Financing & Incentives · South Carolina · 2026
South Carolina solar financing and incentives.
Compare cash, a solar loan, and third-party ownership before choosing how to pay. Then verify the current South Carolina credit, federal deadline, utility assumptions, and contract terms that affect the real project cost.
Start here
The federal credit ended. South Carolina’s did not.
Section 25D is unavailable for new residential clean-energy expenditures after December 31, 2025. The IRS also says that completing original installation after that date is treated as an expenditure after the deadline, even when payment occurred earlier. IRS guidance still permits unused credit from an eligible earlier year to carry forward; that is different from claiming a new credit for a 2026 project.
South Carolina’s income-tax credit follows separate state rules. It is nonrefundable, applies only to qualifying costs and ownership facts, and may take multiple tax years to use. Property-tax treatment has a statutory capacity condition, and this review found no general residential solar sales-tax exemption. Treat the sections below as a comparison map, then confirm current tax treatment with a qualified professional.
What South Carolina still offers
The incentives that actually apply in 2026
South Carolina 25% state solar tax credit
For an eligible owned system, the nonrefundable state income-tax credit is 25% of qualifying costs. The annual claim is limited to the lesser of $3,500 per facility or 50% of South Carolina income-tax liability, with unused credit carried forward for up to 10 years.
Ownership, completion, qualifying cost, tax liability, and filing facts control. Confirm the current rules and your return with a qualified tax professional.
Property-tax exemption
State law includes a property-tax exemption for qualifying renewable-energy resource property operating at no greater than 20 kW AC.
Confirm the system capacity, required documentation, and county administration rather than assuming every project is covered.
Sales tax belongs in the written price
This review did not identify a general South Carolina sales-tax exemption for a homeowner’s residential solar purchase. The proposal should state its tax treatment rather than subtracting an assumed exemption.
Have the seller identify the legal basis for any claimed exemption and confirm it with a qualified South Carolina adviser.
What your utility credits you
Net metering depends on who serves your address
What you get for the power you send back is set by your utility and the PSC, not by us. Those terms can change, and we don’t promise a credit or a rate. Here’s the factual lay of the land.
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Dominion Energy SC
Verify the account, current rider, tariff, and interconnection status
Dominion publishes program and tariff documents with cohort- and account-specific terms. Use the current bill and approved interconnection documents; do not infer the serving utility or export treatment from a city name.
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Duke Energy
First distinguish Duke Energy Carolinas from Duke Energy Progress
The two utilities have separate tariffs and transition records. Confirm the exact utility, service classification, cohort, time-of-use requirements, riders, and current export treatment before modeling a project.
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Santee Cooper
Confirm the account and current distributed-generation documents
Santee Cooper publishes separate interconnection, rate, rebate, and loan materials. Availability and economics are account- and program-specific; one document does not establish approval under the others.
Start with the utility name, rate code, and riders on the current bill. A city name is not enough, and electric cooperatives publish their own policies. Use the South Carolina utility guides and the current net-metering decision guide, then verify the exact account and program directly with the utility before relying on a rate, export credit, rebate, loan, or interconnection path.
How people pay for it
Ways homeowners pay for solar, plainly
Start with the same solar design and cash price, then compare the separate payment or ownership agreement. We don’t sell financing or push a lender; the signed terms and qualified financial and tax advice control.
Cash / upfront purchase
You own the system outright from day one.
ProThe buyer owns the system and can evaluate owner-dependent benefits, subject to the project, qualifying-cost, filing, and tax-liability rules.
ConsiderIt’s the largest upfront outlay. Whether it pencils out depends on your bill, roof, and utility, which the assessment shows in real numbers.
Solar loan
You finance the purchase and still own the system, paying it off over time.
ProFinancing does not automatically prevent South Carolina credit eligibility when the taxpayer owns the facility and is contractually obligated to pay the full qualifying system cost.
ConsiderCompare the same-scope cash price with amount financed, APR, every payment change, total payments, prepayment terms, security interest, and fees. Financing expenses are not qualifying state-credit costs under current DOR guidance.
Third-party ownership (lease / PPA)
A third party owns the system and you pay for the equipment or the power it produces.
ProThe structure can shift equipment ownership and certain operating duties to another party, depending on the signed agreement and product availability.
ConsiderUnder current South Carolina DOR guidance, a homeowner leasing the system does not qualify for the state credit because the homeowner did not purchase it; the lessor generally does not qualify because it does not own the facility. Compare escalation, total payments, production terms, transfer, buyout, roof work, removal, maintenance, remedies, and every contract party. Do not assume a business credit will reduce the customer’s price.
