Harness the Power of the Sun with South Carolina’s Solar Incentives and Rebates
South Carolina’s abundant sunshine makes it an ideal location for harnessing solar energy. With an average of 80.35% sunny days, the Palmetto State ranks 17th among the sunniest states in the nation. By embracing solar power, residents can significantly reduce their electricity bills, a compelling proposition given that South Carolina has the fourth-highest electric rates in the country.
Recognizing the potential of renewable energy sources, policymakers are actively exploring measures to alleviate the financial burden on property owners and promote a transition towards sustainable energy solutions like solar and wind power. To encourage solar adoption, South Carolina offers a range of incentives, rebates, tax credits, and benefits, making solar investments more attractive and accessible.
South Carolina’s Renewable Energy Initiatives
1. Renewable Portfolio Standards (RPS): While South Carolina does not have a mandatory RPS, it has implemented a voluntary Distributed Energy Resource Program. This program sets a goal of achieving 2% of collective generation capacity from distributed sources by 2021 for investor-owned utility companies like Duke Energy Carolinas. Duke Energy has already met this target and is poised to invest in sustainable energy facilities ranging from 1 megawatt (MW) to 10 MW, with an installed capacity increase equivalent to 1% of the company’s average peak demand over the preceding five years.
2. Energy Rebates: South Carolina’s solar incentives allow property owners to receive lump-sum payments or have their installers deduct the rebate from the final installation cost. Duke Energy offers an attractive $1/watt rebate on the cost of a solar energy system, while Santee Cooper has a new incentive program that provides customers with a refund of $1.30 per watt of solar energy installed on their roofs, up to $5,200.
3. Net Metering: South Carolina’s excellent net metering program allows solar panel owners to connect their systems to the public utility power grid, enabling them to sell excess power back to the grid. This offsets energy costs, as the amount of energy sold is deducted from the property owner’s monthly bill or credited towards future bills.
4. Energy Tax Credit: One of the most compelling reasons to purchase a solar panel system rather than lease is South Carolina’s energy tax credit. This incentive covers 25% of the total system cost, providing significant savings. If you don’t meet the minimum threshold to claim the credit in a given year, it can be carried over to the following fiscal year.
5. Santee Cooper Solar Rebate Program: Santee Cooper, a South Carolina utility company, offers solar incentives for its customers to install solar panels. Qualified Santee Cooper property owners can receive up to $1,200 for each kilowatt (kW) of solar power installed, with a maximum system size of 6kW.
Don’t Forget the Federal Tax Credit!
In addition to South Carolina’s solar incentives and rebates, property owners can also benefit from the Federal Investment Tax Credit. Currently, those who own a solar system can deduct 26% of its cost from their federal taxes. However, this percentage is expected to drop to 22% in 2023 and expire in 2024, so it’s crucial to explore your solar options promptly to take advantage of these lucrative incentives.
By embracing solar energy and leveraging the available incentives and rebates, South Carolinians can significantly reduce their energy costs while contributing to a more sustainable future for the state and the planet.
