South Carolina Solar in 2026: The Honest Picture

South Carolina homeowners face a changed solar landscape in 2026. The federal Residential Clean Energy Credit (Section 25D), which once offered a 30% tax deduction on solar installation costs, expired on December 31, 2025. This is a significant shift, but it does not mean solar is no longer worthwhile in South Carolina. The state offers meaningful incentives, electricity rates are moderate to high, and solar irradiance is solid across the state.

The reality: South Carolina homeowners can still save $25,000 to $40,000 over 25 years with solar, even without the federal tax credit. The headline state-level incentive is the South Carolina Solar Energy Tax Credit (25% of system cost, capped at $3,500 per tax year and $35,000 lifetime, with a 10-year carry-forward), and property tax exemptions, sales tax exemptions, and some utility rebates remain in place alongside it. For those interested in federal benefits, a third-party-owned solar lease (Section 48E) is available, though it requires the installation company to retain ownership of the system and to have begun construction before July 4, 2026.

This guide covers costs, savings, available incentives, and how to find a qualified installer in South Carolina.

Average Solar System Cost in South Carolina (2026)

A typical residential solar system in South Carolina ranges from 6 kW to 8 kW and costs between $24,000 and $29,000 before incentives. This translates to roughly $3.50 to $4.00 per watt after accounting for labor, equipment, and permitting.

Cost breakdown for a 7 kW system (typical for a 3-4 bedroom home):

  • Equipment (panels, inverter, racking): $12,000-$14,000
  • Labor and installation: $8,000-$10,000
  • Permitting, inspection, and interconnection: $2,000-$3,000
  • Total before incentives: $22,000-$27,000

South Carolina’s stacked incentives meaningfully reduce this cost. The state solar tax credit (25% of system cost, capped at $3,500 per year and $35,000 lifetime) is the headline item: on a $26,500 system, the credit totals $6,625, claimed over two tax years given the $3,500 annual cap. Combined with the sales tax exemption (roughly $1,850 on a typical system) and any utility rebate (Santee Cooper up to $1.25/watt; Duke Energy Carolinas rebate availability varies by program year), net cost typically lands in the $15,000 to $20,000 range over the first one to two tax years.

For current pricing in your area, consult the EnergySage solar cost benchmarks for South Carolina.

Real South Carolina Homeowner Savings (Sample Scenarios)

Savings depend on your location, electricity rates, system size, and available incentives. Here are realistic examples:

Charleston (Duke Energy Carolinas, 4.2 kWh/m2/day irradiance)

  • 7 kW system cost: $25,500 before incentives
  • SC state solar tax credit (25%, $3,500/yr cap, over 2 tax years): -$6,375
  • Sales tax exemption: -$1,800
  • Net cost: $17,325
  • Annual electricity production: 8,400 kWh
  • Annual savings: $1,260 (at $0.15/kWh average rate, with Duke Energy 1:1 net metering)
  • 25-year lifetime savings: $31,500
  • Payback period: 13.5 years

Columbia (Dominion Energy South Carolina, 4.1 kWh/m2/day irradiance)

  • 7 kW system cost: $26,000 before incentives
  • SC state solar tax credit (25%, $3,500/yr cap, over 2 tax years): -$6,500
  • Sales tax exemption: -$1,800
  • Net cost: $17,700
  • Annual electricity production: 8,200 kWh
  • Annual savings: $1,148 (at $0.14/kWh average rate, blended with avoided-cost export credit on excess generation)
  • 25-year lifetime savings: $28,700
  • Payback period: 15.5 years

Greenville (Duke Energy Carolinas, 4.0 kWh/m2/day irradiance)

  • 6 kW system cost: $23,000 before incentives
  • SC state solar tax credit (25%, $3,500/yr cap, over 2 tax years): -$5,750
  • Sales tax exemption: -$1,600
  • Net cost: $15,650
  • Annual electricity production: 7,200 kWh
  • Annual savings: $1,080 (at $0.15/kWh average rate, with Duke Energy 1:1 net metering)
  • 25-year lifetime savings: $27,000
  • Payback period: 14.5 years

Myrtle Beach (Santee Cooper, 4.3 kWh/m2/day irradiance)

