Incentives

For updated information and details on incentives for solar, see www.dsireusa.org

Current Residential Tax Credits (1/1/17)

• State Tax Credit: 25% of total system cost up to $35,000. Can only take $3,500 or 50% of your tax liability per year for up to 10 years.

South Carolina Code of Laws § 12-6-3587 states that “A credit may not be allowed for a solar system unless the system is certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the State Energy Office.” Instructions for certification of solar hot water heaters and PV systems are below; for all other equipment, taxpayer should retain with tax records a copy of the manufacturer’s certification that the equipment meets federal tax credit eligibility requirements of 26 USC § 25D.

I. The Solar Rating and Certification Corporation certifies solar hot water systems. Taxpayers seeking the Solar Energy System Credit for a solar hot water system should keep a copy of their certification and receipts for equipment and installation with their tax records for documentation in case of an audit.

II. For photovoltaic systems, the State Energy Office recognizes any solar interconnection agreement between a utility and a taxpayer as a certification that the system has been reviewed by an appropriate entity. Taxpayers seeking the Solar Energy System Credit for a photovoltaic system should keep a copy of their utility interconnection agreement and receipts for equipment and installation with their tax records for documentation in case of an audit.

III. Taxpayers seeking the Solar Energy System Credit for systems which are not connected to the grid may not receive the credit unless they are able to certify to the conditions on the form at http://www.energy.sc.gov/lpage?m=701.

• Federal Tax Credit: 30% of total system cost with no cap. This is set to expire 12/31/2021.
  

Current Commercial Tax Credits (1/1/17)

• State Tax Credit: 25% of total system cost up to $35,000. Can only take $3,500 or 50% of your tax liability per year for up to 10 years.
  
• Federal MACRS depreciation (5 year property schedule).

Other incentives and resources