South Carolina Solar in 2026: The Honest Picture

South Carolina homeowners face a changed solar landscape in 2026. The federal Residential Clean Energy Credit (Section 25D), which once offered a 30% tax deduction on solar installation costs, expired on December 31, 2025. This is a significant shift, but it does not mean solar is no longer worthwhile in South Carolina. The state offers meaningful incentives, electricity rates are moderate to high, and solar irradiance is solid across the state.

The reality: South Carolina homeowners can still save $25,000 to $40,000 over 25 years with solar, even without the federal tax credit. State property tax exemptions, sales tax exemptions, and utility rebates remain in place. For those interested in federal benefits, a third-party-owned solar lease (Section 48E) is available, though it requires the installation company to retain ownership of the system.

This guide covers costs, savings, available incentives, and how to find a qualified installer in South Carolina.

Average Solar System Cost in South Carolina (2026)

A typical residential solar system in South Carolina ranges from 6 kW to 8 kW and costs between $24,000 and $29,000 before incentives. This translates to roughly $3.50 to $4.00 per watt after accounting for labor, equipment, and permitting.

Cost breakdown for a 7 kW system (typical for a 3-4 bedroom home):

  • Equipment (panels, inverter, racking): $12,000-$14,000
  • Labor and installation: $8,000-$10,000
  • Permitting, inspection, and interconnection: $2,000-$3,000
  • Total before incentives: $22,000-$27,000

South Carolina utility rebates significantly reduce this cost. Duke Energy Carolinas and SCEG both offer rebates of $1.25 to $1.50 per watt for residential systems. A 7 kW system qualifies for $8,750 to $10,500 in rebates, bringing the net cost down to $11,500-$18,250.

For current pricing in your area, consult the EnergySage solar cost benchmarks for South Carolina.

Real South Carolina Homeowner Savings (Sample Scenarios)

Savings depend on your location, electricity rates, system size, and available incentives. Here are realistic examples:

Charleston (Duke Energy Carolinas, 4.2 kWh/m2/day irradiance)

  • 7 kW system cost: $25,500 before incentives
  • Duke Energy rebate: -$10,500
  • Net cost: $15,000
  • Annual electricity production: 8,400 kWh
  • Annual savings: $1,260 (at $0.15/kWh average rate)
  • 25-year lifetime savings: $31,500
  • Payback period: 12 years

Columbia (SCEG, 4.1 kWh/m2/day irradiance)

  • 7 kW system cost: $26,000 before incentives
  • SCEG rebate: -$9,800
  • Net cost: $16,200
  • Annual electricity production: 8,200 kWh
  • Annual savings: $1,148 (at $0.14/kWh average rate)
  • 25-year lifetime savings: $28,700
  • Payback period: 14 years

Greenville (Duke Energy Carolinas, 4.0 kWh/m2/day irradiance)

  • 6 kW system cost: $23,000 before incentives
  • Duke Energy rebate: -$9,000
  • Net cost: $14,000
  • Annual electricity production: 7,200 kWh
  • Annual savings: $1,080 (at $0.15/kWh average rate)
  • 25-year lifetime savings: $27,000
  • Payback period: 13 years

Myrtle Beach (Santee Cooper, 4.3 kWh/m2/day irradiance)

  • 7 kW system cost: $25,800 before incentives
  • Santee Cooper rebate: -$8,750
  • Net cost: $17,050
  • Annual electricity production: 8,600 kWh
  • Annual savings: $1,204 (at $0.14/kWh average rate)
  • 25-year lifetime savings: $30,100
  • Payback period: 14 years

Hilton Head (Beaufort County Electric Cooperative, 4.4 kWh/m2/day irradiance)

  • 8 kW system cost: $28,000 before incentives
  • Cooperative rebate: -$8,000 (varies)
  • Net cost: $20,000
  • Annual electricity production: 9,500 kWh
  • Annual savings: $1,330 (at $0.14/kWh average rate)
  • 25-year lifetime savings: $33,250
  • Payback period: 15 years

These scenarios assume no financing costs and stable electricity rates. Actual savings will vary based on your roof condition, shading, and local utility rates.

South Carolina Solar Incentives Still Available in 2026

Federal Tax Credit (Section 25D) - Expired

The Residential Clean Energy Credit expired on December 31, 2025. Homeowners who installed systems before that date can claim the credit on their 2025 tax return. Systems installed in 2026 do not qualify.

The only federal pathway in 2026 is a third-party-owned solar lease under Section 48E. In this arrangement, the solar company retains ownership and you purchase the electricity at a fixed rate. Construction must begin before July 4, 2026. Learn more at the IRS Section 25D guidance page.

Property Tax Exemption

South Carolina exempts the added home value from solar installations from property tax assessment. If your home value increases by $25,000 due to solar, your property taxes will not increase. This exemption applies statewide and has no expiration date.

Sales Tax Exemption

Solar equipment and installation labor are exempt from South Carolina sales tax. This saves approximately 7% on the total system cost. For a $25,000 system, this exemption is worth roughly $1,750.

Duke Energy Carolinas Rebate

Duke Energy Carolinas offers a rebate of up to $1.50 per watt for residential solar systems. A 7 kW system qualifies for up to $10,500. The rebate is applied after system inspection and interconnection. Duke Energy also offers 1:1 net metering, meaning excess solar power is credited at the full retail electricity rate.