Before you sign
Separate the solar decision from the financing decision
The installer, lender, lessor, payment servicer, and warranty provider may be different companies. Confirm each party’s duties in the documents instead of treating the sales proposal as the complete agreement.
Normalize the price first
The CFPB’s solar-financing review explains why buyers should compare the same-scope cash price with the amount financed, APR, payment schedule, total payments, and any embedded dealer or program fee. The FTC homeowner guide also recommends checking liens, transfer, early termination, roof work, maintenance, and who receives incentives.
Read both South Carolina agreements
South Carolina Regulation 28-78 requires a loan, lease, or retail-installment agreement offered by or through the solar retailer to be a separate addendum to the renewable-energy facility agreement. It gives the consumer ten calendar days to cancel the covered facility agreement. Follow the cancellation instructions in every signed document; do not assume one notice automatically cancels a separate credit agreement. For covered consumer credit, compare the disclosures required under Regulation Z.
Verify a lessor before considering a lease
South Carolina requires a solar lessor to hold an ORS certificate before marketing or installing leased renewable-generation facilities. Check the current ORS solar-leasing information and certificate list, then compare every payment, escalation, warranty, utility-rate assumption, transfer condition, maintenance duty, and complaint route in the lease.
Our stance
What we won’t do
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We won’t promise a savings result
Project economics depend on the complete price, payment structure, household usage, design, current tariff, production model, maintenance, and tax facts.
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We won’t pitch an expired homeowner credit
Section 25D is unavailable for new expenditures after December 31, 2025. Prior-year carryforwards and business-owned projects require separate analysis.
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We won’t play tax advisor
We map the incentives in plain English and recommend you confirm eligibility with a licensed tax professional before counting on any figure.
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We won’t pressure you or push a lender
No countdowns, no “act now,” no partner logos. Just honest options and a free, no-pressure assessment.
Primary references
Check the rule behind each assumption
Current project decisions should use the actual contract, tax return, utility account, and live program documents. These official starting points support the framework above:
- IRS Residential Clean Energy Credit for the post-2025 Section 25D deadline.
- South Carolina Department of Revenue solar credit guidance for qualifying cost, annual limits, ownership, and carryforward rules.
- South Carolina Code Section 12-37-220(B)(53) for the property-tax exemption and capacity condition.
- South Carolina DOR sales-tax exemption index for checking rather than assuming residential purchase treatment.
- CFPB solar-financing issue spotlight and Regulation Z for cash-price, dealer-fee, payment-change, and covered-credit disclosures.
- FTC homeowner solar guide, South Carolina Regulation 28-78, and South Carolina ORS leasing information for ownership, cancellation, transfer, maintenance, and agreement questions.
Financing & incentives FAQ
Straight answers on what solar costs in 2026
Is there still a federal solar tax credit in 2026?
Section 25D is not available for new residential clean-energy expenditures after December 31, 2025. The IRS says completing installation after that date is treated as an expenditure after the deadline, even if you paid earlier. Unused credit from an eligible earlier year may still carry forward; that is not a new credit for a 2026 project. Verify tax treatment with a qualified professional.
What is South Carolina’s solar tax credit?
For an eligible owned system, South Carolina’s nonrefundable income-tax credit is 25% of qualifying costs. The annual claim is limited to the lesser of $3,500 per facility or 50% of state income-tax liability, and unused credit may carry forward for up to 10 years. Eligibility and usable credit depend on the taxpayer and project.
Will solar raise my property taxes?
South Carolina law includes a property-tax exemption for qualifying renewable-energy resource property operating at no greater than 20 kW AC. The capacity limit and administrative facts matter, so verify the system documentation and treatment with the county assessor or another qualified adviser.
How do most people pay for solar?
The main structures are an upfront purchase, a loan used to buy the system, or third-party ownership such as a lease or PPA when available. Ownership, cash price, amount financed, payment changes, total payments, transfer duties, roof work, and tax assumptions should be compared in the actual agreements.
Can you tell me my exact savings?
No provider can promise an exact savings number. The result depends on household usage, the roof, project price, financing terms, and how the serving utility, including an electric cooperative, credits solar. A free assessment can model the home and show the assumptions, but the utility and signed agreements control.
Read first
Guides on paying for solar in South Carolina
Cash, loans, leases, dealer fees and zero-down offers, audited with the disclosures South Carolina buyers are entitled to.
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Federal Solar Tax Credit in 2026: SC Guide
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