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Columbia, SC

Solar Incentives in Columbia, SC

Every program checked at its source. Last verified: 5 October 2026.

Updated October 5, 2026 · Last verified 5 October 2026

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25% SC solar credit SC Code §12-6-3587
$3,500 yearly claim cap Form TC-38
$0 federal §25D after 2025 IRS

Solar incentives available to Columbia properties

IncentiveProviderWho qualifiesAmount and maximumHow to applyDeadline and statusOfficial source
Solar energy income tax creditSC Department of RevenueSC taxpayers who buy and install a certified system on property they own25% of cost; claim up to $3,500 or 50% of liability a year; 10-year carryforwardForm TC-38 with your SC return for the year installation is completeNo sunset for solar (SC Code §12-6-3587)SC Code §12-6-3587
Clean Energy CreditSC Department of RevenueBusinessesUp to $500,000 a year; 15-year carryforwardForm TC-54Check eligibility rules on the formSCDOR TC-54
Clean Electricity Investment Credit (§48E)IRSBusinesses and lessors (including a leasing company on a Columbia home)Set by federal law; see Form 3468Form 3468Ends for solar placed in service after 2027 where construction begins after 4 July 2026IRS Form 3468 instructions
Solar Choice rider (export crediting)Dominion Energy South CarolinaDominion customer-generators applying on or after 1 June 2021, up to 20 kW ACBill credits within each time-of-use period; November payout at avoided cost; $13.5 minimum billInterconnection application to Dominion with Rate 5 enrolmentStay on the rider at least 10 years (PSC Order No. 2026-374)Dominion rider
Residential Clean Energy Credit (§25D)IRS—Ended—Not available after 31 December 2025IRS
Solar for AllSC Office of Resilience (EPA)—$124,440,000 state award—Ended by EPA, August 2025SCOR

Last verified 5 October 2026 at each provider’s own document.

How does the South Carolina credit work for a Columbia household?

The credit is 25% of the cost of buying and installing the system, but the yearly claim is capped at the lower of $3,500 and half your state income tax liability.

That second limit is what decides timing in Columbia, where the median household income is $55,529 (ACS 2020–2024).

A household with $3,000 of state tax liability can claim $1,500 a year; on an example $20,000 system with a $5,000 credit that takes four years, within the 10-year carryforward.

A household with $8,000 of liability claims $3,500 in year one and $1,500 in year two.

The credit is for a system you own. A leased system does not give you the credit.

Whether a battery’s cost counts toward it is something we have not verified in the statute or SCDOR guidance, so ask a tax preparer before relying on it.

Full detail is on the South Carolina solar tax credit page.

What happened to the federal credit for Columbia homeowners?

The IRS says §25D "is not available for any property placed in service after December 31, 2025." A Columbia system switched on in 2026 earns nothing under §25D, regardless of when the contract was signed.

If a salesperson quotes a 30% federal credit on a purchased home system, the quote is out of date.

A leasing company may still claim §48E on a system it owns on your roof, subject to the construction deadlines in IRS Notice 2025-42, and the lease price may reflect that. What the end of §25D means.

Does the City of Columbia or Dominion offer a solar rebate?

We found none for homes. The City of Columbia’s published solar material is a permitting checksheet and historic-preservation guidance; neither offers money.

Dominion Energy South Carolina’s residential solar offer is the Solar Choice rider: exports are netted monthly, in kWh, within each time-of-use period; surplus offsets lower-priced periods the same month, then banks forward, and the bank is paid out each November, at avoided cost (the PR-1 off-peak winter energy credit), and the bank resets.

That is an export credit, not a rebate, and it pays only for energy your home sends back.

Applicants before 1 June 2021 keep legacy net metering until 31 May 2029; a buyer of a Columbia house with existing panels should ask which arrangement the account is on. Some Columbia-area addresses at the city’s edges are served by electric cooperatives, whose rules differ; check your bill. Each SC utility’s export rule.

Are there battery incentives in Columbia?

We found no Columbia or Dominion residential battery rebate. Under Solar Choice, storage counts only if it charges solely from onsite renewables, so a battery that also charges from the grid needs to be discussed with Dominion first. Battery storage in Columbia.

What can Columbia businesses and Richland County farms claim?

Businesses look at the SC Clean Energy Credit on Form TC-54 (up to $500,000 a year, 15-year carryforward) and federal §48E while its deadlines allow.

The old TC-58 Solar Energy Property Credit for large systems is listed by SCDOR as repealed on 31 December 2024. USDA farm energy programs have their own rules and funding rounds; we have not verified current Richland County availability.

See commercial solar in Columbia and solar for farms near Columbia.

How does a Columbia homeowner claim and keep the credit?

1
Keep the paperwork from day one

Signed contract, itemised invoice, proof of payment, equipment certification, the City permit and final inspection, and Dominion’s permission to operate.

2
Finish installation in the tax year

The credit is claimed for the year installation is complete, on Form TC-38.

3
File with your SC return

Claim the lesser of $3,500 or half your liability; record what you carry forward.

4
Track the carryforward

Unused credit carries forward 10 years; lost after that.

How do Columbia incentives stack, and what if one ends?

For a purchased home system in Columbia the stack is short: the state credit plus Solar Choice bill credits. They do not reduce each other.

The state credit has no solar sunset, but tariffs change: Dominion’s rider was last set by PSC Order No. 2026-374, effective July 2026 billing, and you can stay on it at least 10 years.

If a rate case changes Rate 5 prices later, your savings change with them. We re-check every figure on this page against its source; the date at the top is the last time we did.

See the Columbia cost page for how the credit changes net cost, and the Columbia solar hub for the overview.

Questions

What solar incentives are available in Columbia, SC in 2026?
For homes: South Carolina’s 25% income tax credit (up to $3,500 a year) and Dominion’s Solar Choice export crediting. The federal homeowner credit and Solar for All have ended.
Does the City of Columbia give a solar rebate?
We found no City of Columbia solar rebate as of 5 October 2026. The City publishes a solar permit checksheet and historic-district guidance, not a funding program.
Can I still get the 30% federal solar tax credit in Columbia?
No, not on a system you own. §25D is not available for property placed in service after 31 December 2025.
How long does it take to use the South Carolina solar credit?
It depends on your state tax bill. You can claim up to $3,500 a year or half your liability, whichever is lower, and carry the rest forward ten years.
Do leased solar systems in Columbia get the state credit?
The state credit is for a system you own. A leasing company may claim federal §48E on systems it owns, subject to IRS construction deadlines.
Does Dominion pay me for extra solar power in Columbia?
Once a year. Exports bank within each time-of-use period, and any balance left in November is paid at avoided cost, far below the retail rate.

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Data as of Last verified 5 October 2026. Authorship on this site is organizational: the analysis belongs to the desk rather than to a named individual, and we do not publish credentials we do not hold. Our editorial policy sets out how we source, date and correct what we publish.

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