Is solar worth it in South Carolina?
At South Carolina’s average rate of 15.5¢/kWh and about 1350 kWh per kW of panels a year, a typical home pays back its system in roughly 12.7 years on electricity savings alone — no federal credit, which ended for buyers at the end of 2025 — then keeps saving. Run your own numbers below.
Sources: EIA · NREL · IRS. No federal credit — it ended 31 Dec 2025.
Independent estimate for guidance only — not a quote or advice. Good sun and retail net metering on the major utilities.
What drives solar payback in South Carolina
South Carolina homeowners pay about 15.5¢/kWh, which is 2.9¢ below the national average. A rooftop here generates roughly 1350 kWh per kW each year — about the typical US figure. On exports, South Carolina offers full retail net metering: Good sun and retail net metering on the major utilities.
South Carolina electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 22% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 13.21–17.06¢/kWh
A worked example
For a South Carolina home with a $136/month power bill (typical household usage at South Carolina’s rate):
That nets out to a payback of about 12.7 years — shorter than simply dividing net cost by year-one savings, because power prices climb ~2.5%/yr so your savings grow each year. Assumes 3.00 $/W installed before incentives and a typical 40% self-consumption; your actual cost, roof and usage will differ — adjust the calculator above.
Who supplies your power in South Carolina
South Carolina's grid is split between two large investor-owned utilities and a state-owned power company. Dominion Energy South Carolina (the former SCE&G) covers the Midlands and Lowcountry, while Duke Energy — through its Duke Energy Carolinas and Duke Energy Progress subsidiaries — serves the Upstate and Pee Dee. Santee Cooper, the state-owned utility, supplies parts of the coast directly and wholesales power to the state's electric cooperatives, such as Berkeley Electric and the Central Electric Power Cooperative. The two investor-owned utilities operate under the same statewide framework set by the 2019 Energy Freedom Act, so Dominion and Duke customers get broadly comparable net-metering terms; co-op and Santee Cooper members should check their own tariffs, which can differ.
What you’re paid for what you export
Will Dominion or Duke pay you retail for what you export? For now, yes. The 2019 Energy Freedom Act kept residential retail net metering alive on the big investor-owned utilities, so exports are credited at essentially the same rate you buy at, with surplus rolling forward month to month — on a typical home system, surplus daytime power keeps close to its full value. Two caveats. These are transitional 'solar choice' style tariffs, set by the Public Service Commission and open to revision, not a permanent guarantee; and whatever credit is left at the annual true-up gets settled at a lower avoided-cost rate, not retail. Co-op and Santee Cooper members may be offered less generous export terms, so confirm yours before sizing a system. On the big two, though, the deal remains genuinely good.
South Carolina incentives & taxes in 2026
South Carolina's headline incentive is real money: the Solar Energy System Credit is worth 25% of your installed system cost against state income tax. It is capped per year, with the unused balance carrying forward over several years, so most people claim it in instalments rather than in one go — the current cap and carry-forward rules are worth reading before you count the money. That credit does nearly all the local heavy lifting, because there is no meaningful SREC market here and no statewide rebate. Property-tax treatment for residential solar is generally favourable.
The 30% federal credit ended on 31 December 2025 and can now only reach a homeowner indirectly through a lease or PPA. Check the current state and utility programs on DSIRE’s South Carolina list, then type any incentive into the calculator above to see how it shortens your payback.
What solar costs in South Carolina
Expect quotes between $2.60 and $3.10 per watt — about what solar costs nationally — which prices a typical 8 kW system at $21,000-$25,000 before the state tax credit. Where you land inside that band depends on your roof, your equipment and your installer. Labour is cheaper here than in the Northeast, and with power at 15.4 cents/kWh and strong Carolina sun delivering about 1,350 kWh per kW each year, the underlying economics stack up reasonably well.
The honest verdict for South Carolina
South Carolina sits comfortably mid-table in 2026. You get good sun, retail-rate exports on Dominion and Duke, and a 25% state income-tax credit taking the edge off the upfront cost. It is not New Jersey: there is no SREC income and the export tariffs are transitional. Even so, with reasonable install prices and exports earning retail, an owned system on a major utility points to break-even in roughly nine to thirteen years. Before you sign, get both the state credit treatment and your net-metering terms in writing.
Sources for this page
Driving electric — or heating electric — in South Carolina?
Your home electricity rate also sets what it costs to charge an EV and whether a heat pump beats a gas furnace. See the South Carolina EV charging cost and the South Carolina heat pump vs gas comparison.