Solar Calculator for South Carolina: Costs, Incentives & ROI
South Carolina's residential solar market is shaped by two policy developments homeowners must understand before comparing it to neighboring North Carolina or other Southeastern states: the 2019 transition away from retail-rate net metering to the Solar Choice Tariff under South Carolina Act 62 of 2019, and the twenty-five percent state Solar Energy Tax Credit under S.C. Code § 12-6-3775 — the most generous statewide solar tax credit structure in the United States when accounting for both the annual cap and the lifetime carryforward provisions. South Carolina Act 62 ended traditional retail-rate net metering, replacing it with the Solar Choice Tariff framework under PSC Docket 2019-184-E. Compensation for exported solar generation now ranges from approximately seventy-five to ninety percent of the retail electricity rate depending on the utility, rather than the full retail rate pre-2019 customers received. Customers who interconnected before the transition cutoff are grandfathered at retail-rate for the remaining term of their legacy agreements. Duke Energy Carolinas serves western South Carolina including Greenville, Spartanburg, and the Upstate. Dominion Energy South Carolina — formerly SCE&G, acquired by Dominion in 2019 — serves eastern South Carolina including Charleston and Columbia. Santee Cooper, a state-owned utility serving coastal and central South Carolina, operates its own Solar Choice Tariff framework. South Carolina's incentive structure stacks the federal thirty-percent ITC, the twenty-five-percent state Solar Energy Tax Credit capped at three thousand five hundred dollars per year with a lifetime maximum of thirty-five thousand dollars and five years of carryforward, and a full property tax exemption under S.C. Code § 12-37-220(B)(34) — making South Carolina's combined incentive value among the strongest in the Southeast.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in South Carolina
Average installed solar costs in South Carolina range from approximately two dollars and eighty cents per watt before incentives, reflecting a competitive installer market anchored by the Greenville, Columbia, and Charleston metropolitan areas. A standard six-kilowatt system costs between sixteen thousand five hundred and eighteen thousand dollars before incentives. The thirty-percent federal ITC reduces net cost to approximately eleven thousand five hundred fifty to twelve thousand six hundred dollars. South Carolina's twenty-five-percent state Solar Energy Tax Credit under § 12-6-3775 applies an additional credit of twenty-five percent of the full system cost against South Carolina income tax liability, subject to the cap of three thousand five hundred dollars per year — a six-kilowatt system at seventeen thousand dollars generates a four-thousand-two-hundred-fifty-dollar state credit, with three thousand five hundred dollars claimable in year one and the remaining seven hundred fifty dollars carrying forward to year two. The property tax exemption under S.C. Code § 12-37-220(B)(34) exempts the full assessed value increment of a solar installation from local property tax assessment, applying statewide without a local opt-in requirement. South Carolina does NOT exempt solar equipment from its six-percent state sales tax plus applicable local additions, distinguishing it from Maine and Vermont. The stacked federal ITC plus state credit plus property tax exemption produces aggressive effective-cost reductions for new South Carolina solar customers despite the Solar Choice Tariff transition.
- Avg. installed cost
- $2.80/W
- Typical 6 kW system
- $16,500–$18,000
Top Solar Incentives in South Carolina
Live incentive data not currently available for South Carolina. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in South Carolina
South Carolina residential electricity rates average approximately fourteen cents per kilowatt-hour on a blended basis, modestly above the national average and comparable to neighboring North Carolina. Duke Energy Carolinas customers in Greenville and Spartanburg typically pay thirteen to fifteen cents per kilowatt-hour, with tiered rate structures available. Dominion Energy South Carolina customers in Charleston and Columbia pay fourteen to sixteen cents, reflecting distribution costs across eastern South Carolina's more dispersed territory. Santee Cooper customers in coastal and central South Carolina typically pay twelve to fourteen cents, as the state-owned utility's generation mix — including nuclear, natural gas, and hydroelectric — produces somewhat lower fuel costs. At approximately fourteen cents per kilowatt-hour, South Carolina's rate environment is moderate, but the exceptional incentive stack — twenty-five-percent state credit, thirty-percent federal ITC, full property tax exemption — compensates by dramatically reducing net system cost and yielding payback periods that compare favorably to higher-rate states with less generous incentive structures.
