Solar Incentives in South Carolina

South Carolina Code §12-6-3587 provides a 25% state PIT credit for solar energy systems installed on residential or commercial property in the state. The credit is capped at $3,500 per taxpayer per tax year (or 50% of the taxpayer's state tax liability for the year, whichever is less) — but unused credit carries forward up to 10 years, so most homeowners eventually claim the full 25%. Combined with the now-expired federal Section 25D ITC, this was historically among the most generous southeastern state stacks. As of 2026 with federal expired, the SC credit becomes the primary direct subsidy. File using SC1040 with Schedule TC-38. Confirm system eligibility (must be installed on a residential or commercial structure in SC, must be operational) before claiming.

Duke Energy Carolinas and Duke Energy Progress (the two Duke subsidiaries operating in South Carolina) offer 1:1 retail-rate net metering for residential rooftop solar customers up to 20 kW system capacity. The South Carolina Public Service Commission (SCPSC) supervises the framework under Act 236 (passed 2014) and subsequent settlements. Solar Choice metering tariff structures (Solar Choice Buyback or similar) may apply for newer interconnections — Duke has been transitioning some classes to time-of-use export compensation. Excess credits roll forward; year-end remaining credits are settled at the avoided-cost rate. Dominion Energy South Carolina (formerly SCE&G) operates a separate net-metering programme in the Columbia/Charleston coastal region.

South Carolina Code §12-37-220(B)(48) exempts the value added by residential solar energy systems from property tax assessment. The exemption applies automatically for residential PV; no separate claim form is required for residential systems. The county assessor evaluates the underlying property without including the renewable energy system's contribution to market value. For a $25,000 residential PV system that adds approximately $18,000 to home market value, this saves roughly $135–$200/year in property tax over the system's life depending on county millage rates. The exemption does NOT apply to commercial-scale systems above standard residential limits.