  • 7 kW system cost: $25,800 before incentives
  • SC state solar tax credit (25%, $3,500/yr cap, over 2 tax years): -$6,450
  • Sales tax exemption: -$1,800
  • Santee Cooper rebate (where available): -$3,000 (varies)
  • Net cost: approximately $14,550
  • Annual electricity production: 8,600 kWh
  • Annual savings: $1,204 (at $0.14/kWh average rate, with avoided-cost export credit on excess)
  • 25-year lifetime savings: $30,100
  • Payback period: 12 years

Hilton Head (Berkeley Electric Cooperative service area, 4.4 kWh/m2/day irradiance)

  • 8 kW system cost: $28,000 before incentives
  • SC state solar tax credit (25%, $3,500/yr cap, over 2 tax years): -$7,000
  • Sales tax exemption: -$1,950
  • Net cost: approximately $19,050
  • Annual electricity production: 9,500 kWh
  • Annual savings: $1,330 (at $0.14/kWh average rate)
  • 25-year lifetime savings: $33,250
  • Payback period: 14.5 years

These scenarios assume no financing costs and stable electricity rates. Actual savings will vary based on your roof condition, shading, and local utility rates.

South Carolina Solar Incentives Still Available in 2026

Federal Tax Credit (Section 25D) - Expired

The Residential Clean Energy Credit expired on December 31, 2025. Homeowners who installed systems before that date can claim the credit on their 2025 tax return. Systems installed in 2026 do not qualify.

The only federal pathway in 2026 is a third-party-owned solar lease under Section 48E. In this arrangement, the solar company retains ownership and you purchase the electricity at a fixed rate. Construction must begin before July 4, 2026. Learn more at the IRS Section 25D guidance page.

Property Tax Exemption

South Carolina exempts the added home value from solar installations from property tax assessment. If your home value increases by $25,000 due to solar, your property taxes will not increase. This exemption applies statewide and has no expiration date.

Sales Tax Exemption

Solar equipment and installation labor are exempt from South Carolina sales tax. This saves approximately 7% on the total system cost. For a $25,000 system, this exemption is worth roughly $1,750.

South Carolina Solar Energy Tax Credit (State)

South Carolina offers a state income tax credit for residential solar of 25% of the installed system cost. The credit is capped at $3,500 per tax year and $35,000 over the lifetime of the taxpayer, with up to a 10-year carry-forward for any unused portion. For a typical $25,000 to $28,000 residential system, the full 25% credit ($6,250 to $7,000) is usually claimed over two consecutive tax years because of the $3,500 annual cap.

This is the most significant state-level incentive currently available to South Carolina homeowners and meaningfully improves payback economics. Before relying on it, confirm current eligibility with the South Carolina Department of Revenue or DSIRE, the legislature has periodically considered changes to renewable energy credits, so verifying status in the year you place the system in service is important.

Duke Energy Carolinas Rebate and Net Metering

Duke Energy Carolinas has historically offered rebates of up to $1.50 per watt for residential solar systems in certain program years; availability and funding caps change, so check the utility’s current solar program before assuming a rebate is in place. Duke Energy Carolinas also offers 1:1 net metering on its current residential solar tariff, meaning excess solar power is credited at the full retail electricity rate.

Dominion Energy South Carolina

Dominion Energy South Carolina is the rebranded former South Carolina Electric & Gas (SCE&G), which Dominion acquired in 2019. Dominion Energy South Carolina has more limited net metering than Duke Energy Carolinas, with excess generation credited at avoided cost rates that are typically 30 to 50 percent lower than retail. Rebate availability changes year to year; do not assume a rebate is in place without confirming directly with the utility.

Santee Cooper Rebate

Santee Cooper, South Carolina’s state-owned utility, has offered rebates of up to $1.25 per watt for residential solar systems, subject to program funding availability. Santee Cooper does not offer traditional 1:1 net metering; excess power is credited at a lower avoided cost rate. Check the current Santee Cooper Solar Schedule before sizing your system.

Net Metering Status

Net metering in South Carolina is utility-specific. Duke Energy Carolinas offers 1:1 net metering on its current residential solar tariff. Dominion Energy South Carolina, Santee Cooper, and most cooperatives credit excess generation at avoided cost or other reduced rates. Check with your utility before installing to understand how excess power will be credited.

For a comprehensive list of state incentives, visit the DSIRE database.

Is Solar Worth It in South Carolina Without the Federal Credit?

Yes, solar remains financially viable in South Carolina, though payback periods are longer than they were with the federal tax credit.

