How Does the South Carolina Tax Credit Work?
Perhaps, you have already heard about the 26% Federal Solar Tax Credit (if not, don’t worry; we shall discuss that in a while). But let’s talk about the South Carolina Solar Tax Credit first. This program returns 25% of the total installation cost of your solar system as a tax credit.
To understand this better, let’s do some quick, simple math. The average cost of installing a solar power system for the average American home is about $10,000 to $15,000. Using the higher end of this estimation means that you’ll receive an incentive totaling $3,750 (15000 x 0.25) in SC. This means that the taxes you should pay in that year will be slashed by the same amount.
What if my taxes don’t add up to that amount? Well, the South Carolina Tax Credit program allows you to carry forward your tax credit for up to 10 years. Frankly, there is a slight chance, if any at all, to have any remaining unclaimed tax credit after a decade.
What maximum amount can you receive from the incentive program? You can claim a total of $35,000 from the SC tax credit. However, the figure that can be paid each year is capped at $3,500.
What are the Eligibility Criteria for SC Solar Energy Tax Credit?
All homeowners who live in the Palmetto state are allowed to apply for this program. However, before award, you must meet the following requirements.
- The appropriate bodies must inspect the solar system. But also, an inspection done by your utility company during interconnection assessment is acceptable.
- The system must have all required building code permits, and the state building code agency must also approve final inspections of the solar system.
- The home solar power system has to have and meet all the current safety standards and requirements.
- As the owner, you must provide and hand over the necessary documentation, such as the State Certification for PV Systems document.
You don’t have to worry about how you’ll meet all these requirements. At Go Solar Power, we’ll ensure you have all the requirements and papers available when you hire us to install the solar system.
Can I Claim Both the Federal and South Carolina Solar Tax Credits?
Yes. With the Federal Solar Tax standing at 26% up to the end of 2022 (and 22% in 2023), now is the best time to pair it with the SC solar incentive to reap higher savings. Practically, you pay only 49% of the total cost of installing home solar PV in South Carolina by leveraging both.
Using the same example as above, you’ll receive a total of $3,900 (15000 x 0.26) from the federal program. Coupling with the earlier amount, this totals to $7,650. Therefore, you’ll only pay $7,350 for a $15,000 worth of solar installation. If your system is smaller, you might end up paying an amount lower than $5,000 out of pocket.
The best part about South Carolina is that it offers a net-metering program. Therefore, if you don’t want or can’t afford to include a solar battery in your initial solar installation project, you can still use the utility as a power bank by selling excess energy the panels produce back to the grid.
Are You Ready to Go Solar?
Using a solar installer with resources and experience is crucial. Go Solar Power has over a decade’s worth of experience and has completed hundreds of projects successfully. Connect with us to learn how you can save with solar.