When a homeowner installs solar panels, they become eligible for as much as a 26% return via a tax credit. Because the government wants to encourage people to increase their eco-responsibility, they offer to help bring down the initial cost of installing residential solar panels.
In 2020, Congress extended the ITC, which allows homeowners a 26% tax credit for solar panel systems installed between 2020-2022. For tax year 2023, the tax incentive is 22%. The tax credit is set to expire in 2024, so it's important to take advantage before expiration.
The federal tax credit can be claimed on a homeowner's federal income taxes for a percentage of the cost of their solar photovoltaic (PV) system. The system must be placed in service during the tax year and generate electricity for a home located in the United States.
Solar Tax Credits & Incentives in South Carolina
South Carolina homeowners with sufficient tax liability can take advantage of state tax credits for the purchase and installation if their solar panel system. For a database of tax credits and incentives for solar, visit EnergySaver.SC.GOV.
Important note about tax credits: Tax credits can reduce a consumer’s tax liability, but the credits are non-refundable— meaning that they only apply if a consumer owes enough in taxes to balance the credit. Consumers will not receive a check if they do not owe taxes. Consult a tax advisor.
For additional information on the Federal & State Tax Credits, please visit:
Please consult with your accountant or tax preparer to confirm your ability to receive solar tax incentives.