Solar is a great choice for sunny South Carolina, and solar incentives in South Carolina make it way better. What are they like and how can you get them? Read our article.
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
South Carolina has its own tax credit! This program allows you to claim 25% of the total costs of a PV system, including the installation. You can claim up to $3,500 or 50% of your tax liability in any given year (the lesser of the two). If the credit exceeds these limits, you can claim the rest in the following 10 years. The State Solar Energy Tax Credit is compatible with all other credits and incentives. It means that, together with the federal 30% ITC, you can recover more than half of the system’s cost! Before applying, make sure your system is certified by an S.C. Energy Office-approved organization.
With a single exception – electric cooperatives, solar laws in South Carolina oblige all utilities with more than 100,000 customers to offer net metering. It allows residential solar owners to put the excess electricity into the utility grid instead of storing it with batteries. When you sell your solar power to the grid, you receive kWh credits that can be used to offset your next bills. Once a year utilities may pay out the accumulated credits (if there are any), but at an avoided cost rate, which is lower than the retail rate. When planning, keep in mind that an external disconnect switch is required by state law.
The largest state-owned utility, Santee Cooper, offers a generous rebate program. The company will pay $0.95 per every watt of the installed capacity, but no more than $5,700. To qualify for the program, your system must be installed by one of the approved contractors or a NABCEP-certified professional.
10.82%
average personal loan interest rate in 2023
On top of this rebate, the utility can finance your transition to clean energy. Renewable Energy Resource Loan has a payback period of up to 5 years with a maximum amount limited to $20,000. The loan rate is 6%.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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