South Carolina’s Key Solar Incentives: A Breakdown

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South Carolina has emerged as a promising state for solar energy, thanks to a variety of incentives that make it more affordable and accessible for homeowners and businesses. With generous state tax credits, net metering policies, and utility-based rebates, South Carolinians have several ways to reduce the upfront costs of solar installations and maximize long-term savings. In this article, we’ll break down the key solar incentives available in South Carolina, explaining how they work and how you can take advantage of them to lower your energy bills and contribute to a greener future.

The Residential Clean Energy Credit

The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.

To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.

Net Metering

In South Carolina, residential and commercial solar panel users can benefit from net metering. This program enables individuals to generate electricity with their solar panels and send any excess power back to the grid. The surplus energy can be used later or sold to the utility company at a set rate. This setup encourages efficient solar energy use and offers financial incentives for adopting renewable energy systems.

Santee Cooper – Rooftop Solar Rebate Program

The Santee Cooper Rooftop Solar Rebate Program offers financial incentives for residential and commercial customers who install solar panels. Participants can receive a rebate based on the capacity of their solar energy system, which encourages the adoption of renewable energy by reducing upfront costs. 

Solar for All

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development. 
• The Southeast Rural Power: SFA Coalition (SE Rural Power Coalition), led by Groundswell, will launch and implement the Southeast Rural Power: SFA Program (SE Rural Power SFA Program). This initiative aims to deliver residential-serving community solar, energy storage to enhance community resilience, direct solar savings, energy efficiency improvements, and greenhouse gas emissions reduction for low-income and disadvantaged households. The coalition comprises eligible subrecipient nonprofit electric cooperatives and municipal utilities serving some of the most impoverished and energy-burdened communities in the Southeast. The program’s implementation strategy focuses on strengthening and transforming the residential solar market in the region by supporting new developers and installers with entrepreneurship resources, comprehensive project development and O&M support services, project financing assistance, and workforce development programs, including pre-apprenticeships and apprenticeships. 

• The South Carolina Office of Resilience (SCOR) is poised to amplify distributed solar generation and deliver tangible benefits to low-income and disadvantaged households and communities statewide. SCOR will inaugurate the Community Solar Initiative, a program geared towards providing residential-serving community solar to income-eligible residents, whether homeowners or renters, and collaborate with utilities to bolster existing utility-managed programs. Moreover, SCOR will coordinate with home energy efficiency and weatherization programs to synchronize efforts and engage low-income and disadvantaged households and communities effectively. Building upon the success of existing solar workforce training programs in South Carolina, SCOR will promote wider participation in these initiatives and facilitate the expansion of the solar workforce in the state. Lastly, SCOR will establish a Solar Innovation Fund to broaden solar opportunities, potentially including resilience hubs and solar and storage installations at affordable housing facilities.
• The Clean Energy Fund of Texas (TxCEF), in collaboration with the Bullard Center for Environmental and Climate Justice at Texas Southern University (BCECJ), collectively known as CEFBC, is dedicated to deploying technical assistance, private capital, and grants to minority-serving institutions. Together, these organizations aim to facilitate the establishment of residential-serving community solar projects in low-income and disadvantaged communities that face significant challenges related to energy policy and grid vulnerability. These projects are anticipated to result in emissions reductions, savings on household utility bills, generation of shared revenues through community ownership, and the mobilization of private capital.

SELF Solar System Loans 

SELF (Solar Energy Loan Fund) offers unsecured personal loans for home improvement projects, including energy efficiency and renewable energy upgrades. Key features include:

• Loan Amounts: $3,000 to $25,000
• Interest Rates: 5% to 9.99% fixed
• Terms: 3 to 10 years
• Fees: Origination fee of 2.5%, with a 1.25% discount for military, plus a project management fee of 2.75-2.99%
• Eligibility: Open to homeowners in Florida, Alabama, Georgia, South Carolina, and Tennessee

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.