Peak Sun Hours in South Carolina
South Carolina benefits from a strong solar resource across the entire state, with the Piedmont and coastal regions averaging approximately five to five and three-tenths peak sun hours per day on a south-facing tilted surface. The Upstate around Greenville and Spartanburg averages approximately five to five and two-tenths peak sun hours per day, comparable to the better-performing parts of North Carolina's Piedmont. Columbia and the Midlands average approximately five and one-tenth to five and two-tenths peak sun hours per day. Charleston and the coastal plain average approximately five to five and two-tenths peak sun hours, with some cloud cover variability during Atlantic-influenced summer thunderstorm season. South Carolina's favorable latitude — stretching from approximately thirty-two to thirty-five degrees north — provides meaningfully better solar resource than New England and mid-Atlantic states. A six-kilowatt system in Columbia or Greenville typically produces approximately seven thousand three hundred to seven thousand seven hundred kilowatt-hours per year, yielding annual savings of approximately one thousand dollars with a payback period of approximately six and a half years after the stacked incentive reductions.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,000
- Payback period
- 6.5 years
- 25-year net savings
- $28,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in South Carolina
- Columbia29201
- Charleston29401
- North Charleston29405
- Mount Pleasant29464
- Rock Hill29730
Common Questions About Solar in South Carolina
How does South Carolina's 25% Solar Energy Tax Credit work, and what are the caps?
South Carolina's Solar Energy Tax Credit — codified at S.C. Code § 12-6-3775 — provides a credit of twenty-five percent of installed solar system cost against South Carolina state income tax liability. This is the most generous statewide solar tax credit in the United States, stacking directly on top of the federal thirty-percent ITC for a combined first-year incentive of fifty-five percent of system cost before the annual cap applies. The credit is capped at three thousand five hundred dollars per tax year: if your twenty-five-percent credit exceeds three thousand five hundred dollars, the excess carries forward to the following tax year for up to five years total or until the credit is fully consumed. The lifetime maximum is thirty-five thousand dollars. As an example: a six-kilowatt system at seventeen thousand dollars generates a state credit of four thousand two hundred fifty dollars — three thousand five hundred dollars claimed in year one, seven hundred fifty dollars carried forward to year two. Claim the credit by filing Form TC-38 with your South Carolina individual income tax return. The credit applies to both equipment and installation costs. SC homeowners with low state income tax liability should plan for multi-year carryforward and consult a South Carolina tax professional familiar with TC-38.
What is South Carolina's Solar Choice Tariff and how does it affect solar returns?
South Carolina's Solar Choice Tariff is the compensation mechanism established under SC Act 62 of 2019 and SC PSC Docket 2019-184-E that replaced retail-rate net metering for new residential solar customers. Under traditional retail-rate net metering, homeowners received full retail rate credit — approximately fourteen cents per kilowatt-hour — for every exported kilowatt-hour. The Solar Choice Tariff replaces this with compensation typically ranging from approximately seventy-five to ninety percent of the retail rate depending on the utility, varying by Duke Energy Carolinas, Dominion Energy South Carolina, and Santee Cooper tariffs. Customers who interconnected under legacy retail-rate net metering before the transition cutoff are grandfathered at retail-rate compensation for the remaining term of their original interconnection agreement. The practical effect for new customers is that systems designed to maximize on-site self-consumption perform better economically than systems that significantly overproduce: the gap between retail-rate self-consumption value and Solar Choice Tariff export compensation means right-sizing a system to approximately offset annual consumption produces better financial returns than maximizing array size. South Carolina homeowners should request a production analysis that specifically accounts for Solar Choice Tariff compensation rates in their utility's territory.
Duke Energy Carolinas vs. Dominion Energy SC vs. Santee Cooper — what is the difference for solar customers?
South Carolina's residential electricity customers are served by three distinct utility structures, each with different rate levels and solar program characteristics under the Solar Choice Tariff framework. Duke Energy Carolinas serves western South Carolina — including Greenville, Spartanburg, and the Upstate — as the same investor-owned utility operating across western North Carolina. Duke administers the Solar Choice Tariff under its SC PSC-approved tariff, with residential rates typically in the thirteen to fifteen cent range and tiered rate structures rewarding self-consumption during peak hours. Dominion Energy South Carolina — formerly SCE&G before its 2019 Dominion acquisition — serves eastern South Carolina including Charleston and Columbia under its separate PSC tariff, with residential rates in the fourteen to sixteen cent range. Santee Cooper is a state-owned utility serving coastal and central South Carolina including Myrtle Beach and Conway, with rates typically in the twelve to fourteen cent range — somewhat lower than the investor-owned utilities. All three are required to offer the Solar Choice Tariff under Act 62 of 2019, but specific compensation rates and interconnection processes differ. Verify current tariff terms directly with your utility before finalizing system size and financial projections.
Is solar property-tax exempt in South Carolina, and what about sales tax?
