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Written by Saltanat Berdikeeva /
Edited by Jamie Cesanek /
Last updated 10/24/2023
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Solar panels are an excellent investment to reduce your electricity bills and carbon emissions. Solar generation is increasingly popular in South Carolina. The total installed solar energy capacity of 2,435 megawatts (MW) in South Carolina can power over 300,800 homes. Before you buy, it’s essential to learn about the cost of solar panels in Columbia and the available incentives.
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
The cost of solar panels in Columbia will depend on the installer. The Lawrence Berkeley National Laboratory estimates that the average cost of a residential solar system in the U.S. is $3.67 per watt. According to Find Energy, the average price per watt in South Carolina is $3.45, with a typical home requiring a 9-kilowatt (kW) solar system. It’s a bit higher than the national average system size of 8.6 kW. You will likely pay about $31,050 for a solar system in Columbia before rebates and tax incentives.
The cost of solar panels in Columbia will depend on factors like energy consumption, the size of your home and roof, and how much sunlight your property receives. While the cost of solar panels in South Carolina can reach upwards of $31,050, you can reduce it substantially with the help of federal and state incentives.
Let’s say you paid the state average electricity bill of $152.75 per month. Your average estimated payback period for solar panels in Columbia will be around 11 years after factoring in savings from the 30% federal Residential Clean Energy Credit.
| Price Per Watt | System Size (kW) | Cost | |
|---|---|---|---|
| South Carolina | $3.45 | 9 | $31,050 |
| U.S. | $3.67 | 8.6 | $31,558 |
According to Find Energy, the average price per watt in South Carolina is $3.45, which is lower than the national average of $3.67. However, your electricity use and house and roof size will play a significant role in determining the exact size of a solar system you will need. You can find the amount of electricity you consume every month from your electric bill. SaveOnEnergy’s energy calculator can also assist you in calculating your monthly power cost.
While the cost of solar panels has declined by about 43% over the last decade, they are still an expensive investment for most Americans. Using federal and state incentives will make a solar system more affordable. The federal Residential Clean Energy Credit lets you deduct 30% of the total cost of solar from your federal taxes for a given year.
Incentives help homeowners save thousands in solar costs and lower their carbon footprint. Here are the main incentive programs for Columbia residents.
| Incentive | Local, State, or Federal? | Incentive details |
|---|---|---|
| South Carolina Solar Tax Credit | State | South Carolina residential solar owners can claim a credit of 25%, or a maximum of $3,500 in any one tax year, of the costs of buying and installing a solar energy system. |
| Net metering | State | Net metering allows South Carolina solar owners to send their excess generation to the power grid and receive credits on their electric bills. The 2021 amendment to the state’s net metering policy preserved the full-retail rate value compensation for any excess solar generation from residential solar system owners. However, the electricity rate will vary during the day depending on peak and off-peak hours. |
| Utility solar incentives | Local | Utilities in South Carolina may provide more rebates to homeowners to lower the cost of their solar systems or receive additional net metering benefits for excess generation sent to the grid. Check with your utility for any further solar incentives available for solar owners. |
| Residential Clean Energy Credit | Federal | You can claim 30% of the total cost of a solar system and installation on your primary or secondary home in your federal income taxes for the year. |
There are over 80 solar companies in South Carolina, including 36 installers. If you are a Columbia resident, SaveOnEnergy.com® can help you choose the right solar company. Call us at the phone number on top of the screen or by filling out our solar estimator.
There are several ways to go solar. You can buy or finance a solar system, enter a leasing or power purchase agreement (PPA), or join a community solar program.
Buying and installing solar panels can be challenging if you rent your home. You must get permission from your landlord before you install anything. Besides, investing thousands in solar panels in someone else’s home may not be financially sensible if you live there for only a few years. With no upfront costs, installation of solar panels, or long-term commitment, joining a community solar program is a more practical way to go solar for renters. Under a community solar program, multiple residents subscribe to electricity from a local solar farm in exchange for bill credits.
Homeowners have several options to go solar, like buying or financing a solar system or signing a leasing contract or PPA. Purchasing a solar system is more beneficial because you can use various incentives to lower the total cost and own the system after an 11-year payback period in South Carolina.
You can lease a solar system from a solar company without purchasing it. PPAs are similar to leasing. The difference between them is you pay a fixed monthly amount for using the electricity from the panels when you lease. In a PPA, you pay a fixed price per kilowatt-hour (kWh) for the energy generated by the solar system.
Solar companies providing the lease and PPA contracts maintain ownership of the solar panels. Both solar leases and PPAs are long-term contracts of up to 25 years. You won’t be eligible for any federal or state incentives if you sign a solar lease or PPA. While PPAs and leasing are viable alternatives, buying or financing a solar system will lead to the largest long-term savings.
A typical 9 kW solar system in Columbia could cost about $31,050. Your home and roof sizes, energy use, and solar panel types will dictate the precise cost figures. Many solar owners have started including a solar battery in their systems, which can be an additional cost. Thanks to the 30% federal tax credit and state incentives, Columbia residents can lower the overall cost of solar panels.
Yes, solar panels can save you money on electric bills, particularly since electricity rates have significantly increased in recent months in most of the U.S. The average Columbia solar system cost could be recouped in about 11 years.
SaveOnEnergy can help you locate a solar panel installer. You can find installer reviews and helpful solar resources in our marketplace. Call the phone number on top of the screen or complete our solar estimator to talk to one of our energy experts.
Solar is a renewable energy source. Unlike fossil fuels, solar panels don’t emit hazardous air pollutants contributing to climate change and don’t use water to produce electricity. Solar energy reduces carbon emissions, which is critical to protecting people, ecosystems, and wildlife, and provides stable electricity rates for many years.