Incentives for Solar in South Carolina
Solar incentives are programs set up by both state and federal government and utility companies to add even more reason for homeowners, residential and commercial developers, and local businesses make the switch to solar. These incentives come in many forms and operate differently depending on the size and location of your solar system but they act on the same basic principal: saving you money quicker!
Boss Energy will help you navigate exactly which incentives you as a homeowner, developer and or business owner will be eligible for. Also, as part of our turnkey solutions we will make sure the forms get taken care of so all you have to do is flip on the lights and start saving green.
List of Current SC Solar Incentives
FEDERAL TAX INCENTIVES: (obtained from dsire.com) A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology. (EXPIRES: 12/2016, POSSIBLE EXTENSION)
STATE TAX INCENTIVE: SOLAR ENERGY TAX CREDIT: (obtained from dsire.com) taxpayers may claim a credit of 25% of the costs of purchasing and installing a solar energy system or small hydropower system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in a building owned by the taxpayer. Effective July 1, 2009, SB 1141 expanded the scope of this credit to include small hydropower systems. Only hydropower systems installed after July 1, 2009 are eligible for the tax credit. The maximum credit a taxpayer may take in any one tax year is $3,500 for each facility or 50% of the taxpayer's tax liability for that taxable year, whichever is less. Unused credit, or credit that exceeds the annual cap, may be carried forward for 10 years.
DUKE ENERGY CAROLINAS CUSTOMER SCALE REBATE PROGRAM: (obtained from dsire.com) Rebate of $1.00 per DC watt for residential customers and nonresidential customers. Rebates are limited to 40 megawatts (MW), with 30 MW for distributed systems under 2 MW and 10 MW for systems under 20 kilowatts (kW). At the customer's discretion, the rebate may be claimed by the customer or applied to companies installing or leasing systems. For each successive installation of 2 megawatts (MW) of residential solar and 6 MW of non-residential solar, Duke Energy Carolinas may review, evaluate, and propose new rebate amounts within 25% of the initial $1.00 per DC watt. Rebate modifications more than 25% of the current value must be approved by the South Carolina Public Service Commission. (EXPIRES: 12/2020)
DUKE ENERGY NET METERING: (obtained from dsire.com) Net excess generation (NEG) is credited to the customer's next bill at the utility's retail rate, and then surrendered to the utility annually at the beginning of each summer season on June 1. Net-metered customers' on-peak generation (under the TOU tariff) may be used to offset off-peak consumption, but not vice versa. Significantly, these tariffs involve additional charges that do not apply to customers who do not net meter. Duke Energy requires net-metered customers to switch to a TOU tariff (which incorporates potentially high demand charges into its fee structure) or charges customers additional monthly fees, including stand-by charges.
PALMETTO CLEAN ENERGY (PaCE) PROGRAM: (obtained from dsire.com) A green-power program designed to encourage the use of renewable energy in South Carolina, currently offers premium payments for electricity generated by customer-owned, grid-tied solar, wind, biomass, geothermal and small-scale hydropower systems. A collaborative effort among Duke Energy, Progress Energy, South Carolina Electric & Gas Company, the South Carolina Energy Office and the South Carolina Office of Regulatory Staff created PaCE in 2007, and the program was launched in April 2008. PaCE funding comes from the customers of participating utilities who voluntarily choose to support the program through an additional charge on their monthly utility bills. Of the $4, $3.50 goes to the generators and 50 cents goes to PaCE for marketing the program. The utilities collect these customer contributions and remit the funds to PaCE, a non-profit corporation, to administer the program. (EXPIRES: DEPENDENT ON PROGRAM FUNDING)
PROGRESS ENERGY NET METERING: (obtained from dsire.com) Progress Energy designed two net-metering options for its South Carolina customers. These options are available to Progress customers operating photovoltaic (PV) systems, wind turbines, biomass-fueled, or small hydro-electric systems. Any customer net excess generation (NEG) is credited to the customer's next bill at the utility's retail rate, and then surrendered to the utility (annually) on May 31. Under one net-metering option, customers must switch to a time-of-use (TOU) tariff that incorporates potentially high demand charges into its fee structure. Under the second option, customers pay an additional monthly fee to net meter. These tariffs involve additional charges that do not apply to customers who do not net meter. (EXPIRES: 12/2020)
SOUTH CAROLINA ELECTRIC AND GAS (SCE&G) NET METERING: (obtained from dsire.com) Customer net excess generation (NEG) is credited to the customer's next bill at the utility's retail rate, and then surrendered to the utility annually on June 1st. Under one net-metering option, customers must switch to a time-of-use (TOU) tariff that incorporates potentially high demand charges into its fee structure. Under the second option, customers pay an additional monthly fee to net meter. These tariffs involve additional charges that do not apply to customers who do not net meter.
SCE&G CUSTOMER SCALE SOLAR PROGRAM: (obtained from dsire.com) Residential Performance Based Incentive The performance based incentive (PBI) for residential systems under 20 kW are as follows: • 0 MW to 2.5 MW cumulative capacity: 4 cents per kilowatt hour • 2.5 MW to 5 MW cumulative capacity: 3 cents per kilowatt hour • 5 to 7 MW cumulative capacity: 2 cents per kilowatt hour • 7 to 9 MW cumulative capacity: 1 cent per kilowatt hour The PBI residential incentive is retroactively available for systems installed after January 1, 2015 for all customers who join the new Net Metering tariff. At the discretion of the customer, some incentives may be claimed by the customer or applied to companies installing or leasing systems.