South Carolina Solar Power Rebates, Tax Credits, and Incentives
A pier on Myrtle Beach
2012 Update
South Carolina is home to waterfalls, lakes, and the Blue Ridge mountains as well as amazing beaches and coastal resorts. The Palmetto state is also filled with historical sites dating back to the Civil War and the Revolution. Using clean energy will keep the waters clear and the skies above blue. Read on to see what the state legislature has done to promote solar and other renewable power sources.
South Carolina’s (Lack Of A) Renewable Portfolio Standard
A Renewables Portfolio Standard (“RPS”) is a law or other piece of regulation that mandates that a certain percentage of at state’s energy production comes from renewable resources by specified target dates. If you keep up with renewable energy policy, you already know that a great many states have passed such Standards. Many of the RPS’ mandate goals as high as 30%, even 40% production in the not-that-distant future.
South Carolina currently lacks an RPS. We need to get on board with Colorado, California, New York, New Jersey, Connecticut, Rhode Island, Oregon, Washington, Arizona, and so many more states that have already passed strong RPS’s to ensure a bright future for solar power and other renewable energy. And believe me, a strong RPS is integral to that bright future. Nobody wants to give you free money – least of all the utilities. Without a strong RPS pushing them, the fat-cat politicians and businessmen have no incentive to give you incentives. Incentives for more solar power, that is!
Solar Performance Payments in South Carolina
Despite the lack of an RPS, there are two performance payment plans supporting solar power here, though only one is really worth writing about. The first, a Duke Energy program designed to help the utility meet its North Carolina RPS goals, offers a measly five dollars per megawatt-hour of solar power produced. That will net you about $30 per year with the average residential system. While thirty bucks is thirty bucks, it’s certainly nothing to write home about.
The other performance payment option here is much stronger. The Palmetto Clean Energy (PaCE) Program encourages green power here in the The Palmetto State. Incentives vary over time, but currently the PaCE Program is offering a very strong $0.10 premium for every kilowatt-hour of solar power produced by systems less than 6 kilowatts (“kW”) in size (the average residential system, is about 5 kW, so that solar power system you’re thinking about should qualify). That’s about $100 per megawatt-hour, twenty times the offer from Duke Energy.
South Carolina Utility Solar Power Rebates
Here’s where you really start to see the lack of an RPS kick in. South Carolina’s utility companies currently do not offer any rebates to reduce the out of pocket cost of a solar power system, and this time there are no green power advocating non-profits coming to the rescue, like the PaCE program did for statewide performance payments. If we had a strong RPS in place here, you can bet that the utilities would have their own programs like solar power rebates to incentivize solar power. There’s a good reason we’re so sure: that’s the way it’s worked every where that a top-notch Standard has been implemented.
South Carolina Solar State Tax Credits
While the state legislature has dropped the ball on the RPS, they’ve scored a slam dunk with South Carolina’s Solar Energy Tax Credit. When you install a residential solar power system here, you’re entitled to claim a state tax credit of 25% of the purchase and installation costs. That’s a whole lot of taxes you won’t be paying in April. The maximum credit that can be applied in a single tax year is $3,500 or 50% of your state tax liability, whichever is less. Unused credit may be carried forward for 10 years.
Solar Tax Exemptions in South Carolina
Unfortunately the lawmakers down in Columbia didn’t follow up that excellent tax credit with tax exemptions. The sales taxes exemption that we’ve seen in lots of other states would save you 6% on the cost of a solar power system here. A property tax exemption would save you even more. When you install a solar power system, your home goes up in value. We’ll go over just how much in a minute, but we’re talking thousands, and usually double digits at that. Not paying property taxes on that value is like a gift that keeps on giving, and passing a statewide exemption for assessed home value from solar power systems would help you make the switch without ever taking a dime out of the state’s bank account. Sounds like a win-win to us.
Utility Prices in South Carolina
South Carolina pays an average of 12.22 cents per kilowatt-hour (“kwh”) of electricity. That’s nearly a cent more than the national average of 11.43 cents/kwh. That’s pretty good. Yes we said good. Electricity is too cheap almost everywhere. Cheap, and dirty. Fossil-fuel backed, smog-spewing, greenhouse gas emitting, earth-killing dirty.
When all those fossil fuels really start to bite us in the butt, or start to run low … or both … electricity rates are going to rise, and fast. When that happens you’re going to be really, really happy you switched early to all that efficient, clean solar power that will be in high demand. In the meantime, solar power will still save you a chunk of change here. We’ll go over just how much in a minute.
