Lower Cost of Solar Panels in South Carolina: Solar Incentives, Tax Credits

In fact, you don’t have to shoulder all the installation costs by yourself (which can mean a fortune).

The cost of solar panels in South Carolina is way lower than you would expect, and it is all thanks to the South Carolina solar incentives that can be used by anyone for the next few years.¹

Solar Power in South Carolina: Daily Peak Sunlight Hours

Perhaps you are aware of the fact that South Carolina is a leading tourist destination.

It brags of luxurious summer spots where people from all over the country and basically the world flock to soak in the sun; this is great news for the solar market, obviously.

How? Simple.

It is one of the sunniest states, and nothing makes solar power more attractive than sunny locations.

Not only is the sun the main powering method for solar panels, but it also means that the residents need a lot of electricity to cool their homes.

What better way to go than to save money by installing solar panels?

There are a number of sunny days in a year in South Carolina, 216 to be precise, and it is one of the most lucrative solar markets in the country.

The cities of Charleston, Greer, and Columbia enjoy 211, 221, and 218 sunny days respectively, which means that the rest of the cities have right about the same rate of sunny days.

The solar market is doing just fine in the region as the state ranks number 14 with over 260,000 homes with fully functioning solar panels installed, which is not bad in comparison to other states.

You may ask, but what makes the solar market boom in South Carolina? There are plenty of factors. For one, it is the third highest spender on utilities in the country, which is obvious given the high heat levels.

Number 2, there are lucrative incentives from both the national and the local government, which only further explains why there has been a whole 36% price drop in solar over the previous half-decade.⁶

How Much Are Solar Panels in South Carolina? Cost of Solar Panels in South Carolina

South Carolina is by far a huge spender on utility bills,⁷ and it is expected that you would want to find a way to reduce that cost for your household.

Imagine if you could reduce your electric bill, no, completely offset it. How much money would you be able to save and set aside for other household needs?

It is a totally new perspective, but first, you have to consider the upfront cost. Truthfully, the cost of solar panels in South Carolina can be as low as $12,000 or go as high as $18,000.

It may seem like a hefty amount for a homeowner, but before you panic, get this, you don’t have to pay for the entire amount.

The solar rebates from the government and the state are enough to offset most of the cost, and this is exclusive of incentives from local companies. It doesn’t seem so bad when you put it more in perspective, and you may actually find it all cheaper than you thought.

Factors Affecting Costs of Solar South Carolina

The solar market is quite an interesting one, and you may wonder what are the driving factors of the cost of solar panels in South Carolina. It may cost you more or less than the figures stipulated above, but it all depends on the following factors.

The Size of the Solar Panels and the Entire System

This is probably one of the main reasons why you would end up spending more on your system than your neighbor.

The bad news is that your state has some of the sunniest days and highest temperatures, and there are high chances that you may have to go for a larger system.

While others in most states find the 5 or 6kW panels well sufficient, many South Carolinians have to go for systems are huge as 11kW, which of course, means more expenses.

Related Reading: Size of Standard Solar Panel: Solar Sizing Calculator Finds How Many

The Type of Equipment

Another crucial factor that comes to play is the type of equipment that you settle for.

If you are on a budget, you can go for cheaper equipment, but sadly, that may not be a great decision. The more effective versions that last longer tend to be more expensive, obviously.

And besides, you know that South Carolina can be affected by weather interferences like hurricanes and storms, which means that your equipment must be the best of the bunch, and while at it, you may also need a battery for backup in case of anything (which means that you will have to spend more).⁸

The Solar Installer

Many new buyers fail to understand that the most important decision when it comes to anything solar installation is the service provider. There are a number of solar companies out there, no doubt, but their products and services are not the same.

Here, you will have to do your due diligence, find recommendations from friends and family and go for reputable brands, not cheap, but high-quality products.

How Does the Cost of Solar Panels in South Carolina Compare to the National Average?

