Nationwide, state energy requirements have been instrumental to the development of clean energy. Perhaps the most crucial solar policy in South Carolina is the 2014 Distributed Energy Resource Program, which set a renewable portfolio standard (RPS) and paved the way for net metering to begin in 2015. Incidentally, South Carolina similarly modeled this program to the NC GreenPower program in North Carolina, which has achieved considerable success during its lifespan. The goal of this initiative is to encourage the use of renewable energy by offering premium payments for electricity generated by customer-owned systems like solar panels. Soon after, policymakers added more financial incentive investing in solar by implementing the Palmetto Clean Energy (PaCE) Program in 2008. However, the Tax Credit was a great place to start: the policy grants a 25 percent tax credit for the purchase and installation of a solar system. South Carolina got started with solar policy in 2006, with a Solar Energy Tax Credit, nearly three decades later than the first solar policies enacted elsewhere in the country.
Considering the solar success of their neighbor North Carolina, it’s easy to imagine the potential growth South Carolina has to offer. As of 2018, though, SEIA reports that the state ranks 18th in the nation in installed solar electric capacity with a total of over 660 megawatts (MW). Prior to 2016, the state saw very little solar development. History of solar policy in South Carolinaĭespite its sunny climate, the Palmetto state is just starting to capture the benefits of their abundant solar resource. To learn more about South Carolina’s best financial incentives for solar, check out our complete overview of the state’s best solar incentives. South Carolina also has several utility solar power incentives through Duke Energy Progress, Santee Cooper, and South Carolina Electric and Gas. Of note are solar energy tax credits and net metering programs. The federal ITC is eliminated for residential solar installations after 2023, but commercial solar energy system owners can still deduct 10 percent of a commercial solar system cost from their taxes beyond 2023.īesides the federal ITC, South Carolina has additional incentives for going solar that are dependent on your area and utility company. This advantageous incentive lasts until the end of 2022 - the tax credit amount steps down to 22 percent for 2023. For example, a solar energy system installation that costs $15,000 out of pocket will qualify for a tax deduction of $3,900. This solar incentive allows you to deduct 26 percent of the total system cost from your federal taxes. The federal Investment Tax Credit has been one of the most reliable and impactful incentives for solar across the U.S.
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