Solar incentives and tax credits available in Hilton Head Island, SC

Solar Incentives in Hilton Head Island, SC

Complete guide to solar tax credits, rebates, and incentive programs available to Hilton Head Island homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Hilton Head Island homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Hilton Head Island, SC.

South Carolina State Solar Incentives for Hilton Head Island Homeowners

South Carolina Solar Tax Credit

Tax Credit

South Carolina offers a state income tax credit of 25% for solar installations, one of the most generous state credits in the nation.

25% of system cost with no cap

Net Metering

Net Metering

South Carolina requires utilities to offer net metering for residential solar customers.

Full retail rate credits for excess generation

Net Metering in Hilton Head Island, SC

Available

South Carolina requires investor-owned utilities to offer net metering at the full retail rate for residential solar systems up to 20 kW.

Solar Renewable Energy Credits (SRECs) in Hilton Head Island

Not Available

South Carolina does not have a traditional SREC market, but the generous state tax credit provides strong financial incentives for solar adoption.

Tax Exemptions in Hilton Head Island

Property Tax Exemption
No property tax exemption for solar systems
Sales Tax Exemption
No sales tax exemption for solar equipment

How to Claim Solar Incentives in Hilton Head Island

  1. Install your solar system: Work with a qualified Hilton Head Island solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your South Carolina energy office or local Hilton Head Island utility to apply for available incentives.
  4. Set up net metering: Contact your utility in Hilton Head Island to set up net metering and start earning credits.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Hilton Head Island, SC

Hilton Head Island homeowners can take advantage of the 30% federal solar tax credit, plus 2 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Hilton Head Island homeowners approximately $5.0k on a typical system. Combined with South Carolina state programs, total savings over 25 years can reach $32k or more.

South Carolina requires investor-owned utilities to offer net metering at the full retail rate for residential solar systems up to 20 kW.

To claim the 30% federal ITC, Hilton Head Island homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
$0Down Options