US residential solar · 2026 data

Solar Panels in South Carolina (2026): Cost, Savings and Payback

Q: Is the federal solar tax credit still available in South Carolina in 2026?

Not for homeowners who buy a system. The federal §25D Residential Clean Energy Credit (30%) ended for expenditures made after December 31, 2025 under Public Law 119-21. A system completed in 2025 is claimed on the 2025 return with Form 5695, and unused credit carries forward. Leased or PPA systems can still pass along the business §48E credit if placed in service by December 31, 2027 (or if construction began by July 4, 2026), but no specific discount is guaranteed.

Q: How much is the South Carolina solar tax credit worth and how do I claim it?

The credit is 25% of the purchase and installation cost, limited each year to the lesser of $3,500 per facility or 50% of your South Carolina tax liability. Unused credit carries forward up to 10 years, and federal credits do not reduce it (SCDOR Revenue Ruling 24-2). On a $23,400 system the total is about $5,850, which you claim on Form TC-38. Confirm current eligibility with the SC Department of Revenue or a tax professional; this is not tax advice.

Q: How does net metering work with Duke Energy and Dominion Energy in South Carolina?

New rooftop solar customers who applied on or after June 1, 2021 are on Solar Choice tariffs created under Act 62 of 2019. Time-of-use rates are required, so what your solar is worth depends on when you use power. Duke uses monthly netting with a minimum bill; Dominion rolls credits forward and pays leftover credits at a low avoided-cost rate. Customers who applied earlier are on earlier rules. Confirm current terms on your utility's tariff.

Q: How long is the solar payback in South Carolina?

About 13 years in our simple-payback model for a 9 kW, $23,400 system after the 25% state credit, or about 12 years if you include 2% annual rate growth and 0.5% annual panel degradation. Without the state credit, simple payback is about 17 years. Inputs: 12,870 kWh a year worth about $1,350 in year one at 15¢/kWh with a 0.70 offset. Your result depends on your utility, rate plan, roof and usage.

Est. net savings

$23,000

Over 25 Years (estimate) · no federal credit

$23,400 Installed cost

13.0 yrs Simple payback

9.0 kW Typical system

Typical result:

About 23 panels (9.0 kW, ~400 W each)
$23,400 installed at $2.60/W
SC 25% state credit worth ~$5,850
~13-year simple payback after the state credit

✓ EIA rates & NREL sun data ✓ 2026 federal policy applied ✓ Open methodology

Updated October 5, 2026 · 11 min read ·By Green Energy Calculators Editorial Team

Calculate My Savings View South Carolina Solar Data

25 years without solar vs with solar

Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate

Without solar

25-year utility bills

Rates rise ~3% per year

With solar

System cost + remaining bills

Installed cost, no federal credit

Difference

Estimated 25-year net

+$23,025

Before any state or utility incentives

Author Green Energy Calculators Editorial Team

Editorial policy No paid placements

Last updated Oct 5, 2026

Data approach EIA rates · NREL sun hours · 2026 federal policy · methodology

A typical 9 kW home solar system in South Carolina costs about $23,400 installed in 2026 and saves roughly $1,350 in its first year. South Carolina’s 25% state income-tax credit (about $5,850 on this system) cuts the net cost to about $17,550 and brings simple payback to roughly 13 years. The 30% federal credit ended for homeowner-owned systems completed after December 31, 2025.

How we calculated this. These are estimates built from the assumptions below, not quotes. Your utility, rate plan, roof and shading can move the result a lot.

Assumption	Value used	Basis
Installed cost	$2.60 per watt	EnergySage South Carolina average, $2.59/W (Sept 2026)
Annual output	1,430 kWh per kW (about 4.9 peak sun hours × 365 × 0.80)	Columbia-area irradiance from NREL-based data; system losses are our assumption
Retail rate	15¢/kWh	EIA monthly residential averages for South Carolina ran about 14–16¢ in 2026
Bill offset	0.70	Our assumption: each solar kWh is worth about 70% of the average retail rate under time-of-use Solar Choice billing
Rate growth / degradation	+2% / −0.5% per year	Rates rose roughly 12% over six years per EIA data; degradation is a common industry assumption
State credit	25%, lesser of $3,500/yr or 50% of tax liability	SC Department of Revenue

The 9 kW example: 9 × 1,430 = 12,870 kWh a year × 15¢ × 0.70 ≈ $1,350 in year one. $23,400 − $5,850 state credit = $17,550 net cost, and $17,550 ÷ $1,350 ≈ 13 years. State inputs are on our South Carolina data page; more detail is on our methodology page.

