Solar Tax Credit​

Federal Solar Tax Incentives

The solar panel federal tax credit was put into place on January 1st, 2008, and it gives huge solar tax incentives to solar system builders. Any solar panel system built before the December 21st, 2021 can apply for a 30% tax credit with no cap. That means 30% of your solar panel system cost is deductible on your federal taxes. As long as you own the property, you can get tax breaks for solar panels you have installed.

The federal solar tax credit extends to two major types of solar energy usage. You can use your solar credit on solar electric systems and solar water-heating systems. No matter how much you spend upfront on your system, there is no cap to the 30% federal solar tax credit. The federal solar tax incentive saves taxpayers $5000 a year on average.

federal solar tax credit explanation

Solar-electric property

  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Solar water-heating property

  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.

South Carolina Solar Incentives

Your state taxes can be affected by a state solar tax credit as well. South Carolina offers a similar program like the federal government. They have a no cap tax credit of 25% on solar power and solar water-heating systems, but there is a catch. You can only claim solar tax rebates up to $3500 a year on the system, and the entire lifespan of the system must be deducted within 10 years. You can save even more with a state tax credit if your state has additional solar incentives, but the terms and deductions may differ from state to state.  

Solar-electric property

South Carolina offers a tax credit equal to 25% of the cost of eligible renewable energy property constructed, purchased or leased by a taxpayer and placed into service in South Carolina during the taxable year.

There is no max for South Carolina in terms of entire system cost, however there is a cap per year of $3500 with 10 years to claim entire amount.

Eligible Products: Solar PV, Solar Thermal Hot Water.

We make no guarantees you will qualify for these tax incentives. They are based on your personal tax liability on each given year. Consult your tax professional regarding your own tax situation if you are unsure on your liability. Note the tax credits although recently extended to December 31, 2021 could be subject to change. 

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We provide solar energy and energy efficiency products.

At Homestar Solar Solutions, we offer completely free quotes for homeowners and business owners interesting in solar power solutions. There is no cost. There is no obligation. We only provide information to help you understand what you need to switch to solar and how affordable solar panels are. Let us show you how to stop paying your electric bill by becoming energy independent.

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Have questions about switching to solar? If so, you can contact us here:

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1020 Wildewood Centre Dr. Columbia, SC 29229
1020 Wildewood Centre Dr.
Columbia, SC 29229
Weekdays ...... 9AM to 7PM

Weekends ...... Off

Office: (803) 764-3560

Toll-Free: (800) 909-5269
Fax: (803) 403-8694

North Carolina Counties Served

Alamance, Albemarle, Alexander, Alleghany, Anson, Archdale, Ashe, Avery, Bath, Beaufort, Bertie, Bladen, Brunswick, Buncombe, Burke, Bute, Cabarrus, Caldwell, Camden, Carteret, Caswell, Catawba, Chatham, Cherokee, Cherokee Reservation (Qualla Boundary), Chowan, Clay, Cleveland, Columbus, Craven, Cumberland, Currituck, Dare, Davidson, Davie, Dobbs, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gaston, Gates, Glasgow, Graham, Granville, Greene, Guilford, Halifax, Harnett, Haywood, Henderson, Hertford, Hoke, Hyde, Iredell, Jackson, Johnston, Jones, Lee, Lenoir, Lincoln, Macon, Madison, Martin, McDowell, Mecklenburg, Mitchell, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Polk, Randolph, Richmond, Robeson, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, State Level Sites, Stokes, Surry, Swain, Transylvania, Tryon, Tyrrell, Union, Vance, Wake, Warren, Washington, Watauga, Wayne, Wilkes, Wilson, Yadkin, Yancey

South Carolina Counties Served

96 District, Abbeville, Aiken, Allendale, Anderson, Ashe, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Charleston, Cherokee, Chester, Chesterfield, Claremont, Clarendon, Colleton, Darlington, Dillon, Dorchester, Edgefield, Fairfield, Florence, Georgetown, Greenville, Greenwood, Hampton, Horry, Jasper, Kershaw, Lancaster, Laurens, Lee, Lexington, Lowcountry, Marion, Marlboro, McCormick, Newberry, Oconee, Orangeburg, Pendleton, Pickens, Richland, Saluda, Spartanburg, State Level Sites, Sumter, The Piedmont, Union, Williamsburg, York