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South Carolina

Commercial solar in South Carolina

Business credits and deadlines, utility limits, and how to judge a proposal for a South Carolina business.

Updated October 5, 2026 · Last verified: 5 October 2026

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4 Jul 2026 §48E construction-start line IRS Form 3468
$500k TC-54 annual limit SCDOR
100 kW co-op small commercial cap Berkeley, Palmetto
Repealed TC-58 large-system credit SCDOR

South Carolina business solar credits compared

CreditAmountLimitStatus
SC solar credit (SC Code §12-6-3587, Form TC-38)25% of cost of an owned system$3,500 per facility per year or 50% of liability; 10-year carryforwardAvailable; no end date for solar
SC Clean Energy Credit (Form TC-54)Amount certified by SCDOR$500,000 a year; 15-year carryforwardAvailable; confirm eligibility with SCDOR
SC Solar Energy Property Credit (Form TC-58)25% over five years (when available)Systems of at least 1,900 kWRepealed 31 December 2024
Federal §48ESet by federal law—Ends for solar placed in service after 2027 where construction begins after 4 July 2026

SC Code, SCDOR forms and manual, IRS Form 3468 instructions and Notice 2025-42, retrieved 5 October 2026.

The §48E construction deadline for South Carolina businesses

Federal §48E is the largest incentive left for a South Carolina business system, and it now has a clock.

Leased and business systems may use §48E; it ends for wind and solar placed in service after 2027 where construction begins after 4 July 2026 (Form 3468 instructions; Notice 2025-42).

What counts as beginning construction is set out in IRS Notice 2025-42.

A business planning a project in 2026 should ask its tax adviser how that notice applies before signing, because a start after 4 July 2026 leaves until the end of 2027 to place the system in service. Section 48E explained.

South Carolina utility limits for business solar

UtilityNon-residential terms we verified
Berkeley Electric CooperativeRenewable Surplus Rider: small commercial up to 100 kW AC; exports at 6.03¢/kWh; not available on time-of-day or demand rates
Palmetto Electric CooperativeNet Billing Rider: non-residential up to 100 kW; $250 application fee; 4.662¢/kWh for 2026–27
Greer Commission of Public WorksRate code 704, Small Commercial Renewables, with on-peak and off-peak credits; Tier 2 interconnection up to 100 kW
Santee CooperMetering and standby fees for solar were eliminated in April 2025, for residential and commercial customers; commercial solar rate not verified
Dominion Energy South CarolinaCommercial Solar Choice and other options exist; terms not verified
Duke Energy CarolinasCommercial solar options not verified

Where we write “not verified”, ask the utility for the current tariff sheet before any proposal is priced.

Demand charges and South Carolina commercial solar

Demand charges are why business solar in South Carolina is not a scaled-up home system. Many commercial bills charge for the highest kilowatt demand in the month as well as for energy.

Panels reduce energy bought, but a cloudy afternoon or a late-day load can still set the monthly peak, so solar alone may cut little of the demand charge. A battery dispatched against the peak is the usual tool.

Note that Berkeley Electric’s rider is not available on demand rates at all.

Ask for a proposal that models twelve months of your interval data, with energy and demand savings shown separately.

South Carolina businesses that look at solar

Warehouses and manufacturing

Large flat roofs and daytime loads; check roof age and structural capacity first, and whether a site exceeds co-op size caps.

Retail, offices and restaurants

Daytime opening hours match production; restaurants’ evening peaks may call for storage.

Hotels

Round-the-clock load means most output is used on site, which matters when export credits are low.

Farms

Poultry houses and irrigation pumps. Solar for farms in South Carolina.

Schools and nonprofits

Tax-exempt owners cannot use income tax credits directly. Ask a tax adviser about structures that let a taxable owner hold the system; PPAs are not permitted in South Carolina.

Financing and ROI for South Carolina business solar

South Carolina businesses usually buy with cash, a commercial loan or an equipment lease.

Leases of renewable generation must follow the state’s leasing article: a lessor certified by the Office of Regulatory Staff, one premises per lease.

A business-owned system can combine depreciation, §48E (within its deadline) and the state credits; the order and interaction are for your tax adviser.

Return on investment rests on the same split as at home: on-site use avoids your energy rate, exports earn the utility’s credit, and demand is a separate line. How commercial solar is assessed.

Evaluating a South Carolina commercial solar proposal

The tariff by name

Commercial rate, any solar rider, and the demand charge used.

Interval data, not annual totals

Twelve months of 15-minute or hourly use.

Energy vs demand savings shown apart

Demand savings are less certain.

Credit assumptions with dates

§48E construction start and placed-in-service dates; TC-54 certification status.

Roof and structure

Remaining roof life and a structural review by a South Carolina engineer.

A PPA offer

Third-party sales of electricity from a system on your premises are not permitted in South Carolina.

South Carolina commercial solar by city

Questions

Can a business claim the South Carolina solar tax credit?
Yes, if it owns the system. The credit is 25% of cost, but no more than $3,500 per facility per year or half the tax liability, with a 10-year carryforward.
What is South Carolina’s Clean Energy Credit?
A business credit claimed on Form TC-54, with an annual limit of $500,000 and a 15-year carryforward, on an amount certified by SCDOR.
Is the federal commercial solar credit still available?
Yes, §48E applies to business-owned solar, but it ends for systems placed in service after 2027 where construction begins after 4 July 2026.
Is the TC-58 solar property credit still available?
No. SCDOR lists the TC-58 Solar Energy Property Credit as repealed on 31 December 2024; it applied only to systems of at least 1,900 kW.
How large can a commercial solar system be on a South Carolina co-op?
Berkeley Electric allows small commercial systems up to 100 kW AC and Palmetto Electric up to 100 kW. Other utilities set their own limits.

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figures with a retrieval date
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Data as of Last verified: 5 October 2026. Authorship on this site is organizational: the analysis belongs to the desk rather than to a named individual, and we do not publish credentials we do not hold. Our editorial policy sets out how we source, date and correct what we publish.

Sources & retrieval dates