Which utility serves your address matters. Dominion Energy South Carolina serves Columbia, Charleston and much of the Lowcountry; Duke Energy serves much of the Upstate around Greenville and Spartanburg. Electric cooperatives and municipal utilities serve many other areas and set their own rules. North Carolina shares Duke as a utility, but the tariffs are state-specific.

How much does solar cost in South Carolina by system size?

South Carolina solar by system size (model: $2.60/W, 1,430 kWh per kW, 15¢/kWh, 0.70 offset, 25% SC credit, no federal credit, 2026)

System	Annual output	Installed cost	SC state credit	Year-1 savings	Net cost after credit	Simple payback after credit
6 kW	~8,580 kWh	$15,600	$3,900	~$900	$11,700	~13 years
8 kW	~11,440 kWh	$20,800	$5,200	~$1,200	$15,600	~13 years
9 kW	~12,870 kWh	$23,400	$5,850	~$1,350	$17,550	~13 years
10 kW	~14,300 kWh	$26,000	$6,500	~$1,500	$19,500	~13 years

Table summary: Payback is about the same for every size because cost and savings both scale with system size in this model. What changes is the dollar amount: each added kW costs about $2,600 and adds about $150 of first-year savings. A credit above $3,500 is claimed over more than one tax year, and it is capped at 50% of your South Carolina tax liability, so you need roughly $7,000 of state tax in a year to use the full $3,500 that year.

South Carolina solar cost by system size, 2026. A 9 kW system is about $23,400 before incentives and $17,550 after the 25% state credit. Source: EnergySage SC average $2.59/W (Sept 2026); SC Department of Revenue credit rules.

Chart summary: Costs are modeled at $2.60 per watt, so each added kW adds about $2,600 before incentives and about $1,950 after the state credit. The gap between the two bars is the 25% South Carolina credit ($3,900 on 6 kW, $6,500 on 10 kW). No federal credit is included because the 30% credit ended for homeowner purchases completed after December 31, 2025.

To size a system, divide your annual kWh from 12 months of bills by about 1,430. A home using 12,900 kWh a year needs about 9 kW. Oversizing earns less, because exported power is not credited at the full retail rate.

How much will a 9 kW system save over 25 years?

Cumulative bill savings vs. net cost, 9 kW system (net cost after the SC credit is $17,550)

Year	Cumulative bill savings	Position vs. net cost
1	~$1,350	−$16,200
5	~$6,960	−$10,590
10	~$14,460	−$3,090
15	~$22,530	+$4,980
20	~$31,220	+$13,670
25	~$40,580	+$23,030

9 kW South Carolina solar: cumulative cash flow, Year 0 to 25. Break-even is year 12 with the state credit and year 16 without it. Assumes 2% yearly rate growth and 0.5% panel degradation. Source: EIA SC rates; SC Department of Revenue; no federal credit for 2026 installs.

Chart summary: Under these assumptions, cumulative savings pass the $17,550 net cost in year 12 and reach about $40,600 by year 25, an estimated net gain of about $23,000. Without the state credit the line crosses zero in year 16 once rate growth is included (simple payback with flat savings is about 17 years) and ends near $17,200. The chart treats the full state credit as received at Year 0 (in practice it is claimed over two or more tax years) and excludes a likely inverter replacement, maintenance, roof work and financing interest.

How Does Net Metering Work in South Carolina in 2026?

New rooftop solar customers of Duke Energy and Dominion Energy South Carolina are on Solar Choice tariffs, which require time-of-use rates and include minimum bills, so exported power is worth less than a simple 1:1 retail credit. That is why our model values each solar kWh at 70% of the average retail rate.