One of the most significant benefits of residential solar power is that it helps you reduce your electricity usage costs and is probably one of the main reasons why you would think of it in the first place.⁹

On average, a typical household in America uses 893kWh of power every month, but in a shocking turn of events, South Carolinians need as much as 1,081kWh monthly.³

What does this tell you? That the state is in dire need of alternative power sources; if not, the utility costs will keep going higher and higher.

Unfortunately, this trickles down to the cost of solar panels because the needs are in tandem with the solar system sizes, which means that the average resident will likely pay a lot more to serve the household’s energy needs.

It is no wonder that the cost is relatively higher than the national average of $23,940, that is if you minus the South Carolina solar incentives.

But still, since the programs are already in place, it implies that in the long run, it will cost you less to install panels in your state than in most other parts of the country.

How Does Solar Panel Cost Calculator South Carolina Work?

It is surprising how the cost of solar panels is never the same for everyone. There exist so many determinant factors that eventually lead to the quoted price by your solar provider, and there are very slim, if not nil, chances that you will spend the same amount as your neighbor.

Here is where the cost calculators come in. Each system is specifically tailored to suit all your individual and specific needs.¹⁰

The online software help estimates just how much you will likely spend on the entire process, that is, after factoring in your personal details.

The system will ask for your location in South Carolina, how much your house, in particular, usually spends on electricity, and probably how much you should expect to save on the electricity cost.

It is undoubtedly a handy tool that should get you started on solar installation, and it is great that the rough estimates protect you from being ripped off by unscrupulous solar companies.

South Carolina Solar Incentives

There is a reason why the cost of panels in South Carolina is low than in comparison to other states.

What do the residents have to thank for this? It is all thanks to the South Carolina solar incentives that exist.

Here is a closer look at the available programs and what they mean to your solar installation journey.

Federal Solar Investment Tax Credit

You must have heard about this by now. The ITC is available for virtually all Americans, specifically all taxpaying citizens of the country.

How does it work again?

Simple. You see, instead of paying all the taxes that you owe the government, you get a discount.

It is not just any discount, but 30% of your total solar installation cost. Until 2032, this bill will be in force, and all the taxpayers in the country are urged to take it on to reduce the burden of the hefty solar costs.

South Carolina Solar Energy Tax Credit

The reason why we call South Carolinians lucky is due to the fact that very few states offer statewide solar incentives. You should be very proud that this South Carolina solar bill passed,¹¹ and you can imagine what it means when you combine it with the federal solar tax credit, much much more money saved.

Not only that, experts claim that it is one of the most lucrative tax credits from a state in the country. What are the numbers, a whopping 25% of the solar installation cost?²

Who wouldn’t jump at the thought of reducing that much of their investment? Thanks to this incentive, the residents could save as much as $3,500.

It also goes without saying that combining this with the ITC is a game changer for South Carolina’s solar market.

Net Metering

One of the advantages of solar power is that it often tends to be in excess. And you may wonder, what happens to the extra power that you don’t use?

The answer is net metering.¹² It is a clever incentive where you can connect to your nearest grid and obtain credits in exchange.

This is welcome news because using electricity from the grid you supply to becomes very affordable, and you get to put the surplus to great use.

However, it is important to note that you don’t always have to link to the grid; it is optional. Instead, you can entirely rely on your panels for power and save the excess in batteries for use at night and when the sun’s rays are not that strong, in case you are wondering how do solar panels work on cloudy days.

Santee Cooper Solar Rebate Program

As if the above South Carolina solar incentives are not enough, those living in the Santee Cooper region can also boast of additional rebates. It is an attractive program that sees you earning rebates of around $0.95 on every wattage of solar power.

This program can fetch you as much as $5,700, and the great news is that it applies to residential buildings and commercial properties. You can check the manual to confirm whether you are eligible or not.

Berkeley Electric Cooperative Energy Efficiency Program

You may be looking deeper into incentives and rebates, forgetting that solar loans can also be of great help. This loan program lets you borrow as much as $15,000 to install solar power, and the great news is that you have a repayment term of 5-7 years, which is quite a fantastic deal considering that you will fully own the system by the end of it all.

