South Carolina Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

South Carolina is home to waterfalls, lakes, and the Blue Ridge mountains as well as amazing beaches and coastal resorts. The Palmetto state is also filled with historical sites dating back to the Civil War and the Revolution. Using clean energy will keep the waters clear and the skies above blue. Read on to see what the state legislature has done to promote solar and other renewable power sources.

STATE LEGISLATION

In 2007, the South Carolina legislature passed Senate Bill 243, an overhaul of its omnibus renewable energy policy. It includes tax credits for solar electricity systems. The legislature also passed the South Carolina Renewable Energy Grant Program. What does it do? Well, it offers up to $200,000 to build renewable energy demonstration systems, including solar photovoltaic electricity and solar water heating systems.

NET-METERING

South Carolina has yet to develop a net-metering plan, although the Public Service Commission has set rules for the interconnection of residential systems up to 20kW and business systems up to 100kW.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

In 2007, the state legislature passed Senate Bill 243, which gives some tax credits for installing solar electricity systems. Individuals and businesses are allowed a tax credit amounting to 25% of the cost of their system, but this is capped at $3,500 (or 50% of the individual’s or business’s tax liability). 2007 also brought the South Carolina Renewable Energy Grant Program, designed to fund demonstration projects for solar electricity among other things.

Check out these other South Carolina solar rebates and incentives:

Corporate Tax Credit

* Biomass Energy Tax Credit

* Solar Energy Tax Credit - Corporate

Personal Tax Credit

* Solar Energy Tax Credit - Personal

Sales Tax Exemption

* Sales Tax Exemption for Hydrogen Fuel Cells

State Grant Program

* Renewable Energy Grant Program

State Loan Program

* ConserFund Loan Program

* Renewable Energy Revolving Loan Program

State Rebate Program

* Residential Solar Initiative for EarthCraft Homes Rebate

Utility Loan Program

* Aiken Electric Cooperative - EC Home Improvement Loan Program

* Berkeley Electric Cooperative - Energy Advance Loan Program

* Horry Electric Cooperative - EC Home Improvement Loan Program

* Palmetto Electric Cooperative - EC Home Improvement Loan

* Pee Dee Electric Cooperative - Energy Efficient Home Improvement Loan Program

* Santee Cooper - Good Cents Energy Efficiency Loan Program

* Santee Cooper - Renewable Energy Resource Loans

* Santee Electric Cooperative - EC Home Improvement Loan Program

Utility Rate Discount

* Progress Energy - Rate Discount for Energy Star Homes

* Santee Cooper - Residential Good Cents Energy Efficiency Rate Discount Program

Utility Rebate Program

* Palmetto Electric Cooperative - Buried Treasure Rebate Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

A typical 3kW solar electricity system installed in Columbia would cost around $54,000. After state and federal tax credits, the net cost could be under $50,000. South Carolina has a solar rating of Good, so with that much sun falling on your solar panels, the system should pay for itself in about 20 years. All that time, you’ll be saving over $1,000 each year on your utility bills and adding over $13,000 to the value of your home. Best of all, you know that you’re keeping tons of greenhouse gasses out of the atmosphere.

Building Type:	Residential
State & County:	SC - Richland
Utility:	South Carolina Electric & Gas
Utility Type:	Investor-Owned Utility
Assumed Average Electric Rate: Please check against your bill	$0.0979 /kWh
Assumed Average Monthly Electricity Usage: Please check against your bill	1,300 kWh/Month
Your Average Monthly Electricity Bill: (Assumed rate x average monthly usage)	$ 127 / Month
Tiered Rates Apply:	No
Time-of-Use Metering Offered:	No
Net-Metering Available:	No
ESTIMATED SYSTEM SIZE The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 4.80 kW and 7.20 kW of peak power. This estimate assumes the mid-point of this range.
Solar Rating:	Good (4.988 kWh/sq-m/day)
Solar System Capacity Required:	6.00 kW of peak power (DC watts)
Roof Area Needed:	600 sq-ft
ESTIMATED SYSTEM COST This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.00 kW peak power system will cost between $43,200 and $64,800. This estimate assumes the mid-point of this cost range.
Assumed Installation cost: (before rebates, incentives or tax credits).	$54,000 assuming $9 /watt
Expected South Carolina Electric & Gas Utility Rebate:	($0)
Expected SC State Rebate State incentive does not apply to this utility	($0)
SC State Tax Credit/Deduction (25% of net system cost - Maximum of $3500)	($3,500)
Federal Tax Credit: (Installation type: Residential)	($2,000)
Income Tax on Tax Credit:	$980
YOUR ESTIMATED NET COST:	$49,480
Monthly Payment (6.5% apr, 30 years):	$313
SAVINGS & BENEFITS
Increase in Property Value:	$13,300
Exempt from Property Tax:	No
Accelerated (5 yr) Depreciation: (Installation type: Residential )	No
First-year Utility Savings: Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher!	$665
Average Monthly Utility Savings: (over 25-year expected life of system)	$93
Average Annual Utility Savings: (over 25-year expected life of system)	$1,116
25-year Utility Savings:	$27,904
Return on Investment (ROI): (with Solar System ave. cost set as asset value)	142%
Return on Investment (ROI): (with Property appreciation set as asset value)	528%
Years to Break even: (Includes property value appreciation)	19 years
Years to Break even: (Assuming no property value appreciation)	27 years
Greenhouse Gas (CO2) Saved: over 25-year system life	160.0 tons (320,000 auto miles)

CONSENSUS

The South Carolina legislature has taken some important, though small steps toward developing renewable energies in general and solar power in particular. Offering tax credits for the installation of solar panels and giving grants for demonstration initiatives should help get the ball rolling for the state’s renewable energy market, but much more needs to be done.

Click here to have multiple solar installers bid to upgrade your South Carolina home or business.