South Carolina’s Energy Freedom Act (Act 62 of 2019) required the Public Service Commission to create “Solar Choice Metering” tariffs. According to the SC Office of Regulatory Staff, customers who applied for net metering before May 16, 2019 receive full retail credit, and Solar Choice tariffs apply to new customer-generators beginning June 1, 2021. Details differ by utility, but in general:

Your bill uses a time-of-use rate, so power used during peak hours costs more and midday solar is worth the most when you use it on site.
A minimum monthly bill applies even if your panels cover all your usage.
Credits for exported power follow each tariff’s rules and are not a simple 1:1 retail credit.

What this means for sizing: design for about 100% of annual usage, not more, and shift flexible loads such as laundry, dishwashing, pool pumps and EV charging into sunny hours. A battery can also move midday solar into the evening peak, but costs vary widely, so get written quotes. Our solar net metering calculator models how much production you use directly versus export.

Interconnection usually takes several weeks after your local permit and inspection. You cannot export power until the utility issues permission to operate (PTO).

Run the numbers for your state

The savings calculator loads your state's average electricity rate, sun hours and net-metering rule. Then enter your own bill and installer quote.

Free · No signup · Runs in your browser

What Are Duke Energy’s Solar Rules in South Carolina?

Duke Energy’s South Carolina Solar Choice tariff puts solar customers on a time-of-use rate (Residential Solar Time-of-Use) with monthly netting, so the value of your solar depends on when you use power. Homes that use more electricity during the day get more from solar.

Duke’s settlement set a $30 monthly minimum bill for residential Solar Choice customers, so even a system that covers 100% of your kWh leaves a bill. Utilities revise rate schedules, so check Duke’s current tariff before you compare quotes.

Example for a Greenville-area home: a 10 kW system would produce about 14,300 kWh a year in our model, worth about $1,500 in year one at 15¢ and a 0.70 offset. Upstate Duke territory borders Georgia, where solar economics are similar but rules differ.

An installer that files interconnection paperwork promptly after permit approval can shorten the wait for PTO. For a national cost breakdown, see How Much Do Solar Panels Cost in 2026?.

What Are Dominion Energy South Carolina’s Solar Rules?

Dominion Energy South Carolina (formerly SCE&G) also uses a Solar Choice tariff with time-of-use pricing, monthly credit rollover and a minimum monthly bill. It serves Columbia, Charleston and much of the Lowcountry.

Under Dominion’s design, excess credits roll forward month to month and leftover credits are paid out at a low avoided-cost rate after the November billing period, according to a utility guide from installer Palmetto. Confirm the current minimum bill and avoided-cost rate on Dominion’s tariff.

Example for a Columbia home: an 8 kW system produces about 11,440 kWh a year in our model, worth about $1,200 in year one at 15¢ and a 0.70 offset. At $20,800 installed minus the $5,200 state credit, simple payback is about 13 years. Stress-test those assumptions with the solar payback calculator using your actual bill and roof. If a home is occupied only part of the year, daytime self-consumption is lower and payback is longer.

What Solar Tax Credits Are Left in South Carolina?

The main incentive left is South Carolina’s 25% state income-tax credit; the 30% federal credit is gone for homeowner-owned systems completed after December 31, 2025.

Federal status. Until December 31, 2025, homeowners could claim 30% of system cost under the federal §25D credit. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) ended it for expenditures made after that date (IRS FAQ). If your system was completed in 2025, claim it on your 2025 return with Form 5695; unused federal credit can carry forward. Our solar tax credit calculator explains what applies to your install date.

South Carolina state credit. South Carolina allows an income-tax credit of 25% of the cost of purchasing and installing a qualifying solar energy system on a facility you own. Each year you can use the lesser of $3,500 per facility or 50% of your state tax liability, and unused credit carries forward up to 10 years. Federal credits do not reduce it (SC Revenue Ruling 24-2). You claim it on Form TC-38. On a $23,400 system the total is $5,850: a household with enough tax liability would claim $3,500 in year one and the remaining $2,350 the next. Confirm the credit’s current status with the SC Department of Revenue before you sign a contract.

Other programs. Check DSIRE and your utility for current rebates or battery programs; we do not assume any utility rebate is available.

This is not tax advice; confirm with a tax professional.

Cash, Loan or Lease: Which Is Best for South Carolina Solar?

Cash gives the best return; a loan can leave you paying more each month than you save for years; a lease or PPA avoids upfront cost but the system owner, not you, claims tax credits.

