Maximize Your Tax Refund By Investing In A Solar Power System

Tax return season is upon us, a time when many Americans turn their tax refunds into big ticket purchases. But before you upgrade to a new set of wheels, consider this: Installing a solar panel system can be one of the smartest investment options available.

Homeowners in South Carolina who go solar can reduce or eliminate electricity bills and free up more than $1,000 dollars in cash each year. And with $0-down, low interest solar financing options available from Southern Current, even homeowners that lack cash can take advantage of a solar power investment to start saving on electricity bills!

Solar Power: A low-risk retirement investment with high returns

People planning for their retirement generally pick low-risk investment opportunities to ensure that stable financial returns are delivered over time. Solar power is a great fit: solar panels provide steady, increasing returns, similar to traditional investments like stocks and bonds, but without the unpredictable fluctuations of the market.

Detail of solar panel roof atop a house in Charleston.

Financial benefits of a solar power investment include:

  • The dramatic reduction or elimination of monthly electricity bills. A home solar energy system can generate 50%, 60%, even 100% of your power needs, freeing up cash to be spent on things other than electricity payments.
  • Protection against future power-rate increases. Electricity rates go up every year – in 2015, they increased from 3% to 9.6% depending on where you live. By generating your own energy with solar, rather than renting it from the local utility, you can protect yourself from unpredictable rate increases for the lifetime of your solar energy system (30 years or more).
  • An increase in home value. Installing solar panels is an investment in your property and studies have shown that homebuyers are consistently willing to pay more for homes that are equipped with solar panels (because they have little to no electricity costs). You get the financial benefit of a solar energy installation today, and if you sell your home you get a bonus benefit in the form of sales premium.
  • Savings from solar are not taxable. Unlike returns from other investment vehicles (stocks, mutual funds, etc,), financial returns from solar come in the form of monthly savings, not income, meaning they are not subject to income taxes.
  • A solar investment is eligible for incentives. Imagine if your local financial adviser was able to offer you a 50% off sale on an annuity. While this scenario is very unlikely, the opposite is true of a solar investment.
    • The US federal government offers a 30% tax credit to both home and business owners who install solar power systems, plus the state of South Carolina offers an additional tax credit worth 25% of the total cost including installation. Plus, local power companies Duke Energy and SCE&G will pay YOU to go solar! Sound crazy? It’s actually a no-brainer!

Explore an investment in solar power today!

The first step when considering solar as an investment opportunity or for your retirement is to find out how much solar can actually save you. Contact Southern Current to schedule a no-cost solar consultation and see how much return on investment you could be earning!

South Carolina Solar Power Rebates And Incentives

In addition to decreasing solar costs, individuals interested in going solar in South Carolina have the opportunity to take advantage of some remarkable solar rebates and incentives which decrease the overall cost of installing a solar power system.

30% Federal Solar Power Tax Credit

The US federal government offers a tax credit to both home and business owners who install solar power. A tax credit worth 30% of the total system cost and installation is available. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.

25% South Carolina Solar Power Tax Credit

The state of South Carolina offers an additional tax credit for home and business owners who go solar. The South Carolina solar tax credit is worth 25% of the total cost including installation. The maximum incentive for the SC state tax credit is $3,500, or 50% of taxpayer’s tax liability for that taxable year, whichever is less. This credit has no expiration date and any excess credit may be carried forward up to 10 years.

Electric Utility Solar Power Rebates & Incentive Programs

Many utilities in South Carolina offer additional solar rebate programs that provide an extra incentive for going solar. Speak with a Southern Current representative for more details on the specific programs available in your area. Contact Us today!