South Carolina Net Metering and Interconnection
South Carolina lacks the clear net metering law and regulations that we’ve seen elsewhere, but in 2009 the Public Service Commission did approve a standard net metering program for all three investor-owned utilities here (SCE&G, Progress Energy, and Duke Energy”). All of your surplus energy generation is credited to the your next bill at the retail rate, and then surrendered to the utility annually on either May 31 (Progress Energy) or June 1st SCE&G / Duke Energy). That’s a pretty standard net metering program. Unfortunately there are built-in charges here that you don’t see in the best net metering programs. In order to start net metering here, you have two select from one of two plans: 1) opt for a time-of-use (TOU) tariff that incorporates potentially high demand charges into its fee structure; or 2) pay an additional monthly fee to net meter. Both tariffs involve additional charges that do not apply to customers who do not net meter.
The overall net metering score is dragged down to failing levels because, in addition to a far below average residential program, small system size limits prevent larger customers from generating all of their on site energy needs, and small circuit capacity loads can prevent people from getting onto the grid and taking advantage of net metering savings.
Interconnection receives a failing grade here as well. The $100 application fee isn’t wallet-breaking, but it’s $100 more than most states for small residential systems. You’ll also be required to install a redundant external disconnect switch, and to carry homeowner’s insurance with a minimum of $100,000 in coverage. No separate insurance on top of your homeowner’s policy is required. Considering the small system sie limit and low aggregate capacity limit, that’s a pretty abysmal interconnection program. And residential systems have it easy here. Commercial and industrial customers face higher charges and insurance requirements.
5kW Example Return on Investment in South Carolina
What do all the numbers add up to for you? Let’s check:
Installing a typical 5kW solar system should start at about $25,000. Don’t freak – that’s gonna drop fast!
- We start with the South Carolina solar tax credit. You get 25% of costs back, but the cap is $3,500 in each year. So subtract that $3,500 for a new price of $21,500. And remember you have another $2,750 in state tax credits coming next year!
- The feds calculate the 30% federal solar tax credit from out of pocket costs. Since the state tax credit doesn’t reduce those out of pocket expenses, you get 30% of the full $25,000. Subtract $7,500 for a new price of $14,000.
- Next subtract those SREC payments via the PaCE Program. That’s another $624 back, for a new price of $13,376.
- Finally we subtract your first year’s energy savings, which we estimate to be about $763. That brings your final cost after the first year to $12,163. That’s already less than half of where we started
- With a conservative estimate for the future rise of electricity prices, you can expect your new solar power system to pay for itself in just 8 years.
- In addition to those direct wallet-fattening savings, you also increased your home value by more than 15 grand.
- Best of all, on top from all that green in your pocket, you’ve created a bunch of green for the planet; 110 trees worth, every year your solar power system is humming, and you’re not buying fossil-fuel based electricity.
Like we said, the best way to know exactly how much money solar power can save you is to talk to one of our partners on the ground. Just grab your free quote one of then will be more than happy to go over all those details and help you craft a plan to get the absolute most out of a solar power system in your home. Your quote is 100% free (yes, that’s right, 100% free) and you can get as many of them as that smart shopper in you desires!
South Carolina Solar Consensus
Solar policy is a bit stop and go here. The missing RPS continues to be a tremendous worry, and the abysmal net metering and interconnection standards make the entire foundation of support for solar power look shaky. Despite the cracks in the foundation however, the combination of the PaCE back performance payments, the big state tax credit, and above-average energy prices drive initial costs to adequate levels, and payback timeframes to well past average. Given that 8 year payback timeframe, we gave The Palmetto State a solid “B.” Careful though; we can’t rest on those laurels here. With all those cracks in the foundation, one slip and solar policy can go backwards fast.
I am a 59 year old male who has been around the world a few times with the U.S. AIR fORCE. It does not supprise me that our Goverment(Gov.) is still in the anchient ages. It seems that someone would be bright enough to put in some types of reliefs to the South Carolina People. Solor power is clean and effeciant for the earth, what is our (Gov.)doing. I am also a Disabled Vetran and I have done enough damage to the earth, now I am trying to help clean it up.
Renewable resources are the wave of the future, we are living in history right now. We can change things right now, we have the power to do it. The question is are we going to change? There is alot more involved than just swirly light bulbs and solar panels. It’s a complete economic lifestyle change. We can do this, with the right educating, commitment, and working together. Solar panels is a great start. Think smater, think for the Earth.
