Renewable Energy and Energy Storage Property Tax Exemption

If you install a renewable energy system of 20 kW-AC or less in South Carolina, such as rooftop solar, the system is exempt from property tax. The exemption also covers components that improve performance, like an advanced inverter or battery storage, plus equipment needed to meet safety and interconnection standards. Contact your county assessor or the state agency that administers property tax for how to claim it.

You can tell South Carolina customers that renewable systems rated at 20 kW-AC or less, including solar PV and paired battery storage, are exempt from property tax, which lowers their long-term ownership cost. The exemption extends to advanced inverters, storage devices, and equipment required to meet safety, performance, interconnection, and reliability standards, so design systems to meet applicable codes such as the National Electrical Code, IEEE and UL standards, and local requirements. Systems above 20 kW-AC do not qualify, so size projects accordingly.

Established by H.B. 3354 of 2021, this is a property tax exemption, not a rebate or grant, so it reduces local tax revenue rather than drawing on a funded program budget. It applies to renewable energy systems of no more than 20 kW-AC, covering the generating equipment, enhancing components such as advanced inverters and battery storage, and equipment needed to meet applicable safety, interconnection, and reliability standards. Eligible sectors include residential, low-income residential, commercial, and industrial, and eligible technologies include solar PV, biomass, tidal, wave, small wind, small hydro, and fuel cells using renewable fuels.