South Carolina Solar Incentive Programs

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South Carolina enjoys a warm climate with around 218 sunny days annually, providing a substantial amount of sunlight for solar energy initiatives. While it may not be at the top in terms of sunny days, South Carolina’s weather conditions still offer favorable circumstances for solar power projects. South Carolina offers a variety of solar incentives and rebates to help residents save money on their solar energy systems. Here are some of the incentives available to South Carolina home and business owners:

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

State Solar Tax Credit:

South Carolina offers its own state solar tax credit. Residents can receive a 25% state solar tax credit on the total cost of their solar system, including installation.

Net Metering:

Net metering in South Carolina is a billing arrangement for solar panel owners that credits them for excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can then be used to offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you not only save money but also contribute to a more sustainable energy future while helping maintain grid stability in South Carolina.

Utility Rebates:

South Carolina has a number of utility companies that offer rebates for solar installations. For example, Central Electric Power Cooperative offers a rebate of $0.50 per watt for residential solar installations and $0.25 per watt for commercial installations. Santee Cooper offers a rebate of $0.50 per watt for residential solar installations and $0.25 per watt for commercial installations.

Further information and programs can be found at the Programs.Dsireusa.org