Does South Carolina Have Community Solar Laws?

Yes. South Carolina has a formally established regulatory framework that authorizes community solar programs and subscription-based solar participation. The foundation for these programs was created through Act 236, also known as the Distributed Energy Resource Program Act of 2014. This legislation directed investor-owned utilities to develop shared solar options for customers, opening the door for statewide participation in community solar energy.

Under Act 236, South Carolina’s major utilities, such as Dominion Energy (formerly SCE&G), Duke Energy Carolinas, and Duke Energy Progress, were required to create voluntary community solar programs for their customers. This legislation empowered utilities to design community solar farms, subscription plans, and bill-credit structures. As a result, South Carolina became one of the earliest southeastern states with a regulated community solar framework.

Act 236 was later supplemented by Act 62 in 2019, which continued supporting distributed energy growth and emphasized renewable-energy expansion. Although Act 62 did not create new community solar requirements, it helped maintain energy-market stability and supported the long-term viability of shared solar programs across the state. These legislative efforts reflect South Carolina’s broader goals of creating accessible renewable-energy opportunities while supporting grid modernization.

Low-income participation has also been a policy focus. While South Carolina’s laws do not mandate that a specific percentage of every community solar project must serve low-income subscribers, several utilities and nonprofit organizations voluntarily include affordability options. These may take the form of reduced subscription fees, priority enrollment, or partnerships with local community-action agencies to identify eligible households. Additionally, federal incentives and grant programs often support low-income community solar participation in South Carolina.

South Carolina’s legal and regulatory framework therefore creates a structured environment for community solar development, allowing residents, businesses, renters, churches, schools, and nonprofit organizations to participate in subscription-based solar farms without owning on-site equipment.

What is Community Solar?

Community solar is a renewable-energy model in which many customers share the output of a single solar installation, usually called a community solar farm. Instead of installing residential solar panels on their own homes, subscribers purchase or lease a subscription to a portion of the solar farm’s production. The utility then applies bill credits to the subscriber’s monthly electric bill, reflecting the amount of solar energy generated by their subscribed share.

Community solar energy is particularly appealing in South Carolina because many homes face installation barriers. Some properties have insufficient roof space, shading from trees, structural constraints, or homeowners-association restrictions. Many residents also rent their homes and cannot install solar panels. Community solar removes these obstacles by allowing customers to receive the benefits of solar energy without installing any equipment.

Community solar is a good option when:

You rent your home and cannot install panels.
You own a home but have a roof that is shaded, damaged, or not structurally suited for residential solar.
You want to go solar but do not want to commit to long-term equipment ownership.
You prefer a flexible, subscription-based solar model.
You want clean energy without maintenance responsibilities.
You want predictable savings without taking on major installation expenses.

Advantages of community solar over rooftop solar include:

No installation on your property.
No maintenance or repairs, as the project owner manages all technical responsibilities.
Access for renters, apartment dwellers, manufactured-home residents, and people with shaded roofs.
Lower upfront costs compared to purchasing a full solar array.
Ability to scale participation, with subscription sizes chosen based on energy usage.
Clean energy access without long-term ownership commitments.
Predictable bill credits that lower utility expenses.

Community solar farms allow South Carolina residents and businesses to participate in clean energy regardless of homeownership status, roof condition, or available capital for installation. The model helps democratize solar participation across the state while supporting renewable-energy development.

Why Community Solar?

Many people in South Carolina choose community solar because it offers one of the most accessible, flexible, and cost-effective pathways to clean-energy participation. The model eliminates the barriers associated with rooftop solar and provides consistent energy savings without operational risks.

For homeowners, community solar avoids installation challenges such as structural reinforcements, roof aging, or concerns about weather exposure. South Carolina’s climate includes severe thunderstorms, coastal storms, and high humidity, all of which can affect rooftop installations. Community solar avoids these risks by locating solar panels off-site.

For renters, community solar is essential. Roughly one-third of South Carolina households rent, and these residents ordinarily lack access to residential solar. With a subscription to a community solar project, renters can receive bill credits and join the clean-energy transition without needing property-owner approval.

Businesses, schools, and churches often choose community solar to offset large portions of their electricity use. For example, churches or nonprofit organizations that operate on tight budgets can stabilize their energy costs through predictable community solar subscriptions. Farms and rural businesses may also benefit, as community solar can help offset utility costs associated with large equipment or agricultural operations.

Key benefits of community solar in South Carolina include:

Lower utility bills, with credits applied monthly.
Minimal financial barrier, especially for subscription models requiring no upfront payment.
Zero maintenance, since developers handle repairs, monitoring, and performance.
Environmental benefits, supporting clean energy and reducing carbon emissions.
Local job creation, particularly in construction, engineering, and site management.
Support for rural communities, where community solar farms frequently generate lease income.
Stability in energy budgeting, especially during months of high electricity use.
Flexible subscription options, allowing participants to match or adjust their energy usage.

South Carolina’s energy demand peaks during hot, humid summers, when air-conditioning use is highest. Community solar helps reduce strain on the grid during these periods by providing distributed solar generation. This local generation improves grid stability and contributes to a cleaner, more resilient energy system.

Are there Community Solar Projects in South Carolina?

Yes. Several community solar farms operate across South Carolina, supported by the state’s utilities under the framework established by Act 236. Each of the major investor-owned utilities offers community solar options, along with multiple cooperatives and municipal providers.

