Do you really save money with solar panels in South Carolina? The answer is yes if you apply for tax rebates and utility rebates.
If you install a solar electric system in your home in South Carolina, there are multiple tax credits and solar rebates that you may be eligible for. These come in the form of a reduction in the taxes you owe on your annual income.
You won’t owe as much on your taxes and may get a larger tax refund. In the article below, you can learn more about the incentives available to homeowners.
The Federal Solar Tax Rebate
The biggest tax credit will come from the federal government. According to the IRS website, qualified homeowners can get a 26 percent tax break if they install a solar electric system before December 31st, 2022.
This means you will get a tax credit worth 26 percent of the cost of your solar panel installation. If you choose to install the solar panels between January 1st, 2022, and December 31st, 2024, that solar panel rebate drops to 22 percent.
The Solar Rebate From the State of South Carolina
The next largest tax credit will come from the State of South Carolina. This tax credit provides you with a break on your state taxes, as opposed to your federal taxes.
South Carolina homeowners who buy and install a solar electric system before 2022 can receive a 25 percent tax credit. This credit maxes out at $3,500, meaning $3,500 is the most you can reduce your taxable income by for the year you install solar panels. You can learn more about tax rebates by visiting this information page provided by Blue Raven Solar.
There is one important requirement that homeowners must pay attention to in order to receive both the state and federal tax rebates. You cannot lease your solar panels from a solar electric company; you have to actually buy them yourself.
The tax rebates go to whoever owns the solar panels. If the solar panel company still owns the panels and simply leases them out to you, the homeowner, the company will actually get the tax rebate instead.
Solar Rebates From Utility Providers
Between both the state and federal tax credits, you can receive rebates of up to 50 percent off your solar panels in tax credits alone. However, there is another way to save money on solar panels and this one doesn’t involve either the state or federal government.
Certain utility companies provide rebates to customers who choose to install solar panels. Duke Energy, for example, has an incentive program that runs through 2022. You can type, “Duke Energy rebate South Carolina” into Google to learn more. The 2021 version of the Duke Energy South Carolina solar rebate program is full right now, but the program will open back up in 2022 for eligible participants.
You Can Start Saving With Solar Today
In addition to the solar rebates and tax breaks mentioned above, solar panels will save you money each month on your electricity bill. To learn more about more ways to save money as a homeowner, stay up to date with all the latest articles by MyZeo.com