30% Federal Solar Tax Credit
The US federal government offers a tax credit to both home and business owners who install solar power. A tax credit worth 30% of the total system cost and installation is available. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.
25% State (SC)
The South Carolina solar tax credit is worth 25% of the total cost including installation. The maximum incentive for the SC state tax credit is $3,500, or 50% of taxpayer’s tax liability for that taxable year, whichever is less. This credit has no expiration date and any excess credit may be carried forward up to 10 years.
The US Department of Agriculture offers grants up to $500,000 for renewable energy projects installed by small businesses or agricultural producers. For more information about the REAP Program please visit http://www.rd.usda.gov/sc.
Modified Accelerated Cost Recovery System
Qualifying solar energy equipment is eligible for a cost recovery period of five years. For equipment on which an Investment Tax Credit (ITC) or a 1603 Treasury Program grant is claimed, the owner must reduce the project’s depreciable basis by one-half the value of the 30% ITC. This means the owner is able to deduct 85 percent of his or her tax basis.
Duke Energy Rebate
$1/watt up to 1 MW
Duke Energy Carolinas (DEC) provides incentives in the form of rebates for customers installing solar photovoltaic systems. Due to increased customer interest, DEC has increased the amount of capacity for which incentives will be available. DEC’s proposal was approved by the Public Service Commission of South Carolina on June 29, 2016.