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.
Key takeaways
- South Carolina is a great state to install solar panels on your property.
- 30% tax credit on the total cost of solar system installation.
- 25% tax credit on total PV system costs, including installation. Maximum of $3,500 or 50% of tax liability per year. Excess credits can be carried forward for 10 years. System must be certified by an S.C. Energy Office-approved organization.
- Utilities with over 100,000 customers (excluding electric cooperatives) offer net metering. Credits for excess energy sent to the grid. Annual payout of accumulated credits at an avoided cost rate. External disconnect switch required.
- Solar Rebate Programs (Santee Cooper) offers $0.95 per watt installed, up to $5,700.
- Installation by approved contractors or NABCEP-certified professionals.
- Renewable Energy Resource Loan (Santee Cooper) provides a maximum amount of $20,000 at 6%.Payback period up to 5 years.
Save 30% of your PV system cost with Federal Solar Tax Credit
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.
Save plus 25% of the costs with State Solar Energy Tax Credit
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.
Sell excess electricity with net metering program
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.
Save up to $5,700 with solar rebate programs
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%.
What are solar incentives, and why do they exist?
Governments are really trying to encourage people to use solar power. They understand that putting solar panels on your house or business can be expensive, so they're offering money to help you pay for it. They want to make it easier for everyone to switch to solar energy.
The cost of buying and installing solar panels can be a big expense. To help with this, governments offer several ways to save money. One common way is through tax credits. This means you can take a certain amount of the money you spent on your solar panels and use it to lower the amount of taxes you owe. It's like getting a discount on your taxes. Some places even give you money back directly after you install the panels. This is like getting a cash refund.
Another way governments help is by giving you rebates. This is like getting some of your money back after you buy something. After you have your solar panels installed and working, you can apply for a rebate, and they will give you some of the money you spent back. This helps to make the overall cost of the solar panels lower.
Also, many places have programs where you can sell any extra electricity your solar panels make back to the power company. If your solar panels make more electricity than you use, the extra electricity goes back to the power company, and they pay you for it. This can help you earn money and pay for your solar panels faster.
Governments are doing this because they know that solar power is good for everyone. It helps to keep our air and water clean because it doesn't create pollution like burning coal or oil does. It also helps to create new jobs for people who make, install, and fix solar panels. And, using solar power helps us to depend less on getting energy from other countries.
For you, this means you can save a lot of money. You can get help paying for the solar panels when you first buy them. You will also pay less for your electricity every month. And, you might even make some money by selling extra electricity back to the power company. These programs help to make solar power more affordable, so you can save money and help the environment at the same time. Also, when more people use solar energy, it can help to make the power grid more stable and reliable for everyone.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in South Carolina
SHOP SOLAR PANELSYears 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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