TAX CREDITS, SOLAR INCENTIVES & REBATES
Solar photovoltaics (solar panels producing electricity) promote national energy independence, high tech job creation and the reduction of carbon dioxide emissions. The state and federal governments as well as utility companies often put unique solar incentives in place to make solar more accessible for both residential and commercial scale projects.
Federal Energy Investment Tax Credit (ITC)
This federal tax credit is available to business and home-owners in all states. It is a tax credit for 30% the total cost of your system.
Regardless of whether you are a resident of North Carolina or South Carolina, you are entitled to a federal tax credit of 30%.
A taxpayer may claim a credit of 30% of qualified expenditures for a system that islocated in the United States that is owned and used as a residence by the
End Date: 12/31/2021
South Carolina Solar Energy Tax Credit
In addition to a federal tax incentive of 30%, business and home-owners in South Carolina can qualify for a tax credit of 25% of the cost of the system.
South Carolina offers a tax credit equal to 25% of the cost of eligible renewable
energy property constructed, purchased or leased by a taxpayer and placed into
service in South Carolina during the taxable year.
Note: There is a cap per year of $3,500 with 10 years to claim the entire amount.
End Date: 12/31/2020
North Carolina Solar Tax Incentives
In addition to the federal tax incentives of 30% (highlighted above), North Carolina residents are entitled to a Duke Energy rebate.
Duke Energy’s rebate program:
Starting January 1, 2018, Duke Energy has proposed the following rebates to qualifying solar installations:
Residential customers will be eligible for a rebate of $.60 per watt of solar energy installed. Non-residential customers will be eligible for $.50 per watt, while nonprofits like churches or schools will be eligible for an enhanced rebate of $.75 per watt.
Residential customers will be eligible to apply their rebate for a system size up to 10 kW, which means they could receive as much as $6,000.
Non-residential customers and nonprofit customers will be eligible for a rebate for a system size up to 100 kW, which means they could receive as much as $50,000 for non-residential customers and as much as $75,000 for nonprofit customers.
Participation under the program is on a first come, first served basis for customers who have installed solar panels and a bidirectional meter on their property on or after January 1, 2018.
After their system is installed, customers must complete and submit a solar rebate program application to the utility within 90 days.
Solar-electric systems must be placed in service on or before December 31, 2021.
The home served by the system does not have to be the taxpayer’s principal residence.
Although tax credits for solar have been extended to December 31, 2021, this could be subject to change.
Tax incentives are based on personal tax liability on each given year
Consult your tax professional to determine whether this tax credit could serve to offset your tax liability.
Modified Accelerated Cost-Recovery System (MACRS)
Business owners in all states can recover their solar investment costs through depreciation deductions. Solar electric systems are classified as five-year property under the MACRS. Learn more on DSIRE.