Solar in South Carolina – What Consumers Need to Know

Workers installing solar panels on the roof of a building.

The passage of the SC Energy Freedom Act means big opportunities for the future of solar energy in South Carolina. Through the provisions in this legislation, more homeowners and businesses will be able to take advantage of this renewable and clean energy source.

In many instances, solar energy has the potential for customers to save money on their energy bill – but only if it is done right and if customers do their homework.

While finances may not be the driving factor behind the decision to use solar, we recommend treating solar like any other major investment. Here is a step-by-step approach to take in considering a move toward solar.

First, educate yourself about solar.

The SC Office of Regulatory Staff (ORS) Energy Office has developed SOLAR.SC.GOV, a one-stop-shop about solar energy in South Carolina. It includes information about the benefits of solar, how to choose the right system for your needs, installation and maintenance, and costs and financial incentives. This site also includes a downloadable booklet, A Consumer Guide to Solar for the South Carolina Homeowner, that includes information that you need when choosing a solar system.

Second, determine if solar is feasible in your area.

Contact your electric provider, because you will need their approval in order to connect to the grid. Some providers do not buy back power and, among those who do, terms of the buy-back plans may vary. Also, if you are in a homeowners’ association, be sure to check with them to see if they allow solar.

Third, identify qualified contractors.

Scammers prey on the uninformed. Be sure to do your homework in identifying qualified contractors. You can turn to groups that know South Carolina’s solar landscape to help in your decision making. Non-profit organizations such as the S.C. Solar Council and the S.C. Solar Business Alliance maintain lists of solar companies on their websites, and the SC Residential Builders Commission (RBC) registers and/or licenses the individuals who can install and do other necessary work related to solar panels. You can view that information on the S.C. Department of Labor, Licensing and Regulation’s website.

Fourth, request several bids and ask questions.

Contact several solar companies from the pool of qualified candidates, get multiple quotes, and ask for references. With competition on the rise, it is to your advantage to compare prices among comparable, qualified contractors. The website also contains a complete list of questions to ask your installer.

Keep in mind that bids should not be the only consideration. Also ask whether each contractor has the necessary licenses and liability insurance with South Carolina. Make sure to verify with the S.C. Department of Labor, Licensing, and Regulation that the company has a valid contractor’s license and does not have any complaints pending before the Contractor’s Licensing Board.

Fifth, consider leasing.

Leasing, rather than owning, solar panels may be the preferable choice for some consumers, especially if the availability of a tax credit is not important. Those considering the leasing option should bear in mind that, by law, only companies approved by the ORS to offer leases can offer that service. If you decide to lease a solar system, visit the ORS website to ensure that the company has been approved as a leasing provider.

Finally, consider community solar.

In many utility territories, residential electric customers, schools, churches, and municipalities will be able to subscribe to or purchase panels on offsite solar farms and receive credit for solar generation on their energy bills each month. Contact your utility to see if that is possible for you. If capacity is not available through your utility now, see if you can get added to a waiting list.

Getting help.

If you do encounter a contractor or solar installer who causes you concern, you can contact your local Better Business Bureau.

For concerns or questions about solar leasing companies or investor-owned electric utilities, you can contact the ORS by phone at 1-800-922-1531. For concerns regarding solar sales, contact the S.C. Department of Consumer Affairs at 803-734-4200. If the contractor is licensed through the S.C. Department of Labor, Licensing, and Regulation, contact that agency as well, at 803-896-4470.

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Prepared by the South Carolina Energy Office.