South Carolina Tax Credits & Financial Incentives for Building a Green Home

Solar Energy Tax Credit

The state of South Carolina has a solar energy tax credit offered to those who install solar heating, cooling or electrical systems.  You will receive a credit equal to 25 percent of the purchase and installation costs, up to $3,500 or half of your tax liability (whichever is less).  Your system must be certified by the Solar Rating and Certification Corporation (SRCC) in order to obtain the credit.
 

For those who purchase a manufactured home, a new tax credit passed by South Carolina legislators will give you $750 if you purchase an eligible model.  It must be Energy Star or United States Environmental Protection Agency (EPA)–certified and U.S. Department of Energy (DOE) approved.  You must also purchase it from a licensed retailer and keep it in the state.  This credit goes into effect on July 1, 2009 and expires on July 19, 2019.  A sales tax cap of $300 on energy efficient manufactured homes also exists in South Carolina.  Your home must meet the same standards as those eligible for the $750 tax credit.  The effective dates for this sales tax limit are also the same as those for the tax credit.
 

Utility companies in South Carolina are rapidly advancing their offerings to their customers.  If you get your electricity from Santee Cooper or Progress Energy Carolinas, you can receive discounts on your utility bills.  Santee Cooper runs its “Good Cents” program to encourage you to take comprehensive steps to making your home energy efficient.  The requirements and discount vary whether you’re building a new home, renovating an existing one, or living in a manufactured home.  You can expect to save $8 to $12 on top of the savings you get from the green upgrade itself.
 

Progress Energy Carolinas offers its customers a five percent monthly discount for energy efficiency.  Your home must be Energy Star-certified, which has an upfront cost ranging between $500 and $800.  Again, though, the five percent discount is on top of the myriad of savings you’ll receive with your efficient green systems.
 

The Palmetto Electric Cooperative (PEC) and the Berkeley Electric Cooperative (BEC) both have rebate programs.  PEC calls it their “Buried Treasure Rebate Program.”  It extends to you if you install a geothermal heat pump.  You will receive $200 per ton up to $1,000.  Be sure to file your form before you install the system, though!
 

BEC provides two utility rebate programs.  Their energy efficiency rebate program is divided even further into two categories.  The first, the “Touchstone Home Energy Rebate Program,” applies to new or renovated homes that meet specific criteria.  New homeowners can expect $500, while renovators can receive $400.  This initiative requires more steps towards energy efficiency than does the second.  The “H2O Advantage Water Heater Rebate Program” offers up to $300 (depending on your tank size) for the installation of approved water heaters.  You must allow BEC technicians to install a load management switch before you get your money.  BEC’s second major utility rebate program is called “Earth Connect.”  If you install a geothermal heat pump, you’ll receive $250 per ton with a maximum of $1,250 after inspection.
 

BEC and PEC also offer loan programs.  BEC’s loans, called “Energy Advance Loans,” can provide you with a loan up to $10,000 that you will be required to pay off in 10 years.  If you’re purchasing and installing specific energy efficiency systems, you might be eligible for such a loan.
 

The Blue Ridge Electric Cooperative also loans to its customers that wish to install energy efficient heat pumps certified with a SEER of at least 13.  You can borrow up to $4,000 for one heat pump or $7,500 for two or more with a low interest rate.  Your loan must be repaid within five years.
 

Pee Dee Electric Cooperative, Progress Energy Carolinas and Santee Cooper are other utility companies that offer loan programs.  Each program differs in the terms of the loan, from eligible technologies and amounts to interest rates and payback periods.  However, these loans are more convenient for you if you plan to build or renovate because the companies want you to take out a loan, if only for the good of the environment, so the terms are better than other loans you’ll encounter.  Call your representative for more details if you’re interested.
 

Finally, South Carolina has an energy production incentive program similar to North Carolina’s.  It’s called the Palmetto Clean Energy Program, or PaCE.  Launched in 2008, PaCE will pay you if your renewable energy system meets certain criteria.  The payments will vary depending on your system and the general demand for green energy through PaCE by consumers.        

Such green improvements really pay off.  “You will save money,” says Ms. Jerman, who speaks from experience.  “We put in a more efficient heat pump and I am noticing about a $25 difference a month in utility bills.”

Explore additional financial incentives and important reminders:
Federal Incentives
North Carolina Incentives
Important Reminders



 

About the Author

Resources

·        DSIRE

·        Matt Siegel, Green Building Director
Western North Carolina Green Building Council

·        Trish Jerman, Manager of Policies and Programs
South Carolina Energy Office

·        N.C. Solar Center
Fact Sheet on Residential Tax Credits, Federal and State of N.C        

·        N.C. GreenPower