South Carolina financing compared (9 kW, $23,400, model assumptions above, 2026)

Option	Upfront	Monthly picture	25-year outcome (estimate)	Who claims the SC credit?
Cash	$23,400	No payment; ~$113/mo year-one savings	~$23,000 net	You
Loan (20 yr, 7%, illustrative)	$0 down possible	~$181/mo payment vs. ~$113/mo savings	~$2,900 net (interest ≈ $20,100)	You, if you own the system
Lease / PPA	$0	Fixed payment or per-kWh price	Depends on price and escalator	The system owner

Table summary: A 7% loan is an illustration, not a quote. At that rate, interest consumes most of the 25-year gain, and the payment exceeds first-year savings for years. Compare quotes from several lenders and ask whether the state credit is applied to principal.

25-year net result, 9 kW South Carolina system: cash vs 7% loan. Cash nets about $23,000 with the state credit; the loan nets about $2,900. Source: model above; EIA SC rates; SC Department of Revenue; loan rate is illustrative.

Chart summary: Both bars are 25-year bill savings (about $40,575) minus what you pay for the system: $23,400 in cash, or 240 payments of about $181 on the loan, plus the $5,850 state credit where shown. Interest of about $20,100 is why the loan leaves roughly $20,000 less than cash. Without the state credit, the loan loses about $3,000 over 25 years. Leases and PPAs are not charted because their outcome depends on the contract price and escalator.

Leases and PPAs mean a third party owns the panels. The owner may still claim the federal §48E business credit if the system is placed in service by December 31, 2027 (or if construction began by July 4, 2026), and may pass some of that value into your price, but no discount is guaranteed. Compare the starting price with your current rate and check the annual escalator. If utility rates rise faster than the escalator, the deal improves; if they stall, it erodes.

Before committing, run each option side by side in the solar savings calculator. If you live near the state line, compare with Virginia and other neighboring states only for context; your own utility’s tariff is what counts.

Sources and review

SC Department of Revenue, Solar Energy Credit, S.C. Code §12-6-3587 and Revenue Ruling #24-2
SC Office of Regulatory Staff, Residential Solar Choice Rates Overview (2022)
IRS FAQs on Public Law 119-21 (Sections 25C, 25D and others)
EnergySage, South Carolina solar panel cost data (Sept 2026)
U.S. Energy Information Administration, South Carolina residential electricity prices (2026)
Palmetto, South Carolina utility guide (Duke and Dominion Solar Choice terms)

Frequently asked questions

Direct answers for US homeowners in South Carolina.

How much do solar panels cost in South Carolina in 2026?

About $2.60 per watt installed. EnergySage's South Carolina marketplace data showed an average of $2.59/W in September 2026, so a 9 kW system costs roughly $23,400 before incentives and a 6 kW system roughly $15,600. Individual quotes vary with roof complexity, equipment and installer, and some sources report higher per-watt prices, so compare at least three written quotes.

Is the federal solar tax credit still available in South Carolina in 2026?

How much is the South Carolina solar tax credit worth and how do I claim it?

How does net metering work with Duke Energy and Dominion Energy in South Carolina?

How long is the solar payback in South Carolina?

South Carolina solar by electric bill

See system size and payback for common monthly bills in South Carolina.

$200 $200/month electric bill Panels · cost · payback → $300 $300/month electric bill Panels · cost · payback →

View South Carolina solar data & incentives →

Major electric utilities in this state

Export credits, fees and interconnection rules differ by utility — confirm the current solar tariff with yours before sizing a system.

Dominion Energy SC Lowcountry & midlands Duke Energy Carolinas Upstate Santee Cooper Coastal co-ops Berkeley Electric Charleston area Blue Ridge Electric Upstate co-op York Electric Rock Hill area

How these numbers were calculated

Electricity rate: 15.93¢/kWh — South Carolina average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production: 5.3 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price: $3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit: $0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering: Net billing / reduced export credit — solar assumed to offset 70% of the bill. South Carolina's Solar Choice tariffs (Duke, Dominion) use time-of-use rates and minimum bills that reduce export value.
Model: Version 2026.10 · 3%/yr electricity price escalation · 0.5%/yr panel degradation · simple payback = installed cost ÷ year-1 savings
Policy checked: September 29, 2026 · Full methodology · Report an error

Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.