Some types of community solar activity in South Carolina include:

Utility-Sponsored Community Solar Farms (Dominion and Duke Energy) – Dominion Energy and Duke Energy both operate community solar farms where customers can subscribe to blocks of solar capacity and receive credits. These farms are located in various service territories across the state and serve thousands of customers who cannot or do not wish to install solar at home.
Electric Cooperative Community Solar Projects – Many rural electric cooperatives in South Carolina operate their own community solar farms. Cooperatives commonly provide shared solar access for member-owners who live in remote or rural areas where rooftop solar is expensive or impractical. These co-op community solar projects often use subscription blocks and monthly bill credits similar to utility programs.
Municipal Projects and Local Government Partnerships – Some municipal utilities and local governments sponsor community solar installations that power public buildings, water systems, libraries, or other community facilities. These projects may serve residents or simply reduce public utility expenses.
Nonprofit and Educational Shared Solar Installations – Nonprofits, schools, and faith-based organizations often partner with solar developers to build shared installations that supply power to multiple buildings. While not always structured as bill-credit community solar farms, these projects operate using similar principles of shared clean energy.
Federal and Grant-Funded Community Solar Demonstrations – South Carolina has participated in several climate-resilience and energy-assistance funding programs intended to improve community access to clean energy. Some of these federal pilot projects support shared-solar research and provide insights into how community solar can expand throughout the state.

Eligibility to join a South Carolina community solar project generally depends on the utility territory. Subscribers must be customers of the utility operating the project. Enrollment usually involves selecting subscription blocks, agreeing to program terms, and authorizing the utility to apply bill credits.

South Carolina’s existing community solar farms remain popular, and many utilities have waiting lists. Because utility programs are capacity-limited, new community solar projects are often proposed as demand grows.

How Does Community Solar Work in South Carolina?

Community solar in South Carolina follows a structured process designed by the state’s investor-owned utilities and approved by regulators. Although the specifics vary slightly across utilities, the overall steps remain consistent.

Here is how community solar works in South Carolina:

1. Project Development and Site Selection
A utility or partner developer identifies land with strong solar potential and grid proximity. The project is engineered, permitted, and constructed with high-efficiency solar panels, inverters, and monitoring equipment.

2. Interconnection to the Utility Grid
The community solar farm connects to the utility’s grid. The utility tracks the project’s total energy production and allocates proportional shares to subscribers.

3. Subscriber Enrollment
Residents, businesses, churches, and nonprofits choose the number of subscription blocks they want. Subscription sizes typically depend on the participant’s average electricity usage.

4. Monthly Production Tracking
Every month, the utility measures the output of the community solar farm. Seasonal variations in sunlight and weather influence production.

5. Application of Bill Credits
Subscribers receive credits on their utility bill based on their share of the project’s production. The bill-credit formula is determined by the utility and approved by regulators.

6. Ongoing Utility Service
Subscribers continue receiving standard grid electricity. The community solar energy is not delivered directly to their property; instead, it offsets electrical consumption through credits.

7. Maintenance and Operation
Project owners or utilities handle all maintenance, repairs, monitoring, vegetation management, and performance optimization. Subscribers never need to manage the solar equipment.

8. Potential Incentive Support
Developers may use federal tax incentives and grants to lower project costs. These financial supports help reduce subscription pricing and increase accessibility for low-income households.

South Carolina’s community solar model is designed to be simple and customer-friendly. Subscribers do not need to understand technical solar processes or manage equipment. They simply enroll and receive the benefits of clean energy through predictable bill credits.

How Much Does Community Solar Cost in South Carolina?

Community solar cost in South Carolina varies depending on the utility, subscription structure, and specific project. Utilities typically offer community solar through two primary subscription models: upfront subscription blocks and monthly subscription fees.

1. Upfront Subscription Models
Some utilities allow subscribers to purchase solar blocks for a one-time cost. These costs vary by project and utility. Subscribers then receive bill credits over time based on the energy produced by their blocks. The upfront cost covers development, equipment, installation, administration, and long-term maintenance.

2. Monthly Subscription Models
Other community solar programs use a monthly fee for participation. Subscribers pay a monthly charge based on the number of solar blocks they subscribe to. Each month, they also receive bill credits. The difference between the credit value and subscription fee determines the savings.

Community solar cost typically covers:

The development and installation of the solar farm
Solar panels, inverters, racking, and other equipment
Long-term operations and maintenance
Land leasing for the solar farm
Insurance and administrative expenses
Monitoring and performance optimization
Interconnection and project management

In South Carolina, customer savings vary across community solar programs. Savings typically fall in the range of 5% to 10% of annual electricity expenses, depending on the utility’s crediting formula and subscription pricing. Some utilities offer higher-value subscription options designed for customers seeking larger savings or larger subscription sizes.

Community solar is significantly more affordable upfront than installing residential solar. Rooftop solar often requires a major investment, while community solar subscriptions provide access to clean energy with minimal or no upfront cost. This is especially important for renters, low-income households, and residents living in older homes.

Community solar allows South Carolinians to support clean energy, reduce electricity bills, and contribute to the development of local renewable infrastructure without taking on the financial burden of a full rooftop installation. As community solar farms continue to expand across the state, more residents will gain access to flexible, affordable clean energy.