South Carolina exempts solar energy systems from local property tax assessment under S.C. Code § 12-37-220(B)(34), providing a full exemption that prevents a solar installation from increasing a homeowner's property tax bill. When a solar system increases the appraised value of a South Carolina home, that value increment is entirely excluded from taxable assessed value. The exemption applies statewide without a local opt-in application, and it covers both solar photovoltaic systems and battery storage installed in conjunction with a solar installation. Across a twenty-five-year system life, a homeowner in a mid-range South Carolina county saves a cumulative one thousand five hundred to two thousand five hundred dollars in property taxes attributable to the solar installation. South Carolina's property tax exemption is a full one-hundred-percent exemption, placing it alongside Virginia and Maine and more favorably than North Carolina's eighty-percent partial exemption. However, South Carolina does NOT exempt solar equipment from the state's six-percent sales tax plus applicable local additions — homeowners pay full sales tax on installed system cost. The net effect of the 25% state credit, federal 30% ITC, and full property tax exemption offsets the absence of a sales tax exemption and produces aggressive combined incentive value.
Best Solar Installers in South Carolina
South Carolina requires solar installers to hold both an Electrical Contractor license from the SC Department of Labor, Licensing and Regulation (LLR) and a SC Residential Builders Commission license for general construction work. Verify both license types at the LLR public license search before signing a contract. NABCEP certification is a recommended quality indicator beyond the state licensing minimum.
- Get at least 3 quotes from different installers to compare pricing and equipment.
- Check installer ratings with the BBB before signing a contract.
- Verify contractor licensing with South Carolina Department of Labor, Licensing and Regulation (LLR) — Electrical Contractor license + SC Residential Builders Commission for general construction. Ask for proof of a 20–25 year panel warranty.
Top Utility Companies in South Carolina
Duke Energy Carolinas
Service area: Greenville, Spartanburg, Anderson, Gaffney, Upstate South Carolina
Tariff: tier-2, TOU
Residential rate: 13.0–15.0¢/kWh (as of 2026-05)
NEM program: SC Solar Choice Tariff — transition from retail-rate NEM (SC Act 62 of 2019, SC PSC Docket 2019-184-E); ~75-90% retail compensation for residential. Pre-2019 NEM customers grandfathered at retail rate for legacy contract term.
Dominion Energy South Carolina (formerly SCE&G)
Service area: Columbia, Charleston, Lexington, Sumter, Midlands and eastern South Carolina
Tariff: tier-2, TOU
Residential rate: 14.0–16.0¢/kWh (as of 2026-05)
NEM program: SC Solar Choice Tariff under SC PSC Docket 2019-184-E. Dominion Energy acquired SCE&G (South Carolina Electric and Gas) in 2019. Residential compensation ~75-90% retail rate. Pre-2019 NEM customers grandfathered.
Santee Cooper (South Carolina Public Service Authority)
Service area: Myrtle Beach, Conway, Georgetown, coastal South Carolina, central South Carolina
Tariff: tier-2
Residential rate: 12.0–14.0¢/kWh (as of 2026-05)
NEM program: SC Solar Choice Tariff — state-owned utility variant under Act 62 of 2019. Santee Cooper administers its own Solar Choice Tariff program consistent with SC PSC policy framework. Consult Santee Cooper directly for current residential compensation rate.
Net Metering Policy in South Carolina
- Version
- NEM transition
- Effective date
- 2019-05-16
- Buyback rate
- export-credit
- System size cap
- 20 kW
- Grandfathering
- Pre-2019 NEM customers grandfathered at retail-rate net metering for legacy interconnection agreement term; new applications enroll in Solar Choice Tariff
SC Act 62 of 2019 ended traditional retail-rate net metering; replaced with Solar Choice Tariff under SC PSC Docket 2019-184-E. Compensation varies by utility (typically ~75-90% retail rate for residential; consult specific utility for current rate). Pre-2019 NEM customers grandfathered at retail-rate net metering for legacy contract term. SC 25% Solar Energy Tax Credit (§ 12-6-3775) + federal 30% ITC + full property tax exemption partially offset Solar Choice Tariff vs. retail-rate NEM economics.
Property Tax Exemption in South Carolina
- Status
- full
- Exemption
- 100%
- Applies to
- solar-pvstorage
S.C. Code § 12-37-220(B)(34) — solar energy systems exempt from local property tax assessment statewide. A solar installation does not increase a SC home's taxable assessed value. SC also offers 25% Solar Energy Tax Credit (§ 12-6-3775) — 25% of system cost up to $3,500/year + $35,000 lifetime cap with 5-year carryforward — most generous statewide solar credit + cap structure in the US. Note: SC 6% state sales tax plus local additions applies to solar equipment (NOT exempt); homeowners pay sales tax on full installed system cost.