Statewide · 2026
South Carolina solar tax credit and incentives in 2026
The short answer · as of July 2026
South Carolina offers a 25% state income tax credit (Form TC-38) capped at $3,500 per tax year, with a lifetime cap near $35,000 and a 10-year carry-forward, plus property-tax exemption on qualifying systems of 20 kW or less and sales-tax exemption on equipment. The 30% federal residential credit expired for systems placed in service on or after 1 January 2026.
The main credit
The 25% South Carolina solar tax credit, and the cap nobody mentions
This is the same anywhere in South Carolina. What is usually left out is how the annual cap changes when the money actually reaches you.
| Rule | Detail |
|---|---|
| Credit rate | 25% of the installed cost of an eligible system |
| Annual cap | $3,500 per tax year |
| Liability cap | No more than 50% of your South Carolina tax liability in one year |
| Carry-forward | Up to 10 years for the unused balance |
| Lifetime cap | Around $35,000 |
| Expiry | None currently scheduled |
| How to claim | Form TC-38 with your SC return for the year the system is placed in service |
Worked example: how a $6,000 credit actually arrives
- Tax year one: $3,500 claimed, assuming your state liability is at least $7,000 so the 50% rule does not bite.
- Tax year two: the remaining $2,500 claimed under the carry-forward.
- A larger system spreads across three returns instead of two.
- Low state tax liability stretches it further, and if you never owe enough you may not capture the full amount at all.
This matters before you sign a loan. Financing structured around a single large first-year credit payment does not match how this credit works in South Carolina, and it catches people out.
Exemptions, and what ended
Property tax, sales tax, and the federal credit
Property tax. South Carolina exempts qualifying residential renewable energy systems of 20 kW or less from property tax, so an eligible rooftop system should not raise your assessed value. The cash value scales with local millage, so it is worth more in higher-millage counties. The 20 kW threshold is a real reason not to oversize.
Sales tax. Solar equipment is exempt from the 6% state sales tax, applied at purchase rather than claimed later.
The federal credit is gone. Section 25D gave homeowners 30% of system cost and expired for systems placed in service on or after 1 January 2026. On a typical system in this state that is over $7,000 of support that no longer exists. You can verify the position with the IRS. We flag it on every page because it is the most common piece of misinformation in South Carolina solar right now.
Commercial is different. Federal commercial provisions and depreciation may apply where the residential credit does not. We are installers, not tax advisers, so we document projects properly and route structuring questions to your CPA.
The bigger lever
What each South Carolina utility pays for exported power
People search for incentives and mean tax credits. What your utility credits you every month for 25 years matters more, and it is the single biggest difference between two otherwise identical South Carolina homes.
| Utility | Export credit | Upfront rebate | Notes |
|---|---|---|---|
| Dominion Energy South Carolina | roughly 2.8–4.1¢ per kWh | None | Time-of-use export credits, about $14/month rider, November true-up at avoided cost |
| Duke Energy Carolinas (Upstate, York County) | roughly 2.6–4¢ per kWh | PowerPair at or near capacity | One-for-one ended 2021. Battery bill-credit programme has remained open |
| Duke Energy Progress (Pee Dee, Florence) | roughly 2.6–4¢ per kWh | PowerPair closed late 2025 | One-for-one ended 2021. Battery bill-credit programme has remained open |
| Santee Cooper (Grand Strand, parts of Berkeley) | about 4.16¢ summer, 3.84¢ otherwise | $950/kW up to $5,700 | Lowest retail rate in the state, but the only real upfront rebate. Waitlisted |
| Electric cooperatives (Berkeley, Palmetto, Edisto, Horry, Mid-Carolina, Fairfield, York, Black River) | Varies by cooperative | Varies | Terms are set by each cooperative and must be confirmed per address |
The practical consequence everywhere in South Carolina: a kilowatt-hour you use as you generate it is worth roughly three to five times one you export. That is why we size systems to your consumption rather than to your roof area.
By town
Incentives where you live
The state credit is the same everywhere. Your utility, your county's millage and any rebate are not, so each town has its own page with the figures that apply there.