The interest rate is also not extreme, at only 4-10%. Before you decide that it may not be a great deal, remember that tax credits require that you pay for the entire solar upfront before the credit applies to your tax liability.

Such a loan will be a dream if you are struggling with raising all the money that is required for the installation.

USDA REAP Program

The country’s Department of Agriculture is not left out when it comes to investing in solar power. The REAP (Rural Energy for America Program) grants and loans are a dream come true for those in the agricultural sector, particularly those in rural kind of settings.¹³

It can give agricultural producers a massive bump in their efforts to entirely convert to renewable energy.

South Carolina Solar Incentives: How Does the South Carolina Solar Tax Credit Work?

One of the best and highly sought-after South Carolina solar incentives is the statewide solar credit. It follows in the footsteps of the federal tax credit and has the same guidelines, which have so far proven to improve the conversion rates to renewable energy.

Now, besides the state’s 30% tax credit, South Carolinians can enjoy an attractive 25%, which is a pretty huge number if you consider it, especially when the two tax credits are combined together.

But how does it all work?

If you are a resident with your own home or run a business that has recently switched to solar power, you can receive a 25% cash relief from your state the next time you are filing your taxes. It is a huge leg up for all state residents, but there are eligibility criteria and guidelines to follow.

The ceiling when it comes to the incentive is $35,000 or 50% of the money that a taxpayer owes or half of the tax liability, in other words, whatever amount is lower.

This applies to a particular taxable year, which should be the same time that you get the solar panels installed.

In addition to that, also note that the South Carolina state tax credit bill outlines that the maximum amount that will reflect on your tax credit every year is $3,500.

This credit doesn’t possibly have an expiration date, but any extra credit on top of the $3,500 will carry over to the next year and will continue to do so for up to around 10 years.⁵

South Carolina Solar Incentives: How Does the Federal Solar Tax Credit Work?

It is now time to take a closer look at the most lucrative solar incentive in South Carolina, probably the one that everyone is scrambling to take advantage of, the federal energy credits.

You must have heard about it and probably cannot wait to apply for it, but first and foremost, you need to know how it all works.

You don’t want to make a mistake and lose out on its perks. It can be quite complex to grasp, especially when seeking it for the first time.

It is no wonder that some residents opt for an easier way out, employing the services of tax experts. If you thought that the state solar tax credits were enticing, you would probably look at what the state is willing to offer you, a whole 30% off on your taxes.

As attractive as it sounds, you need a deeper understanding of it first before you sign up for anything.

First, it is crucial to know that the Investment Tax Credit is not a cashback program where you get a cheque worth 30% of what you spent on the installation.¹⁴

It is way different than that. What happens is that the government relieves you of the amount in your next tax payment.

This credit solely and specifically applies to all taxpaying citizens.

Also, remember that it is not a loan program. The government expects you to bear the full cost of the installation and only later apply for the tax credit.

This means that you should be able to afford the project in full first before being eligible to receive the incentive.

If it is beyond your budget, you may have to get additional financing, after all, like a loan.

You may ask how does the solar tax credit work if I don’t owe taxes?

It is very simple, it doesn’t. The design of the program is that the amount reflects as a tax credit, which obviously cannot happen if you don’t have a tax liability or, in simpler terms if you don’t owe the government any money.

How To Pay for Solar Panels South Carolina

Buying and installing solar panels is quite an investment, and you obviously want to make sure that you get it right in all matters of financing options.

It is a huge deal because with tax credits from the state and the government, you have to pay the full amount and only later apply for the exemption.

This goes to show that you actually need to pay for the full amount in one way or another. Below are some of these ways.