I have an 1,000 sq ft home ranch. I have always been interested in solar heating and cooling, only recently have I been able to find out a little more about it. From the quote about the price, how does that work? There must be something smaller and less expensive for a small home?
Hi Carol, I’d need to know more information. Please email me directly and maybe I can answer your questions.
It’s very disappointing to see states such as SC do next to nothing to encourage people to use renewable sources of energy. $50,000 gets you a tax credit of about 10%? Not very generous… But, the state will give hundreds of millions in tax breaks to corporations for a whole host of other things. Once again, it proves that SC as well as other states don’t “really” want to make a difference.
Is there a program for tall buildings. I live in a four building, four story Villa. Is there something for this type of building? Our current electric bill is $26,000 for this past year, but rates are projected to rise by 30% I believe on Hilton Head. Thanks for your help.
The solar rebates for South Carolina is 25% of the cost up to $35,000 with the max each year for 10 years is $3,500.
http://www.energy.sc.gov/index.aspx?m=1&t=5&h=19
It is getting better. The Federal tax rebate for residential is no longer capped @ $2000. It is now 30% of system cost. There are also many grants and rebates available depending upon your situation. If we all chip in, solar can make a difference. http://dsireusa.org/library/includes/map2.cfm?CurrentPageID=1&State=SC&RE=1&EE=1
i have a company selling and installing solar water heating systems in the bluffton, hilton head, and savannah area. the problem i am running into are gated communities. their covenents say nothing shall be mounted on roofs. when approached about solar panels they go (duh, what do we do). they have never been approached about solar so they just ignore the idea. what do we do? when are getting a ruling like the fcc for sattelite dishes where they cannot deny someone solar panels
I am leaving Washington, DC and will be moving to Columbia, SC sometime this coming spring. I am looking for work in the solar/wind industry. Can anyone help me find companies to interview with? Thank you all, my email is adrianj.day@gmail.com.
I have been involved in the electrical and energy industry for over 25 years in SC. The problem for solar electric is the cost of the cells. Until the price comes down, and the incentives go up, little will change. In Germany, any consumer – business or homeowner – who installs solar electic is guaranteed a fixed electric rate for as long as they own/use the panels. PLUS, if they connect to the grid, they guarantee to be paid excess electric, which goes back on the grid, at the prevailing current rate. What that means is they all put in extra panels (with low interest monies earmarked for the program) and sell back power each month on the grid. The extra power “pays” for the interest and thus they owner has NO electric bill – ever! As rate continue to climb, the owner ends up making income each month.
Wind power for SC is not practical. The cost of a turbine, with our wind potential profile, will never allow a payback. Wind turbines require MUCH maintenance and have a useful life of only 10-20 years, thus no payback (as long as electric rates remain low). Wave power is promising and can be done with limited geographic “damage” to the SC coast. THE answer will remain Nuclear, although the use of coal is MUCH greater than Nuclear over the next 20 years. The saddest thing is that the average person cannot discern the truth about electrical power and the politicians are truly not intelligent enough – or honest enough – to effect a change. And finally, the amount of money a homeowner would spend on solar electric – spend a FRACTION of that cost on improving the energy “envelope” of your house (i.e. overly insulate, seal leaks, high eff AC, etc) and the paybacks are immediate and last a lifetime.
The Chinese and Taiwan and soon Mexico and Ghana cell cheap cells over the web!
I am looking to find accurate information on switching over to solar for both my business and home. I have not had much success finding information that is helpful and find it all very frustration. Your help would be much appreciated.
If you think a 19 year byback ob a $50,000 investment is good , then I have some swampland I’d like to sell you.
sigh.
good to see SC schools still cranking out morons.
I see there are a lot of questions about solar energy from the posts. I encourage you to check out the SC Solar Council, which is the South Carolina Chapter of the American Solar Energy Society – http://www.scsolarcouncil.org. The purpose of this organization is to educate and advocate for solar energy within our state. We meet quarterly and have an annual workshop series/solar tour around the state. During the month of September we will be having residential solar workshops in Charleston, Greenville, Columbia, and Conway. On October 3rd we will have solar tours in those same areas where you can see an installation up close and personal. Also, in 2009 the SC State Government has increased the state solar tax credit from 25% to 30%. Check out TC-38 (tax form for credit) at http://www.sctax.org. If you still have questions please feel to contact me at the SC Energy Office.
keep in mind with solar you’ll never have to depend on a utility company again.
That for me is the number one reason
I choose solar. Freedom from rate spikes
and knowing if there is a shortage or other problem I’ll always have the sun.
