Solar Incentives, Tax Credits and Rebates
Read on to understand what solar incentives you may qualify for! Or request a quote and our Solar Energy Consultant will walk you through it all.
How do tax credits work?
Tax credits can dramatically reduce the net cost and payback period of a solar system and are currently the best incentive out there.
A tax credit is even better than a tax deduction.
You don’t subtract it from your income—you subtract it from the amount of taxes you owe. Every dollar of tax credit is a dollar you don’t pay in taxes.
Federal Tax Credit (Investment Tax Credit or ITC)
Amid rising electricity and home energy costs across the country, the Inflation Reduction Act makes installing solar panels and storage batteries a more attractive investment for many homeowners than it was even a couple years ago. Starting now (and retroactive back to January 1, 2022), you can get 30 percent of the cost of installing a solar energy system back as a federal tax credit. This credit remains in effect until 2032.
If you can't claim the whole credit your first year, you can carry the credits into future years.
Duke PowerPair Rebate
Unlock extra savings with Duke's PowerPair solar incentive in North Carolina. Homeowners can receive a rebate of up to $3,600 for solar and $5,400 for batteries when installed together, totaling an impressive $9,000 in savings!
Another tax advantage is a state property tax exemption for solar. While research by Zillow discovered that North Carolina is the 3rd best state for selling a home with solar (home buyers are willing to pay an additional 4.8%!), that doesn’t cause a residence with solar to have higher property taxes thanks to this NC property tax exemption.
South Carolina Tax Credit
South Carolina offers an additional 25% tax credit for residential and commercial sectors. (This plus the ITC means you’re getting 51% of your system cost back as tax credits!)
You can claim up to $3,500 a year, or 50% of taxpayer’s liability, whichever is less.
If you can’t claim it all the first year, your solar tax credit can be carried forward for ten years.
Bottom line is, when it comes to incentives for going solar, now is always the best time to make the transition. Incentives and rebates are continually decreasing, not the other way, and when you can start saving money now, why wait?
Still have questions? Reach out!
Commercial & Nonprofit Incentives
ITC - The investment Tax Credit (ITC), Also known as the solar tax credit allows commercial entities to recoup 30% of the cost of a solar energy system from their federal taxes.
Nonprofits - can also recoup 30% of their system cost thanks to the Inflation Reduction Act through a Direct Pay Provision.
MACRS - The Modified Accelerated Cost Recovery System (MACRS) allows a solar energy system to be depreciated over a 5-year period with 80% bonus depreciation available for projects installed in 2023. MACRS can help cover up to 25% of the cost of solar.
REAP - The Rural Energy for America Program (REAP) is a grant & loan guarantee program from the USDA. Rural businesses and agricultural producers that meet eligibility requirements can receive a grant covering 50% of the cost to go solar. Loan guarantees are available on loans up to 75% of the project cost.
For a comprehensive source of information on incentives and policies that support renewable energy and energy efficiency in the United States visit https://programs.dsireusa.org/system/program/nc