Congress Threatens South Carolina's Solar Boom with Proposed Tax Credit Elimination
Key Insights
South Carolina's 1,800 MW solar capacity and job growth face jeopardy as Congress considers axing the federal residential solar tax credit.
The proposed 'One Big Beautiful' budget bill could eliminate the 25D credit, crippling rooftop solar adoption and local industry expansion.
SEIA warns of $220 billion in lost U.S. solar investments by 2030 if the credit is repealed, with South Carolina among the hardest hit.
State lawmakers' push to phase out incentives contradicts $15 billion in recent clean energy investments and job creation in South Carolina.
South Carolina has emerged as a solar powerhouse, boasting over 1,800 megawatts (MW) of installed solar photovoltaic (PV) capacity. This growth has been fueled by the federal residential solar investment tax credit (25D), which has made rooftop solar affordable for thousands of homeowners while driving job creation and grid resilience. However, the state's solar future is now at risk as Congress debates the 'One Big Beautiful' budget bill, which proposes eliminating the 25D credit within months.
The 25D credit has been instrumental in South Carolina's solar success, enabling homeowners to reduce energy bills and solar companies to expand operations. Its removal would deliver a severe blow to the rooftop solar industry, just as the state faces rising electricity demand and aging grid infrastructure. The Solar Energy Industries Association (SEIA) projects that repealing the credit could result in a $220 billion loss in solar and storage investments nationwide by 2030, with South Carolina among the most affected.
Beyond residential solar, the state's commercial and industrial sectors stand to lose untapped opportunities. Warehouses, factories, and retail spaces with vast rooftop potential could see stalled projects if the credit disappears. The economic ripple effect would extend beyond installers to manufacturers, electricians, and logistics providers, all integral to the clean energy economy.
Despite the clear benefits of solar incentives, some South Carolina lawmakers are pushing to phase them out, even as the state reaps $15 billion in clean energy investments since the Inflation Reduction Act. This contradiction threatens to undo years of progress, raise energy costs, and jeopardize thousands of jobs. The debate now rests with Sens. Lindsey Graham and Tim Scott, who have the power to safeguard the state's solar industry and its workforce.