SC incentive guide
South Carolina solar incentives in 2026
Last updated · every SC program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in South Carolina right now is 25% state tax credit. Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in South Carolina this year, there is no federal credit. That is a roughly $7,560 swing on an $25,200 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What South Carolina offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | Yes | 25% of system cost, capped per year at $3,500 or 50% of tax liability, carrying forward up to 10 years |
| Rebate or performance payment | No | — |
| SREC market | No | — |
| Sales tax exemption | No | — |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
South Carolina solar tax credit
South Carolina offers a residential solar income tax credit: 25% of system cost, capped per year at $3,500 or 50% of tax liability, carrying forward up to 10 years. On a typical 8 kW install at about $22,200, that is worth roughly $3,500. A credit only helps to the extent you owe SC income tax, so check your liability and any carry-forward rules before treating it as a discount.
South Carolina solar rebates and grants
South Carolina runs no statewide solar rebate or grant program in 2026. Individual utilities and municipalities sometimes do, and those are rarely advertised well — ask your utility directly what they pay toward a residential install.
South Carolina offers a 25% state income tax credit (capped per year at $3,500 or 50% of liability, carrying forward up to 10 years) — one of the largest state credits.
Net metering and export rates in South Carolina
South Carolina’s "solar choice" tariffs replaced legacy net metering: exports are credited below retail with time-of-use elements at Duke and Dominion.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a South Carolina home at an assumed $0.14/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in South Carolina costs roughly $19,200–$25,200 installed before incentives, producing about 11,200 kWh a year and saving around $1,292 in year one — a simple payback near 15–20 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are South Carolina solar tax credits worth in 2026?
South Carolina's solar income tax credit is 25% of system cost, capped per year at $3,500 or 50% of tax liability, carrying forward up to 10 years. On a typical 8 kW system costing about $22,200, that works out to roughly $3,500 — the cap is what binds, not the headline percentage. It is a credit against SC income tax, so you need enough state tax liability to use it.
Does South Carolina have solar rebates?
No. South Carolina has no statewide solar rebate or upfront grant program in 2026. Individual utilities and municipalities occasionally run their own, so it is worth asking your utility directly.
Is there a South Carolina solar property tax exemption?
Yes. South Carolina excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill.
What solar incentives are available in South Carolina in 2026?
South Carolina offers a 25% state income tax credit (capped per year at $3,500 or 50% of liability, carrying forward up to 10 years) — one of the largest state credits. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in South Carolina?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does South Carolina have net metering?
South Carolina’s "solar choice" tariffs replaced legacy net metering: exports are credited below retail with time-of-use elements at Duke and Dominion. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in South Carolina?
Before incentives, a typical 8 kW system in South Carolina runs roughly $19,200–$25,200. A state credit of 25% of system cost, capped per year at $3,500 or 50% of tax liability, carrying forward up to 10 years comes off that, subject to the cap and your tax liability. See our full South Carolina cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: