Solar in South Carolina: market, incentives and SREC reality

Market snapshot

Solar in South Carolina by the numbers

Installed capacity

2,400 MW

Homes powered

280K

Solar share of electricity

6%

Solar jobs in state

3,200

Typical cost per watt

$2.60

US ranking

#14

South Carolina's solar market has been shaped by the 2014 Distributed Energy Resource Program Act and subsequent 2019 Energy Freedom Act, both of which supported residential solar growth. The state has one of the highest per-household solar economics in the Southeast thanks to the stacked tax credits (30 percent federal + 25 percent state). Growth has been steady, concentrated in the Charleston, Columbia, Greenville and Myrtle Beach metros.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in South Carolina

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, South Carolina has these state and local programmes.

South Carolina Solar Tax Credit

25 percent state income-tax credit on residential solar system cost, capped at $3,500 per year, with a lifetime cap of $35,000. Carries forward up to 10 years. Applies in addition to the 30 percent federal credit.

Property-tax exemption

South Carolina exempts the added value of residential solar systems from property-tax assessment. Automatic.

Sales-tax exemption on solar equipment

Residential solar PV equipment is exempt from South Carolina's 6 percent sales tax under the renewable energy equipment exemption.

Permits and interconnection

Permits and interconnection

Permit timelines in South Carolina vary by county. Charleston, Columbia, Greenville and Myrtle Beach metros commonly take 2 to 5 weeks for residential. SolarAPP+ adoption is limited. Interconnection with Duke Energy and Dominion typically runs 3 to 6 weeks post-install.

Running a solar company here

Running a solar company in South Carolina

Running a solar company in South Carolina means operating in a market with some of the strongest per-household economics in the Southeast: retail NEM plus 25 percent state tax credit plus 30 percent federal plus sales and property tax exemption. The customers who sign are often doing so because the stacked incentives shorten payback below 6 years in many cases. Lead costs on Google Search are moderate ($90 to $140 range) and competition is building but less saturated than Florida or North Carolina.

Questions people ask

Solar in South Carolina: FAQ

Does South Carolina have net metering?

Yes, full retail net metering at Duke Energy, Dominion Energy and Santee Cooper. Credits accrue monthly; annual excess is credited at avoided-cost rate. Programme caps have been raised multiple times under the Energy Freedom Act (2019).

What is the South Carolina solar tax credit?

25 percent of the installed system cost, capped at $3,500 per year and $35,000 lifetime. Carries forward up to 10 years. Combined with the 30 percent federal Residential Clean Energy Credit, total tax-based incentive on a typical $20,000 residential system can exceed $11,000.

How much does solar cost in South Carolina?

Residential solar in SC averages around $2.60 per watt installed, meaning a typical 7 kW system costs about $18,000 gross. After the 30 percent federal credit and 25 percent state credit (capped at $3,500), net cost is around $9,500 to $11,000.

Is solar worth it in South Carolina?

Yes, with some of the strongest stacked economics in the Southeast. South Carolina's combination of retail NEM, 25 percent state tax credit, 30 percent federal credit, and sales and property tax exemption produces 5 to 8 year payback for most residential installations.