South Carolina · Tax credit · Deep-stack program
SC Solar Energy Tax Credit
Reduces residential solar owners' tax liability in South Carolina -- see the credit amount, who qualifies, and how it shortens payback below.
- 25% of cost, max $3,500/year
- stated benefit
- Residential
- eligible customers
- 14 yr
- South Carolina baseline payback
- 3
- other South Carolina programs
Deep-stack program · mid directory
South Carolina runs a 4-program DSIRE stack; this tax credit is one layer on a 14-year modeled baseline, not the whole story.
- Stack4 programs
- In-state #2/3
- Type #8/9
- Baseline14 yr
In-state directory place #2 of 3 (mid alphabet). National tax credit directory #8 of 9. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
Program description
South Carolina income tax credit of 25% of installed solar cost, up to $3,500 per year.
Program at a glance
- Program type
- Tax credit
- Eligible customers
- Residential
- Stated benefit
- 25% of cost, max $3,500/year
- State electricity rate
- 13.2¢/kWh
- South Carolina solar score
- 34/100
Solar's trajectory in South Carolina
The market this incentive operates in: total installed solar capacity in South Carolina reported to the EIA.
South Carolina's solar incentive stack
How this tax credit sits among South Carolina's 3 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Tax credit
Tax credit
1 programs
What this shows South Carolina tracks 3 incentive types; 1 of them, including this one, are tax credits. Credits reduce what solar owners owe directly, on top of whatever the other stacked types provide.
How this tax credit layers inside South Carolina's deep stack
The SC Solar Energy Tax Credit is a state-level credit against what you owe, tracked as one of South Carolina's solar incentives in the DSIRE registry. Eligibility is scoped to residential customers, with a stated benefit of 25% of cost, max $3,500/year. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. South Carolina averages 5.2 kWh/m²/day of usable sunlight and residential rates of 13.2¢/kWh, producing an estimated 9,110 kWh/year and $1,203 of annual utility offset on a typical 6 kW system costing $16,800. That baseline already implies a 14-year simple payback and a 25-year modeled net of roughly $13,275 before this incentive - every dollar this tax credit delivers compresses that payback further.
South Carolina bundles a deep incentive stack, so this program rarely stands alone. South Carolina has 4 solar incentive programs indexed in DSIRE, including adjacent options like SC Solar Property Tax Exemption, SC Net Metering. The state's net-metering policy is classified as partial, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Other South Carolina incentives
Frequently asked questions
Where does the SC Solar Energy Tax Credit sit in South Carolina's deep program stack?
How does this tax credit work beside South Carolina's other programs?
Who is eligible for the SC Solar Energy Tax Credit?
How does this incentive affect solar ROI in South Carolina?
Which other South Carolina programs stack with this one?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · South Carolina solar data · ROI calculator · All incentives.