In South Carolina, the sweet tea is made just right, a heated backyard pool is coveted, and air conditioning in the summer is a must. With all the energy used, switching to solar panels allows you to save money on all those expenditures. South Carolina solar panels are easy to rent and own, but which is better? Owning them yourself!
However, when it comes to going solar, every state is different. States have different prices, incentives and benefits for going solar. In this blog, we’ll focus on how South Carolina Solar matches up with the national averages.
South Carolina Solar Incentives
According to DSIRE, South Carolina has 41 solar policies and incentives. These programs include:
- Low interest loans
- Tax incentives
- Utility incentives
These policies and incentives were put in place to appeal and encourage citizens to take advantage of renewable energy resources. These solar incentives are available for residential, private businesses, public and non-profit organizations.
South Carolina began promoting effective energy standards back in 2007. By 2008, the state then began adding legislation to develop energy conservation plans. Their conservation goal was a 20% reduction in public building’s energy use by 2020, compared to the data from 2000.
If you’re new to the term net metering, no worries! So what is net metering? Net metering allows you to collect energy during the hottest and brightest parts of the day. Then, the excess energy you generate goes to the utility company. The utility company then pays you for it at the rate for electricity in your area.
South Carolina is one of the 38 states that offers net metering. Their policy requires the utility companies to provide net metering at full retail price.
South Carolina Solar Benefits: Why You Should Buy
Investing in solar panels can provide you with a huge return on your investment in South Carolina. Between timely government tax incentives and affordable finance programs, it’s easier than ever to invest in your own solar panels.
The most prominent monetary benefit of solar power is that it can end your payments to your energy company. If you own your home, why are you renting your power? It must be mentioned that all power you generate yourself through your solar panels is the power that you don’t have to purchase from the utility company.
The next benefit is that when you install solar panels in South Carolina, you are eligible to receive a one-time 22% tax credit. You can elect to receive this benefit in a number of ways; either as this 22% credit with no expiration, as 50% of your South Carolina state tax liability, or $3,500 a year for up to ten years – whichever is cheapest.
Right now there are lucrative federal solar tax incentives available that can offset nearly one-third of the purchase prices of a solar system through a 22% tax credit. This 22% tax credit has not been extended past 2021, so it’s important to take advantage of this offer now.
Leasing Solar Energy
If you aren’t ready to make the investment into purchasing your own solar panel system, South Carolina also lets you lease these panels. Leasing the panels allows you to “rent” the energy system for a specific period of time. Then, you pay a fixed monthly rate. Regardless of how much energy the system provides every month, your fixed rate will never annually change. However, your rate can increase at the start of a new 12 month period.
There are benefits to leasing power! First, your monthly electricity bill will be lower. You won’t have an up-front, expensive investment. Since the panels are leased, they can provide performance guarantees. Like all solar panels, there’s not a lot of additional costs to budget in, like monitoring or maintainance.
However, it’s important to note that if you are on a lease and you sell your home in the middle of your contract, there can be some complications. If you’re selling the home, you either need to buy out the remainder of your lease, or transfer to the new property owner. However, if you’ve used a solar loan to finance it, the options are different depending on what type of loan was taken out. Regardless, it’s important to remember that homes with solar panels sell quicker and for a higher price.
If you’re interested in learning more about solar, let ONIT be the one to help you! We’ve been helping families set up solar panels and flexible financing options. To find out more about solar panels in South Carolina, visit us online or give us a call at 1-833-433-0331.