South Carolina is riding a solar wave, and it's not slowing down anytime soon. Thanks to the landmark Energy Freedom Act of 2019, the Palmetto State has become one of the fastest-growing solar markets in the U.S. This future-thinking legislation not only removed net metering caps but also opened up the market for more competition, driving down costs and ramping up installations. From consumer protections to job creation, the act has been a game-changer for South Carolinians looking to harness the sun's power.
Back in 2016, South Carolina had a modest 115 MW of installed solar capacity. Fast forward to 2022, and that number has skyrocketed to an impressive 2,314 MW. That's enough to power 388,000 average houses for a year!
Whether you're a homeowner looking to cut down on utility bills or a business aiming for sustainability, there's never been a better time to go solar in South Carolina.
While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
Cost of Solar in South Carolina
The average price for a home solar panel system in South Carolina is $17,340 for a 6 kW System or about $2.89 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
Average Cost 6 kW System
Average Cost 10 kW System
Estimated Tax Credit (10 kW System)
Average Cost/Watt
U.S.Average
$18,771
$31,285
$9,385.50
$3.13
South Carolina
$22,200
$37,000
$11,100
$3.70
U.S.Average
$18,771
$31,285
$9,385.50
$3.13
Most Costly State(Michigan)
$22,680
$37,800
$11,340
$3.78
Least Costly State(Arizona)
$14,640
$24,400
$7,320
$2.44
Costs by Solar System Size in Souther Carolina
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
System Size
System Cost
Cost After Federal Tax Credit
5 kW
$18,500
$8,785
6 kW
$22,200
$10,542
7 kW
$25,900
$12,299
8 kW
$29,600
$14,056
10 kW
$37,000
$17,570
Pros and Cons of Solar in South Carolina
Solar is not all rainbows and sunshine, even in the Palmetto State. Before you go all-in on solar, it's key to consider both the perks and the pitfalls. We're here to break down the most talked-about pros and cons, but at the end of the day, the choice is all yours.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
South Carolina Solar Pros
Reduce or eliminate electric bills
Energy independence from the grid
State Tax Credit of 25% of the purchase and installation costs
Solar is a very viable option in South Carolina. The state has made significant strides in solar-friendly legislation, like the Energy Freedom Act. It has opened up the market and removed net metering caps.
South Carolina also offers various incentives and tax credits to make solar installations more affordable. With a decent amount of sunshine and state policies that are encouraging solar adoption, going solar in the Palmetto State can be both a financially smart and eco-friendly move.
And while this all sounds great, consider your home and finances. Additional unexpected costs like roof structure reinforcements and permits could add up.
There are several ways you can purchase and/or finance your solar panel installation in South Carolina. Your goals and financial situation will dictate which option is best for you.
Cash Purchase
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
Solar Loan
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Solar Lease
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Renew your lease agreement
Purchase the system
End your lease agreement
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
Power Purchase Agreements
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
South Carolina Solar Incentives
There are a variety of incentives that make it financially appealing to go green in South Carolina. First off, you've got the Federal Solar Investment Tax Credit (ITC), which allows you to claim a 30% tax credit on your solar system if installed before the end of 2032. On the state level, South Carolina offers a generous 25% tax credit on the cost of your solar panel system, capping at $3,500 or 50% of your state tax liability for the year.
If you're a Santee Cooper customer, you can snag a $600 per kW rebate up to 6 kW. Plus, some manufacturers like LG even offer additional rebates. After taking advantage of these incentives, the cost for a 10.1kW system can range between $15,000 and $20,000.
This table shows the available incentives in South Carolina. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
South Carolina Solar Rebates: Some manufacturers like LG offer solar rebates. If you're a Santee Cooper power customer, you can get $600 per kilowatt (kW) up to 6 kW.
South Carolina Solar Tax Credit: You can claim a state tax credit of 25% of the purchase and installation costs, with a maximum credit applied in a single tax year of $3,500 or 50% of your state tax liability.
South Carolina Solar Companies
There are hundreds of solar companies in South Carolina. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Before You Install Solar Panels
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
What are the long-term savings and payback period for installing a solar panel system?
How will installing solar panels impact my home's value?
What is the system’s Return on Investment (ROI)?
Are there any specific design or aesthetic considerations for solar panel installation?
How do I weigh the environmental benefits against the costs of installation?
What are the specific terms and conditions for the installer?
It’s not Always Sunny in South Carolina
While solar sales have soared in South Carolina, reaching nearly 35,000 installations as of July of 2022, not everyone is satisfied. EnergyBot talks about what a PPA loan is and what customers are typically responsible for. We always recommend doing your due diligence as sometimes companies don’t play nice.
This one family's experience with Vivint (now Sunrun) highlights the complexities of solar leasing contracts, including an "heirs clause" that has left them financially strained. They claim that the lease will cost them about $12,000 more over the next 12 years compared to just paying for electricity.
Because of customer experiences like this, now there are regulatory changes aimed at consumer protection. The Distributed Energy Resource Program Act (Act 236) in 2014 and the Energy Freedom Act (Act 62) in 2019 have shaped solar leasing and net metering in the state. Despite these regulations, the Department of Consumer Affairs and the Office of Regulatory Staff have received numerous complaints, mostly against Sunrun and Vivint. The state advises consumers to thoroughly research and understand the terms before entering into any solar agreements.
Why Trust EnergyBot
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in South Carolina decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
South Carolina Solar FAQs
The cost of solar panel installation in South Carolina can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in South Carolina is $17,340 for a 6kW system or about or about $2.89 per watt.
The number of solar panels you would need depends on a variety of factors such as:
Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
Lower Electricity Bills: Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
Environmental Benefits: Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
Increased Home Value: Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
Long-Term Savings: While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.
Location: Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
Roof Orientation: Ideally, your roof should be facing south to get the most sunlight throughout the day.
Roof Condition: Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
When designing a solar system, there are several key factors to consider. You'll want to start by assessing your energy needs to determine the system size that will cover your consumption. Location matters, too—think about the angle and orientation of your roof, as well as any potential obstructions like trees or buildings that could block sunlight.
Don't forget to consider local climate conditions, as they'll impact your system's efficiency.
Finally, make sure to explore available incentives, rebates, and financing options to maximize your investment. It's a good idea to consult with professionals to tailor the system to your specific needs and local regulations.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction.
Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees.
If you're working with a solar installation company, they often handle the permitting process for you.
