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  • Victor Lewis

Is Solar Worth it in South Carolina With The South Carolina Solar Tax Credit?

Updated: May 2, 2023

Solar energy is sweeping the nation, and everyone is talking about what it means for the industry. Of course, as we all know, what is right for one state might not be right for the other. Solar energy could be a great match for homeowners in Colorado or Florida—but what about here in South Carolina?

When it comes to solar, there are many factors that can influence the value of investing in solar depending on the state where you live. In this article, we will break down the value of solar panels for residents in South Carolina!

State Factors That Influence the Value of Solar and Determine The South Carolina State Tax Solar Credit

Every state is different, but the South Carolina state tax solar credit is certainly one of the best yet. We can tell by the changes in culture, the different styles of food, and even the makeup of a town square. The reality is that there are many factors that separate different states in the United States, which is what makes it so great to road trip through this beautiful country.

As the solar industry continues to influence U.S. homeowners, residents in South Carolina want to know what the numbers look like. Let’s take a look at the different state factors that influence whether or not home solar is a good investment for homeowners in a specific state.

Energy Bills

Energy keeps the modern world turning, and we rely on it every single day. From making our coffee in the morning to watching our favorite shows in the evening, most of us use energy in some form with everything that we do.

While residents in every state rely on energy, you might not know that the price of energy can vary significantly by state. Since this is the case, it means that some homeowners can save more than others with solar depending on the state they live in.

The average electric bill in the United States is $121.01

Household Income

Homes all around the United States have different family dynamics. Newlywed couples, families with four kids, and multi-generational households. There are many factors that influence what the household income is, including salary, and household incomes can vary significantly based on these factors.

Solar savings can be a great opportunity for households with different levels of income. However, the fact is that households that can benefit from extra savings might find that solar panels can save them quite a bit of money long-term. This can help to offset other bills and make living more comfortable.

The average household income in the United States is $87,864

Solar Incentives

The government is very interested in solar energy, both on a federal and state level. Already, there is a 30% Federal Tax Credit for homes with solar. This can be a great opportunity to save and receive a portion of what you spend on solar back, and it is available to citizens in the United States.

While the federal credit is a great place to start, many states are seeing the value of solar and offering additional solar incentives to residents. This means that some states allow even greater savings.

Net Metering

Net metering is a process that allows homes with solar panels to take their energy and sell it back to the grid each year, allowing for a little extra revenue. This income can also be used to offset any energy bills you might have accrued in the event you do end up using energy from the grid for any reason–and it can make you money too. It is important to know if this option is available in your state when deciding on the value of solar.

Is Solar Worth it in South Carolina?

Now that we know what factors can influence the value of solar in each state, it is time to take a long look at South Carolina and consider what we can learn based on these factors.

The Cost of Energy in South Carolina

Energy prices are a very important consideration because they will ultimately determine how much you will save each month. All around the United States, energy prices are climbing. This means that most residents in any state can benefit and will see more value as these prices continue to climb.

In South Carolina, residents have even more to gain. In our state, the average electric bill was $138.65 in 2021—above the U.S. average—and it is only growing, meaning homeowners in this state have even more to gain.

Household Income

Every state has households at different household income levels, but the numbers in South Carolina show us that there is quite a bit to gain. The average household income in South Carolina is $81,142, with many households falling well below that. When we compare this with the potential annual savings of more than $1500 based on the South Carolina energy prices, it is clear homeowners in this state have plenty to benefit from solar panels.

Solar Incentives

The typical cost of solar panels for South Carolina homes is $12,210 per system. While this might seem like a steep sum, the savings opportunities quickly balance a large amount of the initial investment. In addition to the 30% Federal Tax Incentive, South Carolina residents also receive an additional 25% tax credit from the state. The value of these incentives will be clear come Tax Day!

Net Metering

South Carolina wants to support residents that help improve the state. With net metering, South Carolina residents can sell their extra solar energy to leading energy groups in the state. This means that you can share your energy with your neighbors and make money doing it. Initially, your net metering will be used to offset any energy bills you may have (if you have any at all), and then you will be paid out for the rest in alignment with the net metering agreements at the time.

Conclusion: Solar Energy is Right for South Carolina Residents!

No matter what your household brings in or where you live, it always helps to have fewer bills each month, which is why homeowners everywhere are searching for solar companies near me. Solar panels support homes on many levels all around the United States.

Is solar worth it in South Carolina? Well, for South Carolina residents, solar energy provides plenty of great opportunities to save—from tax incentives to a little extra money generated by the solar panels on your home to the large amount of equity that your home will gain as well from the solar system

To learn more about how home solar can help you to lower your bills and increase your income, visit us at Solarflare Energy Company and try out our free solar savings calculator. We help South Carolina homeowners get started with solar solutions that include no upfront costs or down payments, and we always strive to be the best solar company for our clients!

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