I would love to know my neighborhoods total electric footprint. Is there any way other than estimation to get solid numbers for a specific area? I think that breaking down local sectors for energy consumption would be very helpful knowledge.
I am interested in replacing my utility with Solar power. Would be interested in getting some names of companies that i could talk to.
http://solarpowerrocks.com/free-solar-estimates/
I’m confused. Is the tax credit $3,500 per year or 50% of tax, whichever is less or is it maxed at $3,500 per year for 10 years. The comment posted by Mr Ron Sebeczek on Nov 20, 2008 implies the later. The link was not definative. If I read it correctly, it was $3,500, period.
The South Carolina solar energy tax credit is 25% (30% for 2009) of the total cost of the installation. However the actual tax credit you can take for a given tax year is limited to $3500, but not to exceed 50% of your total tax liability for that year. IMPORTANT to note though is that any unused portion of the total tax credit can be carried over for up to 10 years with the same rules, i.e. each year the tax credit you can take on your tax return is limited it $3500 but not to exceed 50% of your tax liability for that tax year. See SC TC-38 for exactly how the math works
I heard a story about a retired woman who installed PV solar with the expectation that her electric bill would go down by 90% with a 10 year payback. After paying for the system and using the system her bill has only gone down by 30% meaning payback will never come in her lifetime. I am very concerned about what is being sold, how well it is understood and how many are taking advantage of consumers with these systems. I am all for solar. Wind is horrific choice as is biofuel. I like the idea of energy efficient homes with geothermal combined with solar in the right regions.
I own and operate a machine shop here between Greenville and Spartanburg South Carolina. My work is very slow at this time and I am trying my best to find out how to machine & build stuff for the solar community. I’m a great machinist but piss poor salesmen. LOL.,Thanks for any help.
I live on Sullivans Island and would like to install a rooftop PV system, still with a grid tie-in. Is there anyone in SC who has experience with this? Hurricanes in the past were a danger to removing solar panels but it is my understanding that they are lighter now. I would appreciate information to begin. Thanks.
Hi Eloise, please give our service a try here http://solarpowerrocks.com/free-solar-estimates/
I am looking to get in to business dealing/installing solar energy. Does anyone have any tips or any knowledge they could share as to help me get started? Training, Franchises, and Cost?
The cost of a Photovoltaic Array has declined considerably over the past few years. Most systems are called grid tied and they work pretty much the same. Your PV system generates power that is sold to your power provider thus you are in a sense building a savings account against future power usages ( charges ). With current tax credits, incentives and rebates, it is well with in reason to see a return on investment with in 6-10 years. It is well within most home owners reach to obtain and maintain a solar array on their rooftop or via poll mounted system. I suggest you ( readers ) consider the advantages of a residential and or commercial photovoltaic array. I can assure you the cost versus benefits well out weights the investment. I’m not the first to comment on South Carolina’s less then front line approach to Green Energy…But we seem to be experiencing some positive changes. It is up to us to move them in the right direction. South Carolina Goes Green… if we do our part too!
All of the above just got South Carolina a score of 7 out of 100 on our report card. North Carolina scored 80 and New Jersey had the highest score. Alaska was lowest with a score of 6. We are blessed with a lot more sun than Alaska. If you missed this report, see this website for details. http://solarpowerrocks.com/reports/spr-report-card-2010-part-2-state-by-state-summary-grades/
Will Santee Electric/Santee Cooper buy the power you generate at your home from you? If so, what do they pay per kwh you generate? Wholesale, off peak or other? I am planning on generating power with used/treated cooking oil and also solar. Wanting to sell power back to offset/cover my electric bill. I need to find out if I can tie directly back into the grid and if Santee will purchase the power? Also, if I generate more than I use can I sell for a profit? I need to find out what the requirements and specs are to tie the system into the grid? Do I have to furnish all the equipment, inverter/meter/panels etc? I can’t seem to find out much about Santee’s buy-back program if in fact one does exist? I have been an Industrial Electrician most all my life and can build my own solar panels/generating system myself. I just need to find out what the specifications/requirements of the system. Any help would be greatly appreciated. Please email at (chardanio@ftc-i.net) Thanks, Danny
i live in a mobile home my power bill is around 250 to 400 dollars very month i know i need a new a/c but im considering getting solar panels can anyone give me advice is this a good idea or just stick with paying the power co?
