Why South Carolina Solar Is Accelerating in 2026
South Carolina installed 312 MW of new solar in 2025, bringing its total to over 1,900 MW — enough to power 250,000 homes (SEIA data). What's driving this growth? Electricity rates have risen 4.8% annually in South Carolina since 2020, among the highest rates of increase in the Southeast. For homeowners fed up with 10–15% rate hikes from Dominion Energy and Duke Energy, solar has become a financial necessity, not just an environmental choice.
South Carolina's solar advantage is its high electricity consumption. The average South Carolina household uses 1,150 kWh/month (EIA data), 22% above the national average, driven by air conditioning loads in hot, humid summers. This high consumption makes solar payback faster in South Carolina than in most Southeastern states.
Net Metering in South Carolina: Full Retail Credit (For Now)
South Carolina's net metering policy varies by utility type. For customers of investor-owned utilities (IOUs) — Dominion Energy SC, Duke Energy Carolinas, and SCANA — net metering with full retail credit is available:
- 1:1 credit ratio: Every kWh you send to the grid earns you a kWh credit at your full retail rate ($0.14–0.18/kWh).
- Annual true-up: Excess credits roll over month-to-month. At the anniversary month, unused credits are granted to the utility (you don't get paid for them). Size your system carefully to avoid large unused credit balances.
- System size limit: Up to 20 kW AC for residential net metering (generous compared to many states).
Important policy note: South Carolina's Public Service Commission (SCPSC) opened a docket in 2024 to review net metering rules. While no changes have been finalized for 2026, there is a risk that South Carolina could move to "outflow-only" net metering (crediting at wholesale rate) in the next 2–3 years. Now is the optimal time to lock in full retail net metering.
Dominion Energy vs. Duke Energy Carolinas: Different Utilities, Similar Solar Value
South Carolina's two largest utilities serve distinct regions and have slightly different rate structures:
Dominion Energy SC (Coastal & Central SC — Charleston, Columbia, Myrtle Beach):
- Average residential rate (2026): $0.168/kWh
- Recent rate increases: 5.2–7.8% annually since 2021
- Net metering: Full retail credit, 20 kW system limit
- Solar saves Dominion customers $1,500–2,000/year on average
Duke Energy Carolinas (Upstate SC — Greenville, Spartanburg, Anderson):
- Average residential rate (2026): $0.152/kWh
- Recent rate increases: 4.0–5.5% annually since 2021
- Net metering: Full retail credit, 20 kW system limit
- Solar saves Duke customers $1,300–1,700/year on average
Bottom line: Dominion customers see faster payback (7–9 years) because their rates are higher and rising faster. Duke customers see slightly slower payback (9–11 years) but still strong long-term returns.
The Federal Tax Credit: 30% Through 2032
The Inflation Reduction Act of 2022 extended the federal solar tax credit at 30% of system cost for systems installed through 2032. This applies to both equipment and installation labor.
Important: The tax credit is non-refundable, meaning it can only reduce your tax liability to zero — it won't result in a refund beyond your total tax owed. However, you can carry forward unused credit to future tax years.
For South Carolina residents, the federal credit is especially valuable because South Carolina does not have a state tax credit (the previous 25% credit up to $3,500 expired in 2019). The federal 30% credit is the primary tax incentive available.
Summer Performance: South Carolina's Solar Sweet Spot
South Carolina's hot, humid summers are actually ideal for solar production. While panel efficiency drops slightly at high temperatures (0.3–0.5% per °C above 25°C), the long daylight hours and abundant sunshine more than compensate:
- June production: A 7 kW system in Columbia produces 950–1,100 kWh (vs. 450–550 kWh in December)
- Annual production: 5.0–6.2 kWh per kW per day on average
- Hurricane resilience: Modern panels are rated for 140 mph wind loads (meets South Carolina building code). However, ground-mounted systems are more vulnerable to storm surge in coastal areas.
Net annual impact: A South Carolina system produces 95–105% of what an identical Texas system produces, making it one of the best states in the Southeast for solar ROI.
Real User Case: The Martinezes in Mount Pleasant (Charleston County)
Profile: Carlos and Elena Martinez live in a 2,400 sq ft home in Mount Pleasant. Their monthly Dominion bill averaged $185 ($2,220/year) after Dominion's 2025 rate increase. Their roof is 10 years old, south-facing, with no shading from trees.
System installed (May 2025):
- 10.4 kW system (26 × 400W panels)
- Total cost: $32,448 ($3.12/W)
- Federal tax credit: -$9,734 (30%)
- Net cost: $22,714
Performance (first 10 months):
- May 2025–February 2026: 11,200 kWh produced
- Dominion bill: $8 in summer months, $42 in winter months (vs. $185 before solar)
- Estimated annual savings: $2,040
- Simple payback: 11.1 years
Carlos told me: "Dominion's rate hikes were the last straw. Our solar system cut our bill by 88% in summer and 77% even in winter. With another rate increase likely this year, the payback keeps getting shorter."
South Carolina Solar Policy in 2026: Watch the Net Metering Review
South Carolina's solar policy has been relatively stable, but SCPSC's net metering review (opened 2024) could lead to changes in 2027–2028. Potential outcomes:
- Best case (continued full retail): SCPSC maintains current 1:1 net metering. Solar adoption accelerates as homeowners rush to lock in terms.
- Middle case (graduated credit): SCPSC implements time-of-use net metering, where credits vary by time of day. Solar still makes financial sense but payback extends 1–3 years.
- Worst case (wholesale rate credit): SCPSC moves to outflow-only net metering. Solar savings drop 40–60%, payback extends to 15–20 years.
My recommendation: If you're considering solar in South Carolina, install in 2026–2027 to lock in full retail net metering before potential policy changes.
Finding the Right Installer in South Carolina
South Carolina has over 50 solar installation companies. Based on 2025 data from the South Carolina Office of Regulatory Staff and customer reviews:
- Licensing: Ensure your installer holds a South Carolina electrical contractor license and employs NABCEP-certified designers/installers.
- Hurricane experience: Ask potential installers about their experience with hurricane-resistant racking (South Carolina building code requires panels to withstand 140 mph wind loads).
- Warranty: Ensure the installer offers minimum 10-year workmanship warranty and facilitates equipment warranties (25-year panel performance, 10–15-year inverter).
Environmental Impact: South Carolina's Clean Energy Goals
South Carolina has set a goal of 50% carbon reduction by 2030 (Executive Order 2019-19). Residential solar directly contributes to this goal. A typical 7 kW system in South Carolina:
- Produces ~10,500 kWh/year
- Offsets ~7.4 metric tons of CO₂ annually (equivalent to taking 1.6 cars off the road)
- Over 25 years: ~185 metric tons CO₂ offset
For environmentally conscious South Carolinians, this is often as important as the financial return — especially given South Carolina's vulnerability to sea level rise and extreme weather.