Use these South Carolina solar incentives to cash in on big savings when switching your single-family home to solar panels.
Adding solar panels to your South Carolina home is a great idea. Solar power is a clean energy source can help you do your part to save the environment and save you money on your home energy costs at the same time.
Living in the Palmetto State helps you make the most out of solar energy, with the abundance of sunshine the area receives. Also, homeowners have access to great South Carolina solar incentives that can help you save significantly. These savings are on top of the amount you can expect to save on your electric bills each month.
We created this guide to show you how you can get started and offset the system and installation costs of solar panels in SC. You’ll find South Carolina solar rebates, tax credits and other SC solar incentives you can take advantage of listed below.
South Carolina Solar Tax Credit
The SC solar panel tax credit allows you to claim 25% of your solar costs, which is an amazing benefit for people who live here. This SC solar tax credit means you could claim a quarter of the purchase of your system and your installation to save yourself a significant amount of money.
The SC solar tax credit is for people who have purchased their solar energy systems outright, and it and caps at $3,500 each year. The tax credit carries over for as much as 10 years, helping when it goes beyond a person’s tax liability for the year. The total for this credit is whichever is less between $3,500 or 50%of your tax liability for the year. A point to note is that tax credits like the SC solar tax credit only work if you owe taxes, in which case the credit reduces or cancels out what you owe.
Federal Solar Tax Credit for South Carolina Residents
You can also take advantage of federal solar tax incentives as a resident of the United States. The Investment Tax Credit (ITC) helps you cut 26% from the cost of a photovoltaic (PV) solar energy system and installation.
This credit applies if you purchase your system with cash or a solar loan all at once. It’s for people who install their systems by the end of 2022, at which point the credit will be reduced to 22%. This credit can be carried over to the next year if it goes beyond your tax liability for the year. Just like the state tax credit, this credit helps if a person owes taxes.
You can save big with this incentive. If your system costs you $15,000, you get back $3,900 through this credit. This alone saves you thousands on installing solar panels in South Carolina!
South Carolina Solar Rebate Programs
You may be able to get money back from your utility through South Carolina solar rebates. Duke Energy, a major utility in the state, was offering a solar rebate program. However, this incentive program is currently closed, as it has reached its limit and fully paid the applicants for their projects. You could keep an eye out to see if Duke reopens this rebate program for new applicants.
Santee Cooper offers its residential customers a rebate of $1.05 per watt of solar energy, capping at $6,300. This is for residential solar systems up to 20 kW in size. Also, the system must be installed by specific professionals to qualify for the program.
Also, keep in mind that, regardless of where you live, you may be able to get a solar rebate directly from the manufacturer of your solar panels. Check if the manufacturer is offering any such program. Your SC solar installers may be able to help you check for and claim rebates like this.
Net Metering in South Carolina
Another way to save through your solar power is to take advantage of net metering. The state of South Carolina, fortunately, has a net metering policy. This means that homeowners can save extra electricity when their solar energy systems are producing a lot, such as during sunny months of summer. Then, they can use the credits when their systems are lacking power, such as during cloudy times.
The state made it so your utility needs to monitor your system’s level of production and consumption, and offer credit for the surplus. Duke Energy, Santee Cooper, and Dominion Energy South Carolina are some of the utilities that have net metering programs for residents of the state. The amount of the credit can vary by the utility company.
Loans and Grants Available to SC Residents
As a homeowner, you are probably wondering whether the South Carolina offers any loans or grants you could take advantage of. Unfortunately, the loans and grants that are available as South Carolina solar incentives are intended for businesses, non-profit organizations, public schools and others, not including homeowners. So this is not a solar incentive you can take advantage of in the state for your home, but you can look at the others on this list.
Also, there may be loans available through different sources. For example, the state-owned utility Santee Cooper offers loans to help with the purchase of solar PV, as well as other forms of renewable energy resources.
For additional information on going solar in South Carolina, check out our free SC Homeowner’s Guide to Solar Installation.
Interested in adding solar panels to your single-family home? We can help you take advantage of any applicable South Carolina solar incentives.