South Carolina Incentives for Solar Energy

Several years ago, South Carolina mandated the creation of a voluntary Distributed Energy Resource Program, with set targets for generation capacity from renewable energy sources. South Carolina’s tax credit makes solar energy a very favorable investment for home and business owners at this time. The South Carolina solar tax incentives have significantly increased the adoption of solar technology across the state. Homeowners are not only reducing their utility bills but also contributing to a more sustainable energy future. As awareness of these benefits grows, more residents and businesses are expected to invest in solar solutions.

South Carolina residents and businesses may be eligible for the following incentives:

• 25% tax credit for residential and commercial sectors
• Applies to solar thermal and solar electric systems
• Up to $3,500 a year, or 50% of taxpayer’s liability, whichever is less.
• Excess credit can be carried forward for 10 years.

Program Overview
(This is a state of South Carolina personal tax credit, administered by the South Carolina Department of Revenue. Click here for more information.)

Eligible Renewable Technologies:
Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Geothermal Heat Pumps, Hydroelectric (Small)

Applicable Sectors:
Commercial, Residential

Incentive Amount:
25% of eligible costs

Maximum Incentive:
In any given tax year, a maximum of $3,500, or 50% of taxpayer’s tax liability for that taxable year, whichever is less. If the amount of the credit exceeds $3,500 for each facility, the taxpayer may carry forward the excess for up to ten years.

Equipment Requirements:
Solar-thermal systems must be certified by SRCC or a comparable entity endorsed by the S.C. Energy Office

Carryover Provisions:
Excess credit may be carried forward up to 10 years

• Performance Based Incentive for residential customers up to 4 cents per kilowatt hour
• Bill Credit Agreement for commercial customers of 14 to 22 cents per kWh, based on system size, rate schedule, and tax status.
• Offered on a first-come, first-serve basis and until full program subscription