When we recently installed a solar panel system for two North Charleston, SC homeowners, they were clear they wanted the installation to be completed by the end of the year, and we can’t blame them for the rush. If you’ve been on the fence about going solar or are putting it off for “one day”, know that huge financial benefits to switch to solar energy use may be passing you by.
You may already know that using solar energy use will reduce your electricity bills drastically. You may know that the use of these rooftop panels is a sustainable, eco-friendly alternative to traditional electricity use. You may even know that homeowners can qualify for zero-down loans to finance their solar systems. But, did you know that by starting sooner rather than later you can take advantage of the nearly 55% combined federal and South Carolina state tax credits?
South Carolina Solar Tax Credits
While there are many reasons to switch to a more sustainable practice of energy use, South Carolinians can take advantage of a pretty hefty incentive. In addition to utility rebates, SC offers homeowners a very generous 25% tax credit toward the total cost of their solar panel installation. There is no expiration date for this tax, and you also have options for how this credit can be paid out, either as:
- 50% of the taxpayer’s South Carolina state tax liability, or
- $3,500 per year, whichever is less (for up to 10 years)
Federal Solar Tax Incentives
The state credit isn’t all you can take advantage of—there’s also a federal incentive. For taxpaying homeowners, you can claim a credit of 30% of qualified expenditures for a home solar system. These expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. The maximum allowable credit, equipment requirements, and other details vary by technology. See credit details below to see why timing is of note when installing your system.
- 30% for systems placed in service by December 31st, 2019
- 26% for systems placed in service after December 31st, 2019 and before January 1st, 2021.
- 22% for systems placed in service after December 31st, 2010 and before January 1st, 2022.
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1st, 2006 and on or before December 31st, 2021.
- The home served by the system does not have to be the taxpayer’s principal residence.
- 80% of the appraised value of the solar photovoltaic system is exempted from property tax.
Read more about the federal tax incentive here.
Why Yes Solar?
Our team at Yes Solar Solutions prioritizes customer experience and results. Our experts are not only able to assess what type of system best suits your roof’s size and shape, but what system will gain you the maximum financial return as well. For this North Charleston, SC homeowner, we installed 18 280-watt solar panels and a SolarEdge inverter with 18 optimizers and monitoring to build a 5.04-kilowatt solar array on the front of their home.
While Yes Solar is able to install panel systems quickly, permitting can require some time. We were able to get this homeowner’s system up and running before the year’s end, and we encourage others to act as quickly to take advantage of the state and federal financial gains for solar energy use.