Is Solar Worth It in South Carolina in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for South Carolina homeowners — without the federal ITC.
Cost Per Watt
$2.80
installed
Electricity Rate
$0.133
per kWh
Payback (No ITC)
14.7 yr
current reality
Payback (With 30% ITC)
10.3 yr
hypothetical
25-Year ROI
70%
return on investment
Incentive Breakdown — South Carolina
Available incentives for a typical 7kW residential solar system in South Carolina
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$4,900South Carolina offers a state income tax credit of 25% of system cost, capped at $3,500 per year (can carry forward 10 years).
SREC Market
Not AvailableSouth Carolina does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Key Incentives: State tax credit worth $4,900; Property tax exemption for solar; Sales tax exemption on solar equipment.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in South Carolina
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC
- $0
- Net Cost
- $19,600
- Annual Savings
- $1,334/yr
- Payback Period
- 14.7 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC (30%)
- -$5,880
- Net Cost
- $13,720
- Annual Savings
- $1,334/yr
- Payback Period
- 10.3 years
Impact: Without the federal ITC, South Carolina homeowners face a 4.4-year longer payback period — paying $5,880 more out of pocket.
Net Metering Policy — South Carolina
How South Carolina compensates your excess solar production
Reduced export credits or net billing — you earn less than retail for excess solar. Moderate impact on payback.
South Carolina transitioned from full retail net metering to a net billing structure in 2021 under Act 62.
Cost Per Watt Benchmark — South Carolina
South Carolina Average
$2.80/W
National Average
$3.05/W
Typical 7kW System
$19,600
South Carolina's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in South Carolina breaks even in 14.7 years. With the former 30% ITC, payback would drop to 10.3 years.
Without Federal ITC
14.7
years to break even
With Former 30% ITC
10.3
years to break even
Production Details
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