South Carolina Solar Incentives, Tax Credits & Rebates (2024 Guide)
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South Carolina offers several solar incentives, credits, and rebates to make converting to clean energy more affordable. According to EnergySage, South Carolina homeowners could spend up to $16,500 on a new solar system. Using federal and state solar incentives can drastically reduce this cost.
Our guide covers the best South Carolina solar incentives to help you save money on solar. A top solar company can also help you find and apply for these incentives.
What Are the South Carolina Solar Tax Credits and Rebates?
South Carolina incentive programs help alleviate the financial burden of installing solar power. Below are the available solar incentives, credits, and rebates for South Carolina residents.
South Carolina Solar Energy Tax Credit
South Carolina provides a state tax credit to encourage residents to go solar. You can claim 25% of your total solar system cost, or up to $ 3,500 annually for up to 10 years, as a state tax credit to reduce or eliminate your owed amount. The tax credit applies to several types of solar technology, such as solar panels, solar water heaters, and geothermal heat pumps. Any unused credit will roll over to the next tax year for up to 10 years. Residents must apply for the credit before completing their taxes.
More resources: Database of State Incentives for Renewables and Efficiency (DSIRE)
Renewable Energy and Energy Storage Property Tax Exemption
Like other home improvement upgrades, adding a solar system boosts home value. Typically, your property tax increases along with your property value. However, South Carolina offers a 100% property tax exemption for solar, so you won’t incur added taxes for your new system. This exemption includes leased and third-party solar systems. Solar systems must be 20 kW or under to qualify.
More resources: DSIRE
Santee Cooper Rooftop Solar Rebate Program
Santee Cooper customers can earn rebates for their solar panel installations. The company provides up to 95 cents per watt for solar systems, with a maximum of $5,700. Qualifying systems must fall between 1 kW and 20 kW. All installations must also be completed by a Santee Cooper Solar Electric (SE) Trade Ally or NABCEP-certified installer. We recommend checking the Trade Ally list to find a qualifying installer.
More resources: Santee Cooper website
State and Local Utility Companies
State and local utility companies offer additional credits and rebates for home energy efficiency upgrades. These upgrades could boost your solar system’s efficiency, improving energy savings. For example, Berkeley Electric Cooperative (BEC) offers several rebates for installing upgrades such as geothermal heat pumps and smart thermostats. We recommend checking the DSIRE website for an up-to-date list of areawide solar and efficiency incentives.
How Does the Federal Solar Tax Credit Work?
The federal solar investment tax credit, now called the residential renewable energy tax credit, offers up to 30% back on your solar installation costs. Homeowners receive a federal tax credit for solar purchases that applies to their owed taxes to reduce or eliminate them. This credit applies to both solar panels and stand-alone solar batteries. You must legally own your solar panels to qualify. Those who lease their systems or enter into a power purchase agreement (PPA) are disqualified.
Is Net Metering Available in South Carolina?
Net metering programs offer additional energy savings for solar customers. Under these programs, homeowners send excess energy generated by their systems to the power grid. Utility companies provide credits on your electricity bills in exchange.
South Carolina’s net-metering policy applies to all statewide electricity companies except electric cooperatives. Payout rates vary between utility companies, so we recommend checking with your utility company for full program details.
How Much Do Solar Panels Cost in South Carolina?
The average South Carolina solar energy system costs $2.86 per watt, or between $12,155 and $16,445, according to EnergySage. These prices are before applying any incentives. Total costs will depend on several factors, such as your energy needs, system size, and solar company’s pricing. We recommend requesting and comparing quotes from at least three solar companies to find the best deal.
Is Going Solar in South Carolina Worth It?
Yes, solar in South Carolina is worth the investment. The state of South Carolina offers several generous incentives to help lower costs, making it more affordable to convert to clean energy. South Carolina also has 216 sunny days annually, exceeding the national average of 206. Since solar panels work best in sunny environments, residential customers can maximize their energy cost savings by going solar. Adding high-quality solar batteries will offer backup power during outages caused by inclement weather.
Our Conclusion
South Carolina residents have several opportunities to save money on solar. Pairing state and federal tax credits will significantly reduce your initial investment, and net metering and utility company programs provide additional savings.
Request quotes from multiple providers and compare their pricing, product selection, and warranty coverage before hiring a solar installer.
FAQ About Solar Tax Incentives in South Carolina
Can you get solar panels for free in South Carolina?
No, you can’t get free solar panels in South Carolina. However, you can use federal and state solar incentives to help reduce your solar installation costs. Programs such as the state’s net metering program offer long-term solar energy savings. Although not all system costs are eliminated, these programs make going solar more affordable.
What is the SC state solar tax credit for 2024?
The South Carolina state solar tax credit allows homeowners to claim 25% of solar installation costs, or up to $3,500, as an annual tax credit for up to 10 years. This credit helps reduce your state tax liability during tax time. Any unused credit rolls over for up to 10 years.
Can an HOA ban solar panels in SC?
No, homeowners associations (HOAs) can’t ban solar panels in South Carolina. However, they can restrict their placement on your home. Check with your HOA for any guidelines on solar installations in your community.
Does South Carolina offer a sales tax exemption for solar systems?
No, South Carolina does not offer a sales tax exemption for solar systems. You will incur the state’s 6% sales tax rate on your solar panel purchase.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
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- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
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