1. Cash Upfront: Of course, the list kicks off with the most convenient and straightforward method. If you have cash in your account, you can always pay for it to avoid any unprecedented delays caused by other payment methods.
2. Solar Loan: This is the second thing that comes to mind when you are thinking of solar installation, especially when you are on a tight budget. The great news is that banks and other financiers have carefully-designed loans, which are perfect for solar power acquisition, and there are a whole lot of deals in store for you.
3. Solar Leases: In comparison to loans, solar leases are agreements by solar companies, letting you lease the system, not retain the ownership, which can have a fair share of challenges. Even though it is a viable way to convert to renewable energy and pay less for the power you receive, not owning the property is a bummer.
   And in addition to that, such agreements completely cut you out of being eligible for tax credits.

How Much Can You Save in South Carolina Considering the Solar Panel Installation Cost?

In regard to the electricity costs in South Carolina, the levels are expected to skyrocket. The energy needs of the residents keep increasing day by day, which explains why more and more are opting out and are instead financing rooftop solar systems in a bid to avoid the humongous utility bills.¹⁵

But as any keen homeowner, you want to be sure that this is all worth it in terms of how much you will be saving down the line.

Well, you know that South Carolina is the 4th heaviest spender on utility. By converting to alternative power, you may end up saving as much as $1,500 a year, and let’s do the math.

Summing up all these savings all through the year, you will be stunned that you will have paid off the installation cost in slightly over 10 years, depending on your energy costs and the price of the installation.

Still, on the math, remember how long do solar panels last? You can imagine that the panels can pay off in 10-13 years, meaning that the remaining time will be you enjoying electricity absolutely free and smacking all those savings.

It will even be more worth it if the electricity rate goes up, which we are sure it will in relation to the trends over the last half-decade.

Solar Panel Installation Factors To Consider

Considering the cost of solar panels in South Carolina, it makes sense that you want to carefully take everything into account. It is a huge, life-changing investment, and if you want to make the project a success, you want to account for some factors.

Perhaps the most important question is, are you a renter or homeowner it is all easier when you are the homeowner.

You won’t have to check with the landlord to see whether you will be violating any rules. Besides, the rules are a bit different for rented properties when it comes to South Carolina solar incentives because the guidelines are that you should be the homeowner to be eligible.

Secondly, many homeowners ignore this, but the state of your roof actually matters. These are panels that will stay put for over two decades, which means that the roof must be strong and durable (not old and needing repairs) to bear their weight and should have an excellent slope (25-40 degree angle) to fully capture the sun’s rays and work more efficiently.⁴

What Are the Benefits of Going Solar in South Carolina?

Going solar has plenty of advantages to you as a homeowner, and to the community, and in the long haul, it is also of benefit to the entire country.

Here is why you need to convert to renewable energy.

You Will Have Energy Independence

There’s nothing as important as having a power source that doesn’t rely on the grid.

What does this mean? You are safe from outages and weather interference, and you will have a battery system in case of anything.

You are not subject to utility rates that are only going to go up in the future.

You Will Save a Fortune on Energy Costs

Probably one of the main reasons why South Carolinians go for alternative power sources. Their energy needs are too high, and they end up spending a lot of money on monthly utilities.

Solar power in South Carolina comes in handy to reduce or offset these costs, and it helps that it pays off in a decade or so.¹⁶

The Environment Will Thank You

Look at it this way, when more residents are opting out of the grid power, the demand goes down, and so does the supply. The mining sites then gradually slow down their operations which is a win for the environment.

Also, you don’t have to worry about what happens to old solar panels because various recycling companies work throughout the state to help safely dispose of used panels. Solar companies also have recycling programs and you can check whether your installer does the same.

Luckily the carbon footprint solar panels are low all through their lifespan, and you cannot compare with that of non-renewable energies.

Your Home Value Will Increase

If you are wondering how does solar increase home value, it is all thanks to the booming solar market. Panels are getting more and more popular, and home buyers are finding clean-energy homes very attractive.

Their demand increases, and so does their value, and the rate can go as high up as 4.1%.

How To Get the Best Prices for Solar Panels for Home in South Carolina

As you already know by now, solar panel prices can be hefty, and this is particularly true for South Carolinians due to their heavy energy needs.

