The Ultimate Guide to South Carolina Solar Tax Credits & Incentives in 2026
Spoke ArticleSouth Carolina2 min readVerified Q1 · 2026

The Ultimate Guide to South Carolina Solar Tax Credits & Incentives in 2026

SBI Editorial DeskUpdated Q1 · 20263 sections

South Carolina offers one of the most powerful tax incentive stacks in the Southeast. By combining federal credits with a highly generous state income tax credit, Palmetto State homeowners can eliminate a massive portion of their system's total cost.

01

The 30% Federal Investment Tax Credit (ITC)

The primary driver of your upfront savings is the Federal ITC. This allows you to deduct 30% of your total gross solar and battery system cost directly from your federal income taxes. If your system costs $28,000, you are eligible for an $8,400 federal tax credit. There is no maximum cap, and the credit rolls over to the next year if your tax liability is lower than the credit amount.

02

The 25% South Carolina State Solar Energy Tax Credit

South Carolina goes above and beyond with a state-level income tax credit. You can claim 25% of your eligible solar system costs against your South Carolina state income taxes. The maximum credit you can take in a single year is $3,500 (or 50% of your state tax liability, whichever is less). However, this credit carries over for up to 10 years, allowing you to capture the full 25% value over time.

03

Utility Rebates (Duke Energy)

If you are a Duke Energy customer in South Carolina, you may be eligible for specific solar rebates or smart thermostat incentive programs. While these utility-level funding blocks open and close rapidly, SunBeam Innovations actively monitors them to ensure our clients secure any available direct cash payouts.

End of report · SBI Editorial← All South Carolina reports
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