South Carolina has some fantastic incentives that make solar power more affordable. With an average of 216 sunny days each year, the state is an excellent spot for solar panels. It’s already
Switching to solar may feel like a big step, but there are many incentives to help reduce the upfront costs. You can take advantage of federal and state tax credits, plus utility rebates from providers like Santee Cooper. And if that wasn’t enough, net metering allows you to get credit for any extra energy your solar system generates, which means more savings for you.
With energy prices rising, more people are choosing solar not just to save money, but to take control of their energy future. In this post, we will break down all the key programs and show you exactly how much you could save. Going solar is not just about reducing your carbon footprint. It can also add value to your home and give you more independence when it comes to energy.
Key Takeaways
- South Carolina has excellent solar incentives that make going solar more affordable for homeowners.
- Tax credits and rebates can significantly lower the cost of solar panel installations.
- Many homeowners are seeing real savings on their energy bills and an increase in their home’s value by switching to solar.
Federal Solar Investment Tax Credit (ITC) Explained
The Federal Solar Investment Tax Credit (ITC) is one of the best ways to save money on your solar investment. It gives you a 30 percent tax credit on the total cost of installing a solar system.
To take advantage of this credit, you must own your system. Unfortunately, leased systems do not qualify.
This credit is a big win for homeowners. It directly reduces your tax bill, making it easier to manage the cost of switching to solar.
The credit is available through 2035, so there is plenty of time to take advantage of it. If your home is in South Carolina, you are eligible to benefit from this credit, making solar power even more affordable in the state.
Claiming the ITC is simple. All you need to do is complete IRS Form 5695 to apply for the tax credit on your solar investment.
By going solar, you are choosing an eco-friendly energy option that also comes with financial perks like the ITC. It is a great way to help the environment while saving money at the same time.
South Carolina Solar Tax Credit
The state offers a tax credit that covers 25% of your solar system’s cost. This means you can get up to $3,500 back every year for up to ten years.
To qualify, you just need to install solar panels at your home or business. It is important to check if your system qualifies. The credit covers more than just solar panels. It also applies to solar water heaters and even geothermal heat pumps.
A helpful feature of this credit is that if you do not use all your credits in one year, you can carry them forward. This allows any unused credits to reduce your tax bill in the coming years.
Here is an example. If your system costs $20,000, you would be eligible for a $5,000 credit. You would get $3,500 this year, with the remaining $1,500 applied to next year’s taxes.
When it is time to claim your credit, be sure to fill out South Carolina’s tax form SC TC-38. Filing it correctly helps ensure you get your well-deserved savings.
Santee Cooper Solar Rebate Program
The Santee Cooper Solar Rebate Program is a great option if you are thinking about going solar in South Carolina. It gives homeowners a great chance to save money when installing solar panels.
The program offers a rebate of 95 cents per watt for your solar system. You can save up to $5,700 depending on the size of your system. This rebate can make a huge difference in lowering the upfront costs of going solar.
To qualify, you need to work with an approved contractor. The contractor must be either a Santee Cooper Solar Electric Trade Ally or a NABCEP-certified installer. This ensures that your system is installed to high-quality standards, giving you the best performance.
There are a few things to keep in mind. The rebate is available for systems that range from 1 kW to 20 kW in size. So, make sure your system fits within this range to take full advantage of the savings.
One thing that makes this program stand out is that other major utilities in South Carolina, like Duke Energy and Dominion Energy, do not offer similar rebates. This makes the Santee Cooper program one of the best options for solar savings in the state.
Net Metering in South Carolina
Net metering is a great way for solar users in South Carolina to save money on energy costs. It works by allowing the extra energy your solar panels produce to go back to the grid. In return, you earn credits that can lower your electric bill.
Since each utility has its own rules for net metering, it is a good idea to check with your provider. Companies like Dominion, Duke, and Santee Cooper often use time-of-use rates, so make sure you understand the specific terms for your system.
Different utilities may have different guidelines, so knowing the terms of your provider can help you get the most savings.
Energy credits do not carry over from one month to the next. At the end of the year, any unused credits turn into cash, usually at a lower rate, which can impact how much you save throughout the year.
To get even more savings, you might want to think about adding solar batteries to your system. These batteries store the extra energy your panels generate so you can use it later, even when the sun is not out. With batteries, you will depend less on the grid, helping you save more under South Carolina’s net metering setup.
By understanding net metering and your utility’s specific rules, you can make the most of your solar energy system. Using solar technology is an effective way to cut down on energy bills and gain more control over your energy use.
How Much Can You Save with Solar in South Carolina?
If you are thinking about installing solar panels in South Carolina, you might be surprised by how affordable it can be. The cost of a solar system usually ranges between $15,000 and $25,000 before you factor in any incentives.
The good news is that South Carolina offers some excellent ways to save with tax credits and rebates.
First, there is the federal tax credit that gives you 30% back on the total cost of your system. For example, if your solar system costs $20,000, you will save $6,000 right away.
On top of that, South Carolina also offers a state tax credit that covers up to 25% of your solar system’s cost, which can save you up to $3,500 each year.
And there is even more. With net metering, any extra power your system produces goes back to the grid, which helps to lower your electric bill even more.
Over the span of 20 to 25 years, these savings can really add up. Many homeowners find that they can reduce their electric bills by thousands of dollars.
What's even better is that the payback period might be shorter than you expect. Depending on your energy usage and system size, you could get back your investment in as little as 6 to 9 years. After that, you could enjoy nearly free electricity for many years to come.
Is Solar Worth It in South Carolina?
Going solar in South Carolina is a smart investment. With around 216 sunny days a year, your solar panels will have plenty of sunlight to power your home.
South Carolina’s state tax credit covers 25% of installation costs, reducing your upfront expenses. Once your system is up and running, your utility bills will drop, and solar can even increase your home’s value.
Solar also offers energy independence by reducing reliance on utility companies. Adding a battery can provide extra security during outages. Plus, solar helps lower your carbon footprint, making it a more eco-friendly option.
The 30% Residential Clean Energy Tax Credit and local rebates further sweeten the deal, making solar a great option to explore for your home or business in South Carolina.
Frequently Asked Questions
Do solar panels increase home value in South Carolina?
Yes, solar panels can boost your home’s value by cutting down electricity bills. Buyers who care about sustainability may be willing to pay more for homes with solar features. In South Carolina, where solar energy is becoming more popular, homes with solar often stand out and can sell for a higher price compared to homes without solar.
Can HOAs restrict solar panels in South Carolina?
The Solar Habitat Act stops HOAs from completely banning solar panels. However, they may have guidelines for where and how you can place them. It is always a good idea to check with your HOA to make sure you understand any rules they have. This way, you can enjoy solar benefits while staying within community guidelines.
How much does it cost to go solar in South Carolina?
The cost of installing solar panels in South Carolina usually ranges from $12,000 to $25,000 for a 5 to 10 kW system. Luckily, federal and state tax credits can help lower this cost, making the investment much more affordable. These incentives can also shorten your payback period, making solar a smart financial choice.
Can you get solar panels for free in South Carolina?
While solar panels are not exactly free, there are options that can make them more affordable. You can look into leasing options or Power Purchase Agreements to reduce or even eliminate upfront costs. Just remember that if you want to take advantage of tax credits, you need to own the panels. Exploring these choices can help you find the best path to solar savings.