption. At 5.33 peak sun hours per day and 16.15 cents per kWh, estimated annual electricity bill savings are $1,700 to $2,100, producing an illustrative payback of 7 to 9 years when the state credit is fully absorbed. Credit absorption depends on individual tax liability; households with lower state tax liability will carry the credit over more years, lengthening effective payback. Figures are illustrative. Your in-home assessment will use your actual utility bill, rate schedule, and tax situation.
South Carolina homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Permit requirements in South Carolina vary by municipality. Verify permit timelines and fees with your installer and local Authority Having Jurisdiction (AHJ).
Commercial solar in South Carolina
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many South Carolina business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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