Federal Solar Investment Tax Credit (ITC)

U.S. Department of Energy / IRS

Closed Solar & Renewable

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

Charleston homeowners can claim the 30% federal Solar ITC on installation costs. South Carolina offers a state Solar Energy System Tax Credit of 25% of the cost, up to $3,500 per year (stackable over multiple years up to 50% of cost). Dominion Energy South Carolina and Berkeley Electric Cooperative offer net metering programs. Average Charleston system: $16,000-$24,000.

30% federal ITC + 25% SC state credit (up to $3,500/yr) stacked

Federal program, maintained from the official federal source.

Data last verified 2026-04-03. How we verify our data.

This is a national program. In Charleston, SC, you can stack it with local programs like these:

Key Details

  • 30% federal ITC on full solar installation cost
  • SC Solar Energy System Tax Credit: 25% of cost, up to $3,500/year
  • SC credit can carry forward and stack over multiple years
  • Dominion Energy SC and Berkeley Electric Cooperative net metering
  • Average Charleston system savings: $8,000-$14,000 in combined credits

How to Apply

Get free help applying Visit Official Program Page Track this program

800-342-5435

A grant-savvy contractor in Charleston, SC can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Charleston early keeps your application moving.

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Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: IRS Form 5695

This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.

Steps to apply

  1. Have your solar or clean energy system installed and pay for it.
  2. Keep the itemized invoice and proof of payment.
  3. Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
  4. If the credit is larger than your tax bill, carry the unused amount forward to next year.
Get the official formDownload the fillable PDF

Documents you will likely need

  • Itemized invoice from your installer showing the system cost.
  • Proof of payment.
  • Manufacturer certification statement for the equipment.
  • Your federal tax return (Form 1040) for the year of installation.
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ended December 31, 2025 (federal law change)

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