
South Carolina
South Carolina solar in 2026
South Carolina still has something most states do not: a state income-tax credit with real weight. The catch is in the plumbing. It is 25% of cost, capped at $3,500 per facility per tax year and limited by tax liability, so it can take years to use. Pair that with Solar Choice tariffs and a proposal needs more than a headline percentage.
South Carolina has a better starting rate, not an automatic export deal
The retail price, ownership cost, and output look more workable here than in many low-rate markets. But exported energy remains a tariff question, not a duplicate of every kWh bought from the grid.
| Energy source | Type | Average price | What that means |
|---|---|---|---|
| South Carolina statewide blend | Electricity | 16.18¢ per kWh | Residential electricity benchmark reported by EIA through May 2026. |
| South Carolina residential gas | Natural gas | $27.35 per Mcf | EIA's May 2026 gas reference, equal to about 9.0 cents per thermal kWh. Each 1 Mcf has about 304 kWh of thermal energy. |
| Rooftop solar, owned | Electricity | ~7.0¢ per kWh | Owned-system cost annualized over 25 years using South Carolina EnergySage data and our PVGIS estimates. Solar Choice controls export treatment, while this figure simply describes ownership cost. |
For electricity, see EIA Table 5.6.A, May 2026. The fuel comparison follows EIA natural gas prices. The solar model is documented in our methodology.
The coast leads the production table
Charleston produces the highest of these four runs, while Columbia is the lower bound. That range is narrow enough that roof design and tariff terms can matter more than your side of the state line.
| Comparison point | Annual kWh from one kW | Annual projection for 14.4 kW |
|---|---|---|
| Columbia | 1459.0 | 21,010 kWh |
| Charleston | 1516.3 | 21,835 kWh |
| Greenville | 1470.6 | 21,177 kWh |
| Myrtle Beach | 1491.3 | 21,475 kWh |
Method: PVGIS v5.2 model runs by Solar Learning Lab on August 18, 2026, using the NSRDB radiation database. Assumptions: fixed roof mount, south facing, 30 degree tilt, 14 percent losses. Your roof will differ.
Solar Choice is the new-system rule
Act 62, the South Carolina Energy Freedom Act, changed the framework. New customer-generators moved to Solar Choice Metering Tariffs on June 1, 2021, replacing traditional one-for-one net energy metering for new applicants. Solar Choice measures exports for billing and crediting at a commission-determined value.
Two grandfathering deadlines matter. Applicants before May 16, 2019 had full-retail credit through December 31, 2025, now passed. Applicants from May 16, 2019 through May 31, 2021 keep full-retail credit through May 31, 2029. A new buyer should not borrow that older rate in a savings model.
A valuable credit arrives on a schedule
| Item | Value | Fine print |
|---|---|---|
| South Carolina Solar Energy Tax Credit | 25% of purchase and installation cost | Up to $3,500 per facility per tax year or 50% of tax liability, whichever is less. Unused credit carries forward for 10 years (SCDOR Form TC-38). |
| Federal 25D | Ended December 31, 2025 | Lease and PPA providers can still claim 48E and may share value in pricing (CRS). |
South Carolina has two timelines to model
The first timeline is tax use. The state credit equals 25% of purchase and installation cost, but the claim is capped at $3,500 per facility per tax year or 50% of the taxpayer's tax liability, whichever is less. Unused credit can carry forward for 10 years. That makes a large headline credit meaningful, but it also means the timing depends on a household's tax position rather than the installation date alone.
The second timeline is the tariff. Act 62, the South Carolina Energy Freedom Act, was enacted in 2019 and signed May 16, 2019. New customer-generators moved to Solar Choice Metering Tariffs beginning June 1, 2021. Solar Choice measures exported electricity for billing and crediting at a commission-determined value. It replaced the older one-to-one expectation for new applicants.