Shealy Electrical Wholesalers will be hosting a free training class sponsored by SolarWorld on their Sunkits
Date: Wednesday, October 12th
Time: 9:00am to 12:00pm EST
Location: 120 Saxe Gotha Road West Columbia, SC 29172, Corp Headquaters Training Room
Presenters: Roger Locke, Michael Mularski & Randy Castellanos
please feel free to contact me for more information and for registration information
I live in a 28×72 mobile home and my electric bill runs 120 – 200 dollars/ month; we are very conservative with usage. However, we are considering solar power. Will it benefit us to do so.
I am remodeling a 1200sq ft home with a 1200sq ft basement. I lived in Italy for 4 years and they both heated and cool their homes using pex tubing with water and either a tankless water heater or solar water heater to warm the water under the flooring system. In the summer the water heater is by-passed and routed under ground to a “loop” that was either built into the foundation or underground in the yard. The water is circulated using a small pump which could be powered via solar. If anyone is interested in seeing the system after it is installed and functional let me know I would be happy to share information. toddwright@truvista.net (please no spam)
Thanks
Todd Wright
I would like to have more info on solar power. I HAVE A SMALL BUSINESS AND THE elecrical bill is above $1000 per month.
Would appreciate someone getting back to me. Thanks
frontdesk@benjisbandb.com
atten: Charlotte
Wow! Charlotte, please sign up here and someone should give you a buzz and sort you out.
http://solarpowerrocks.com/free-solar-estimates/
We’ve lived in SC since 2006 and we recently moved to the Greenville area from Rock Hill. I was shocked to see the 13.28 cents/kWh rate charged by Blue Ridge Co-op. Duke was charging us around 8 cents/kWh in RH. Our current home is all electric and the bill is atrocious between $200-$400! I began researching alternative power generation within a couple months of moving here. My research has shown that SC currently has a DISMAL program for Net Metering and grid interconnection and has made very little positive changes to promote renewable energy production. The state power grid is unbelievably complex and proper oversight is almost non-existent. It’s as if the power companies get to establish everything in their favor where distributed generators (local homeowners and business producing green energy) get almost NOTHING in return. Yay…we barely get to produce enough power to offset our own usage IF we make it through all the Net Metering application fees and hoops. Then, after investing thousands of dollars in our systems, THEY get to keep the annual excess for FREE and then bill our neighbors for it. Yippee skippee…that sounds fair, right?
The FACT is, SC is almost dead LAST in the nation when it comes to promoting distributed renewable energy generation. It’s perfectly CRYSTAL CLEAR that someone is afraid of losing a buck or two if too many residents actually decide to put in profit-generating solar PV systems. They’ve self-servingly structured the Net Metering/Interconnection rules to protect THEIR interests…and not for the good of the people of this beautiful state. Yep, the good ole boys are alive and in command.
Here’s another angle that I haven’t seen anyone articulate. The DIY folks are really screwed when it comes to building an expandable, modular PV system. The guy who is able to shell out $20k or more in one shot for a robust solar PV system with all the nice inverters and battery backup capability only has to pay a one-time $100 application fee to join the BREC Net Metering program (others are about the same). But the DIY people have to pay $100 and REAPPLY every time they make a major upgrade to their system. If you try to incrementally upgrade your system using the savings you realize as you go along, they make you PAY. Just yet another form of hoop-jumping and road-blocking that the good ole boys have constructed to impede the progress towards renewable, clean energy. Something has to GIVE. Residents and businesses MUST be allowed to show PROFIT for excess power generation and MUST be allowed to ACHIEVE excess generation if we ever hope to reduce our use of fossil fuels and dangerous nuclear power.
Ok, now for my FINAL rant… In light of the Fukushima disaster (and NO…we’re STILL not out of the woods yet on that one!) and all the other past nuclear tragedies, did you know that the technology exists and is already in use to harvest solar energy on a 24/7 usable basis? Yes, they are doing this very nicely over in Seville, Spain at the Gemasolar Power plant run by Torresol Energy (www.torresolenergy.com). Gemasolar is a solar heliostat farm that reflects light from a vast circular array of focused mirror collectors onto a central thermal collection tower. The focused solar radiation heats up molten salts (up to 565C) which are used to create steam to run a traditional turbine. Excess molten salts collected during the day are stored in a tank for use at night. The plant can produce peak output for up to 15 hours with zero sun!! It is amazing and we need it HERE…we do NOT need another single NUKE plant or we’re going to kill this planet and everyone on it!
See Gemasolar in Seville, Spain
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Any recommendation on any decent company that installs… Or can you tell me what to look for when shopping for solar power company…
Thank
Maria