Beyond the environmental benefits and potential electric bill savings that solar panels represent, your solar investment could lead to some tax benefits. Many states have solar incentives available to homeowners who are trying to live a greener life, and South Carolina is no exception. In fact, the Palmetto State has some of the best solar incentives in the country. So if you’re considering adding solar in South Carolina, here’s what you should know about the benefits your state might have in store for you.
South Carolina Solar Energy Tax Credit
South Carolina offers a state tax credit for solar energy, which means that residents can claim up to 25% of the solar system costs as a tax credit. And, in the event that you don’t pay enough in taxes to get the full credit all at once, you can roll it over for up to 10 years!
Net metering is the process of selling back any extra energy generated by your solar panel system to your utility company in exchange for credit on your next electric bill. This means that any time the grid fills the electricity demand gaps in your home, either at night or at times when your solar panels are not producing at peak capacity, you can still benefit from solar energy that you produced by drawing from any accumulated credits. You can look into your utility company’s policy to get more information on whether they offer net metering!
The Federal Solar Tax Credit
Beyond the South Carolina-specific benefits, as of now, you can claim the federal Investment Tax Credit when you purchase your solar panel system either through a cash purchase or a solar loan. This program is designed to offer up to 26% of your installation costs back to you via a credit on your taxes. Keep in mind that this amount will fall to 22% in 2023 and expire at the end of that year, so now is a good time to consider adding solar to ensure that you get all of the possible incentives and credits available to homeowners.
Add Solar To Your South Carolina Home And Get Rewarded
At Pink Energy, our solar experts are well-versed in the benefits and incentives associated with installing a solar panel system. If you’re wondering how you can get the highest possible return on your solar investment, contact our team today! We’d love to walk you through all of the reasons solar panel systems could work for you.