Everything You Need to Know About SC Solar Tax Credit
Are you a South Carolina resident thinking about making the switch to solar power?
Going solar is a life-changing experience that allows you to simultaneously lower your energy bills while helping to fight climate change. Many people are turned off of solar due simply to the perceived up-front cost of solar panel installation. We’re here to help dispel the myth that solar is expensive.
In this post, we’re going to look at the SC solar tax credit. This, along with federal and municipal tax credits and rebates, can cut the cost of solar installation nearly in half. If you’ve been thinking about making the move to solar but to know it won’t bankrupt you, then keep reading and we’ll tell you how you’re going to save money.
What Is the SC Solar Tax Credit?
The SC solar tax credit is one of the most valuable solar credits in the country. When you purchase solar panels from solar installers near you, you qualify for a solar tax credit worth 25% of the cost of the panels and installation.
The maximum amount that can be paid out per year is $3,500, but you can carry excess credit forward for 10 years. As some of the top spenders on electricity bills in the US, the SC solar tax credit was put forth in an effort not just to lower carbon emissions, but to lower people’s bills.
The price of solar is dropping rapidly in SC, so it’s important to take advantage of this tax credit before it goes away.
Looking at the ITC
In addition to the SC solar tax credit, there’s a federal investment tax credit for solar installations. The federal ITC is currently worth 26% for solar panels installed between January 2006 and December 2023.
When combined with your state tax credit, you’re already looking at over 50% in tax credits on your solar panels. If you’re thinking about installing solar panels soon, it’s worth noting that due to the growth and lower cost of solar, the ITC is going down to 22% in 2023 and ending in 2024.
Other Ways to Get Money Back
Some municipalities offer further cash rebates for solar panel installation that can be worth another 10-15% of the total cost. For Santee Cooper customers in SC, you can actually earn a cash incentive for each kilowatt that you install as part of your solar panel system – up to $1,200.
In other states, there are performance-based incentives called solar renewable energy certificates (SRECs). In these places, utility companies are required by law to produce some of their energy from renewable sources. With each megawatt that your solar panels produce, you’ll earn an SREC, which you can then sell to the utility company so that they can fill their quota.
While SC currently doesn’t have an SREC program, it could be something that pops up in the future.
Breaking Even on Your Solar Panels
With the SC solar tax credit, the federal ITC, and the various other smaller rebates and incentives, the cost of solar installation goes down considerably. When you factor in the monthly savings that you’ll experience on your electricity bills, you’ll break even on your solar panels in no time.
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