South Carolina Electric & Gas (SCEG) Rebate

SCEG provides rebates of up to $1.50 per watt for residential systems. The rebate is capped at $15,000 per system. SCEG’s net metering policy is less favorable than Duke Energy’s; excess power is credited at avoided cost rates, which are typically 30-50% lower than retail rates.

Santee Cooper Rebate

Santee Cooper, South Carolina’s largest utility, offers rebates of up to $1.25 per watt for residential solar systems. The rebate is capped at $12,500. Santee Cooper does not offer traditional net metering; excess power is credited at a lower avoided cost rate.

Net Metering Status

Net metering in South Carolina is utility-specific. Duke Energy Carolinas offers 1:1 net metering with no system size cap. SCEG and Santee Cooper offer limited net metering or avoided cost credits. Check with your utility before installing to understand how excess power will be credited.

For a comprehensive list of state incentives, visit the DSIRE database.

Is Solar Worth It in South Carolina Without the Federal Credit?

Yes, solar remains financially viable in South Carolina, though payback periods are longer than they were with the federal tax credit.

Payback Analysis:

  • With utility rebates and state tax exemptions, most systems pay for themselves in 10-14 years.
  • After payback, you benefit from 15+ years of free electricity (system lifespan is typically 25-30 years).
  • Electricity rates in South Carolina are rising 2-3% annually; solar locks in your rate for 25 years.
  • Property tax exemption adds value without increasing your tax bill.

When Solar Makes Sense:

  • You own your home and plan to stay 10+ years.
  • Your roof is in good condition and faces south or southwest.
  • You have minimal shading from trees or buildings.
  • Your utility offers a rebate (most major SC utilities do).
  • You want to hedge against rising electricity costs.

When Solar Is Less Attractive:

  • You plan to move within 7-10 years (payback may not occur).
  • Your roof is heavily shaded or needs replacement soon.
  • Your utility does not offer net metering or rebates (rare in SC).
  • You have very low electricity consumption (small system, limited savings).

A third-party-owned lease (Section 48E) may be worth considering if you want to avoid upfront costs and still benefit from federal incentives, though you will not own the system or claim the property tax exemption.

Top Cities for Solar in South Carolina

  • Charleston: 4.2 kWh/m2/day irradiance, Duke Energy rebates, strong solar market, coastal location with good sun exposure.
  • Columbia: 4.1 kWh/m2/day irradiance, SCEG rebates, state capital with growing solar adoption.
  • Greenville: 4.0 kWh/m2/day irradiance, Duke Energy rebates, upstate location with solid solar potential.
  • Myrtle Beach: 4.3 kWh/m2/day irradiance, Santee Cooper rebates, coastal irradiance advantage, popular retirement destination.
  • Hilton Head: 4.4 kWh/m2/day irradiance, highest solar irradiance in the state, strong homeowner interest in renewable energy.
  • Beaufort: 4.3 kWh/m2/day irradiance, coastal location, good solar resources, Beaufort County Electric Cooperative service area.

What to Look for in a South Carolina Solar Installer

  1. NC/SC Licensing and Insurance: Verify the installer holds a valid South Carolina electrical contractor license and carries general liability and workers’ compensation insurance. Check the SC Department of Labor, Licensing and Regulation database.

  2. Utility Rebate Experience: Confirm the installer has processed rebates with Duke Energy, SCEG, Santee Cooper, or your local utility. They should handle the paperwork and ensure you receive the full rebate.

  3. Interconnection Knowledge: The installer must understand South Carolina’s interconnection process and utility-specific requirements. They should manage all paperwork with your utility.

  4. Equipment Quality: Ask about panel and inverter brands. Reputable installers use Tier 1 manufacturers (Canadian Solar, Enphase, SMA, Fronius) with strong warranties.

  5. Warranty Coverage: Ensure the installer offers at least a 10-year workmanship warranty and uses equipment with 25-year product warranties. Review what is and is not covered.

  6. References and Reviews: Request at least three local references and check Google, Yelp, and the Better Business Bureau. Look for consistent 4.5+ star ratings and positive comments about communication and follow-up.

  7. Transparent Pricing: Get detailed quotes from at least three installers. The quote should itemize equipment, labor, permitting, and rebates. Avoid vague or unusually low bids.

Get Free Quotes From Vetted South Carolina Installers

Solar costs and incentives change frequently. The best way to understand your savings potential is to request free quotes from multiple installers in your area. Reputable installers will provide a detailed analysis of your roof, electricity usage, and available incentives at no cost.

When comparing quotes, focus on the net cost after rebates and the estimated payback period. Ask each installer about their experience with your utility’s rebate program and net metering policy.

For additional research, consult the SEIA state market data and NREL solar resource maps to verify irradiance and installation trends in your region.

Sources for 2026 data: IRS (Section 25D and Section 48E guidance), DSIRE (state incentive database), South Carolina Department of Energy Resources, Duke Energy Carolinas, SCEG, Santee Cooper, SEIA (state market data), NREL (solar resource maps), EnergySage (cost benchmarks).