If you are on a budget and want to save as much money as possible, you should have some tricks up your sleeve.

For starters, you are safer getting multiple quotes from various solar companies in your area, why? For comparison purposes.

The quotations will be different and will give you an easier time selecting your installer. Another effective way to get the best price is to get fully invested in the South Carolina solar incentives.

Imagine getting 30% plus 25% off of your installation cost; what does that say, that you can save more than half of the cost, a deal that you cannot possibly pass up?

Related Reading: Why Are Solar Panels So Expensive? Solar Panels for Home (Cost vs Install)

How To Choose the Best Solar Company in South Carolina

There are several companies that have set bases in South Carolina over the last 15 years, obviously to take advantage of the booming solar market.

As a prospective buyer, you may be spoilt for choice and overwhelmed, not knowing what to go for, and it is expected. So what do you do to make sure that you end up choosing the right person for the job?

It is simple, let the brand’s reputation speak for itself. You can ask your neighbors and friends about who did their installations and how it was.

This will give you an analysis of what to expect based on already completed projects.

Secondly, when you have narrowed down your top options, you can then obtain their quotes and do your own comparison.

Also, if you are skeptical about anyone, you can check for licenses, warranty on the products, and the BBB listing.⁵ This way, you don’t take any chances, and you can personally make sure that the job will be done perfectly.

What Is the Trend of the Cost of Solar Panels in South Carolina?

South Carolina is currently at number 14 in matters of solar panel installations in the country, having already set up more than 2,000 MW.

If you are worried about how much solar power will panels produce in South Carolina, just know that the numbers are looking good at the moment. This is all thanks to the local government’s efforts to make the state adopt more clean energy.

Experts say that other states will likely surpass it in terms of ranking, but still, it is at a pretty good place currently. The higher the utility rate goes up, the more the residents will seek out other alternatives, besides, the tax credits are already working to encourage more people to convert to renewable energy.

South Carolina Solar Incentives: Who Qualifies?

Your eligibility for any of the incentives depends on the particular program because, obviously, each has its set of rules. For instance, you can only qualify for the federal and state tax credit if you are a taxpaying citizen and have a tax liability.

However, if going for other local rebate programs, you will have to follow the eligibility criteria in accordance with their manual and laid-out rules.

Do Free Solar Panels South Carolina Exist?

If you are wondering how to get solar panels for free, know that it is not as simple as it seems.

Unless you get a grant from REAP, there is no way that you will get solar panels for free in South Carolina or any other state, for that matter.

What you may hear being advertised as free solar panels are actually solar leases that you have to pay for at the end of the month, kind of like renting the panels or switching to a solar utility provider.

Is the Cost of Solar Panels in SC Worth It?

Are solar panels worth it in South Carolina? That is the question any prospective buyer would ask before making such a crucial decision.

Given that the residents’ energy needs are high, it is only wise for them to find alternative power sources.

Therefore, by installing solar power, not only do you get to save a lot of money on utility bills, but you will also be using clean energy, which is safe for the planet.

As long as the electricity rate is going up, the panel costs are going down, and the solar incentives are increasing, turning to solar energy is becoming the last resort and the better option for many.

You are lucky to live in South Carolina, not because it is a top luxury spot but because of what the solar market has to offer, in particular, the solar tax incentives from the state.

There are very few states in the US with statewide incentives, and South Carolina has some of the best incentives at a whopping 25% of the installation cost.

The reason why you will find solar costs lower is because of one fact, there is a nationwide tax incentive rated at 30% of the cost, which means that adding the two incentives will significantly lower the total installation cost. There is no better time to take advantage of that than now.

The tax incentives together with other local rebate programs, make the switch all the more enticing and exciting.

The South Carolina solar incentives have been instrumental in lowering the cost of solar panels in South Carolina by a whole lot, and it has made it easier for the residents to adopt solar power; if you were waiting for the right time to take the leap, the time is now.

Frequently Asked Questions About South Carolina Solar Incentives