Scandium nitride (ScN) is a cubic NaCl-structured, degenerate, narrow-bandgap, n-type semiconductor that exhibits remarkable semiconducting, thermoelectric and plasmonic properties. However, its properties are sensitive to several types of defects, such as crystal defects, morphology, intentional or unintentional doping. For the purpose of reducing the deposition temperature of ScN, a series of films were deposited in the temperature range of 250–850 °C using a high-power impulse magnetron sputtering technique. While the stoichiometry and crystal structure remained unaffected in the sample series, the optical and electrical properties were affected when the temperature was decreased. Using in-depth XRD, optical and electrical characterizations, the effect of strain and dislocations on the semiconductor properties of ScN was evaluated. A reduction in the deposition temperature from 850 °C to 450 °C yielded a slow change in the electrical and optical properties, while a drastic change occurred for the films deposited below 450 °C. The main cause of the deterioration of the electrical transport properties (σ/10 000; n/100, and µ/100) was attributed to a high dislocation density (1011 cm−2) along with a rhombohedral distortion of the ScN cell (α: 90° → 88.6°), which was the main cause of the variation in the electrical transport. The presence of dislocations/crystal defects in the film generated defect states near the edges of the valence and conduction bands, softening the edges and impacting the electron density and mobility. The best thermoelectric properties of ScN were obtained when it was grown at 850 °C and were further modified and altered by strain engineering.