There are several tax incentives and rebates offered by the state, the federal government and some utility companies that can make going solar even more affordable.
In South Carolina, the state offers a tax credit of 25% of the total cost of your solar energy system. And there’s even more good news. If the credit is more than you would pay in taxes that year, you can carry it over for up to 10 years.
There’s also a federal solar tax credit. This credit allows you to deduct 30 percent of the total cost of your solar energy system from your federal taxes. Known as the Investment Tax Credit (ITC), this credit – for now – applies to both residential and commercial systems. And there is no cap on the total credit you can receive. However, to capitalize on this tax incentive – it’s important to act quickly. In the coming years, the percentage deduction will decrease and in 2022 – it will be completely eliminated for residential homeowners.
Here’s a sample of the new schedule:
Through 2019: The tax credit remains at 30% for both residential and commercial taxpayers.
2020: The tax credit is reduced to a 26% deduction (for both residential and commercial taxpayers)
2021: The tax credit is reduced to 22% of the total cost of the system.
2022 and beyond: The tax credit only applies to commercial installations. And it amounts to a 10% deduction of the total cost of the system.
Depending on your utility company – you may be eligible for additional rebates or incentives for your new solar energy system.