Financial Incentives for Solar
With current rebates and credits, there will never be a better time to go solar!
3 Ways to make money from solar
1. Federal Tax Credit
The Federal government is incentivizing home and business owners to go green. They currently offer a 26% tax credit on the full cost of the system.
How does this work? It depends on how you pay taxes. If you are on a regular salary, and your taxes get paid automatically with every pay check, at the end of the year you have have paid a certain amount in taxes. Out of the federal taxes you have paid, you will get 26% of the system cost back from the government, when you file your taxes. If you are a contractor, or self-employed, and you only pay taxes once per year, then you will deduct 30% of the system cost from what you owe the federal government.
If you have paid in (or owe) at least the full amount of the credit in that year, you will get back (or deduct from what you owe) the full amount in a single year. If you have paid in (or owe) less than the credit amount, the remaining balance can roll over to the following year. For more information, directly from U.S. Department of Energy, click here.
2. State Tax Credit (South Carolina)
The South Carolina government is also incentivizing home and business owners to go green. They currently offer a 25% tax credit on the full cost of the system.
How does this work? It is paid back to you, or deducted from what you owe much the same way as the federal tax credit. The only difference is how much of this credit you can claim in any one year.
Unlike the federal credit, you are not able to claim the full state credit in one year (in most cases). You can claim up to 50% of the state taxes you have paid (or owe), up to a $3500 cap, in any given year. You have 10 years to claim your full 25% state tax credit. In most cases, it will take 2-4 years to claim the full credit. For more information, click here.
3. Free energy for 25+ years
The harsh reality of living in the modern world is, if we want to keep the lights on, we need to pay someone for the electricity needed to do that. This is something we cannot escape, and it is a monthly expense that continues to rise year after year. Some utilities in the state of South Carolina are averaging more than 4% increases every year! At that rate, if your average bill today is $200, in 10 years from now it will average $310 per month, and you will have spent more than $30,000! And for what? Just to keep the lights on.
There's a better way - become your own utility. Going solar will free you in whole, or in part from your monthly bill for 25+ years. Wouldn't you rather put that $30,000 in your own pocket, rather than your utility company's? More info...