- Charleston incentives
- Mount Pleasant incentives
- Daniel Island incentives
- Summerville incentives
- North Charleston incentives
- Columbia incentives
- Beaufort incentives
- Hilton Head Island incentives
- Hanahan incentives
- Bluffton incentives
- Walterboro incentives
- Ridgeville incentives
- Blythewood incentives
- Lexington incentives
- Sumter incentives
- Florence incentives
- Myrtle Beach incentives
- Fort Mill incentives
- Aiken incentives
- North Augusta incentives
- Graniteville incentives
- Beech Island incentives
- Savannah incentives
- Pooler incentives
- Richmond Hill incentives
- Port Wentworth incentives
- Bloomingdale incentives
- Rincon incentives
- Evans incentives
- Grovetown incentives
- Harlem incentives
- Cumming incentives
- Woodstock incentives
- Canton incentives
- Dawsonville incentives
- McDonough incentives
- Locust Grove incentives
- Dallas incentives
- Covington incentives
- Monroe incentives
- Lawrenceville incentives
- Loganville incentives
- Conyers incentives
- Winder incentives
- Dacula incentives
- Grayson incentives
- Braselton incentives
- Woodbridge incentives
- Manassas incentives
- Ashburn incentives
- Leesburg incentives
- Sterling incentives
- Fredericksburg incentives
- Stafford incentives
- Centreville incentives
- Burke incentives
- Virginia Beach incentives
- Chesapeake incentives
- Suffolk incentives
- Midlothian incentives
- Glen Allen incentives
- Mechanicsville incentives
- Chesterfield incentives
- Chester incentives
South Carolina incentives FAQ
Straight answers on SC solar incentives
What solar incentives does South Carolina offer in 2026?
A 25% state income tax credit on Form TC-38, capped at $3,500 per tax year with a lifetime cap near $35,000 and a 10-year carry-forward. Qualifying residential systems of 20 kW or less are exempt from property tax, and solar equipment is exempt from the 6% state sales tax. The 30% federal residential credit expired for systems placed in service on or after January 1, 2026.
Is the 30% federal solar tax credit still available in South Carolina?
No. The federal Residential Clean Energy Credit under Section 25D expired for systems placed in service on or after January 1, 2026. A great many pages and quotes still apply it. If a quote you are comparing includes 30% federal, that quote is out of date by several thousand dollars.
How does the $3,500 annual cap on the South Carolina credit work?
The credit is 25% of installed cost, but you can only claim $3,500 in any one tax year, and no more than 50% of your state tax liability. The unused balance carries forward for up to 10 years. So a system whose 25% credit is $6,000 is claimed as $3,500 in year one and $2,500 in year two, not as a single payment.
How do I claim the South Carolina solar tax credit?
File Form TC-38 with your South Carolina income tax return for the year the system is placed in service, and keep your final invoice and commissioning documentation. Because the credit is non-refundable and capped annually, the amount you actually capture depends on your state tax liability. Confirm your own position with a tax professional.
Do any South Carolina utilities offer a solar rebate?
Santee Cooper runs a rebate of $950 per kW up to $5,700, requiring a NABCEP-certified crew and Trade Ally participation, capped at 6 kW-AC per meter and funded annually with a waitlist. Duke has run PowerPair for solar plus battery, but Progress territory closed to new applications in late 2025 and Carolinas has been at or near capacity. Dominion Energy South Carolina runs no upfront residential rebate.
Did net metering end in South Carolina?
Not for new systems. One-for-one net metering closed to new applicants on 1 June 2021, when Dominion moved new customers to Solar Choice, crediting exports on a time-of-use basis at roughly 2.8 to 4.1¢ per kWh with a monthly rider. Customers who applied before 16 May 2019 kept retail credit until 31 December 2025, and those who applied between 16 May 2019 and 31 May 2021 keep it until 31 May 2029. Duke ended one-for-one in 2021 and credits roughly 2.6 to 4¢. Santee Cooper credits about 3.84 to 4.16¢. Cooperatives and municipal utilities set their own terms.
Read first
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What the current rules allow, and how to check whether a proposal has applied them correctly.
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The other half of the South Carolina picture
Incentives are only one side of the arithmetic. What your utility pays for the power you export is usually the larger side, and in South Carolina it varies by provider rather than by city.
- Net metering in South Carolina What your utility pays for exported power
- Every South Carolina market we serve Grouped by the utility that serves them
Who serves your meter
South Carolina's net energy metering chapter governs electrical utilities. Cooperatives are not electrical utilities under it and set their own export credit, so two neighbouring streets can be worth measurably different amounts for the same roof.
Free assessment · South Carolina
Find out which incentives you qualify for
We read your bill, check who actually serves your meter, and tell you what your roof will carry. If solar does not make sense at your address, we will say so, and that answer is free too.
- We confirm who actually serves your meter before we quote anything
- We pull the permits and handle the interconnection paperwork
- If your HOA needs an architectural-review packet, we prepare it
Prefer to talk? (843) 310-1128
Free, no-pressure assessment
See which incentives you actually qualify for
We will confirm your utility and territory, size a system to your real usage, and show you what the state credit is worth in your tax position, with no guaranteed-savings math.
Mon–Sat, 10am–6:30pm ET · We typically follow up within the hour.