Payback Analysis:

  • With the state’s 25% solar tax credit, sales tax exemption, property tax exemption, and any available utility rebate, most systems pay for themselves in 12 to 15 years.
  • After payback, you benefit from 10+ years of free electricity (system lifespan is typically 25-30 years).
  • Electricity rates in South Carolina are rising 2-3% annually; solar locks in your rate for 25 years.
  • Property tax exemption adds value without increasing your tax bill.

When Solar Makes Sense:

  • You own your home and plan to stay 10+ years.
  • Your roof is in good condition and faces south or southwest.
  • You have minimal shading from trees or buildings.
  • Your utility offers a rebate (most major SC utilities do).
  • You want to hedge against rising electricity costs.

When Solar Is Less Attractive:

  • You plan to move within 7-10 years (payback may not occur).
  • Your roof is heavily shaded or needs replacement soon.
  • Your utility does not offer net metering or rebates (rare in SC).
  • You have very low electricity consumption (small system, limited savings).

A third-party-owned lease (Section 48E) may be worth considering if you want to avoid upfront costs and still benefit from federal incentives, though you will not own the system or claim the property tax exemption.

Top Cities for Solar in South Carolina

  • Charleston: 4.2 kWh/m2/day irradiance, Duke Energy rebates, strong solar market, coastal location with good sun exposure.
  • Columbia: 4.1 kWh/m2/day irradiance, Dominion Energy South Carolina service area, state capital with growing solar adoption.
  • Greenville: 4.0 kWh/m2/day irradiance, Duke Energy rebates, upstate location with solid solar potential.
  • Myrtle Beach: 4.3 kWh/m2/day irradiance, Santee Cooper rebates, coastal irradiance advantage, popular retirement destination.
  • Hilton Head: 4.4 kWh/m2/day irradiance, highest solar irradiance in the state, strong homeowner interest in renewable energy.
  • Beaufort: 4.3 kWh/m2/day irradiance, coastal location, good solar resources, Beaufort County Electric Cooperative service area.

What to Look for in a South Carolina Solar Installer

  1. South Carolina Licensing and Insurance: Verify the installer holds a valid South Carolina electrical contractor license and carries general liability and workers’ compensation insurance. Check the SC Department of Labor, Licensing and Regulation database.

  2. Utility Rebate and State Credit Experience: Confirm the installer has processed rebates with Duke Energy Carolinas, Dominion Energy South Carolina, Santee Cooper, or your local utility, and that they understand how the SC state 25% solar tax credit (with the $3,500 annual cap and $35,000 lifetime cap) is filed. They should handle the paperwork and ensure you receive the full benefit.

  3. Interconnection Knowledge: The installer must understand South Carolina’s interconnection process and utility-specific requirements. They should manage all paperwork with your utility.

  4. Equipment Quality: Ask about panel and inverter brands. Reputable installers use Tier 1 manufacturers (Canadian Solar, Enphase, SMA, Fronius) with strong warranties.

  5. Warranty Coverage: Ensure the installer offers at least a 10-year workmanship warranty and uses equipment with 25-year product warranties. Review what is and is not covered.

  6. References and Reviews: Request at least three local references and check Google, Yelp, and the Better Business Bureau. Look for consistent 4.5+ star ratings and positive comments about communication and follow-up.

  7. Transparent Pricing: Get detailed quotes from at least three installers. The quote should itemize equipment, labor, permitting, and rebates. Avoid vague or unusually low bids.

Next Steps for South Carolina Homeowners

Solar costs and incentives change frequently. The best way to understand your savings potential is to request free quotes from multiple installers in your area. Reputable installers will provide a detailed analysis of your roof, electricity usage, and available incentives at no cost.

When comparing quotes, focus on the net cost after rebates and the estimated payback period. Ask each installer about their experience with your utility’s rebate program and net metering policy.

For additional research, consult the SEIA state market data and NREL solar resource maps to verify irradiance and installation trends in your region.

Want solar power without the installer process at all? A solar generator pairs portable panels with a battery in one box that ships to your door — no permits, no roof work, no sales calls. See our South Carolina backup power guide for the sizes that fit South Carolina homes and outage risks.

Sources for 2026 data: IRS (Section 25D and Section 48E guidance), DSIRE (state incentive database), South Carolina Department of Revenue, South Carolina Energy Office, Duke Energy Carolinas, Dominion Energy South Carolina, Santee Cooper, Berkeley Electric Cooperative, SEIA (state market data), NREL (solar resource maps), EnergySage (cost benchmarks).