The remaining grandfathered group deserves a separate calculation. Customers who applied between May 16, 2019 and May 31, 2021 retain full-retail credit through May 31, 2029. Applicants before May 16, 2019 had the full-retail credit only through December 31, 2025, a date already passed. A property sale, a battery decision, or a revised proposal should not assume that everyone is on the same tariff.
One final service-area check matters. Utilities with fewer than 100,000 customer accounts are exempt from Chapter 40. Ask the installer which utility's rules apply and request the exact Solar Choice components used in the forecast. South Carolina has a real incentive, yet the credit and the tariff solve different parts of the economic question.
The state's market scale does not remove the need for this audit. South Carolina had 2,046.9 MW of solar capacity in 2024, ranking 20th of 51. EnergySage puts the average state system at 14.54 kW, $37,650 before incentives, $2.59/W, and a 15.4-year payback. Use that only as market context. The homeowner's tax liability, tariff, and pattern of consumption are still what decide whether a particular offer is sensible.
SCDOR Form TC-38; SC ORS Solar Choice overview; S.C. Code Chapter 40.
Put the annual credit limit into the calculation
The calculator applies the $3,500 yearly limit. Tax liability and the 10-year carryforward determine when a household can use it, so it should not be counted as immediate cash without tax advice.
The PVGIS bounds cover four South Carolina locations. Charleston is highest in this sample, Columbia lowest.
Cash quotes in South Carolina cluster near $2.61 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.
Assumptions you can change
Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.
Cash purchase
$16,075 after state credit
- Year 1 benefit
- $150/mo
- Payback
- 9 years
- 20 year net position
- $27,626
South Carolina's state credit is 25 percent of eligible cost, but it is capped at $3,500 per facility per tax year and 50 percent of tax liability, with a 10-year carryforward.
Solar loan
$225/mo 15 yr payment
- Year 1 net
- -$75/mo
- Upfront
- $0
- 20 year net position
- $3,132
The $3.81 per watt loan input is the $2.61 cash figure plus the $1.20 LBNL loan-over-cash spread.
Lease / PPA
$0 down you buy the power
- Year 1 net
- -$73/mo
- Upfront
- $0
- 20 year net position
- -$18,006
A lease or PPA provider may still claim federal 48E. Ask whether that value is reflected in the rate, especially because exports use Solar Choice tariffs.
Estimates, not quotes. Inputs use South Carolina's EIA rate, PVGIS production runs, and EnergySage cost data. The calculator applies the state credit only up to its annual cap and treats all production as retail value, which oversimplifies Solar Choice exports. We are a solar installer and we also partner with other solar companies. See our disclosures.
South Carolina's decision points, in order
- Confirm whether your utility serves more than 100,000 accounts, because smaller utilities are exempt from Chapter 40.
- Model the $3,500 credit as an annual cap, not a single discount.
- If you were interconnected during the 2019 to 2021 window, keep records of your May 31, 2029 grandfathering date.
- Ask the installer to identify the exact Solar Choice tariff components in the proposal.
South Carolina installers to research
These names and ratings are EnergySage marketplace profiles, not paid placement. A marketplace score is a different signal from a local Google review set.
Solar Energy Partners
Greenville, SC
4.8(19 EnergySage reviews)
Cape Fear Energy Systems
Serving South Carolina
5.0(46 EnergySage reviews)
Firefly Solar
Piedmont, SC
4.9(33 EnergySage reviews)
Palmetto Energy
Columbia, SC
4.8(887 EnergySage reviews)
Ratings snapshot: EnergySage marketplace, August 2026 review. Zero companies paid us and none are endorsed by us. Confirm the installer's applicable electrical and local licensing before signing.
Get a South Carolina estimate that separates tariff from credit
Four brief inputs produce a data-led starting estimate. We are a solar installer and we also partner with other solar companies. Read our disclosures.
What does your monthly electric bill look like?
South Carolina average is $150 per month (EIA, 2024).