By Aaron Davis and Richard Lovegreen
South Carolina has quietly become a solar success story.
With more than 1,800 megawatts (MW) of installed solar photovoltaic (PV) capacity, our state is harnessing the power of the sun to lower energy bills, create jobs, and strengthen our grid.
But that progress — and the local jobs and savings it brings — is now under serious threat.
At the heart of this issue is the federal residential solar investment tax credit, known as the 25D credit.
For decades, this incentive has helped thousands of South Carolinians afford rooftop solar systems. It’s been a win-win: Homeowners cut their energy bills, and solar companies expand operations, hiring local workers to meet the growing demand.
But the so-called “One Big Beautiful” budget bill — which the president wants on his desk by July 4 — aims to eliminate the 25D credit within months.
This would be a catastrophic blow to South Carolina’s rooftop solar industry — and to our ability to meet future energy demands affordably and reliably.
The timing couldn’t be worse. Rooftop solar is an important energy generation source that can be scaled up quickly.
That speed is critical as our state grapples with rising electricity demand, aging grid infrastructure, and the growing costs of fossil fuels.
And the potential doesn’t stop at homes.
South Carolina is rich in industrial and commercial rooftop space — warehouses, factories, and retail stores with untapped solar potential. Ending the 25D credit would slam the brakes on this opportunity just as momentum is building.
The broader economic impact is no less troubling.
A new analysis from the Solar Energy Industries Association (SEIA) warns that gutting these tax credits could cause an immediate drop in solar and storage investments across the U.S.
By 2030, as much as $220 billion in investment could be lost. This doesn’t just impact solar panel installers, but also manufacturers, electricians, engineers, and logistics providers who all contribute to this growing clean energy economy.
And as Republicans in the Senate thrash out the details, the policy uncertainty is already having repercussions. More than $9 billion in investments have already been canceled or stalled in 2025, according to E2. Republican districts have been hit the hardest.
In South Carolina, we’ve already seen what federal clean energy incentives can do.
Since the passage of the 2022 Inflation Reduction Act, our state has secured more than $15 billion in clean energy investment — second only to North Carolina. Projects from companies like Scout Motors and Redwood Materials are bringing thousands of new jobs to the Palmetto State.
Unfortunately, many of the same South Carolina lawmakers whose districts are benefiting from this boom have succumbed to partisan pressure to phase out the very credits spurring the investment. That includes the 25D credit, along with key incentives for solar leases and solar manufacturing.
This isn’t just bad politics — it’s an economic misfire.
Removing the 25D credit means fewer homeowners can afford solar, fewer installers stay in business, and fewer South Carolinians get hired. It also makes our grid more vulnerable and our energy prices more volatile.
Meanwhile, state-level actions like the so-called South Carolina Energy Security Act, which was signed into law in May, are poised to make things worse by allowing utilities to raise rates annually.
Repealing existing federal clean energy tax credits and funding programs would increase average annual household energy costs in South Carolina (including electricity and fuel expenses) by nearly $50 per year in 2030 and nearly $270 per year in 2035 (Energy Innovation Policy & Technology).
The good news? The bill is not yet signed, sealed or delivered to the Oval Office.
Preserving the 25D credit and other clean energy incentives could add $32 billion to South Carolina’s economy over the next decade and support nearly 220,000 full-time jobs, according to a study commissioned by American Clean Power.
This isn’t a red state or blue state issue — it’s a common sense economic one.
Clean energy tax credits are delivering real results in South Carolina.
Undoing them now would undercut years of progress, threaten jobs, and raise costs for families and businesses.
Sens. Lindsey Graham and Tim Scott and their colleagues in the House have long championed South Carolina’s economic growth.
They can now help protect one of the state’s fastest-growing industries, rooftop solar, and the jobs of hardworking South Carolinians who are building our clean energy future — one rooftop at a time.
Aaron Davis is the CEO and founder of Firefly Solar, a leading solar energy company based in Piedmont, S.C. With a background in solar sales that began in California, Davis established Firefly Solar in 2016 to deliver high-quality, customer-focused solar solutions across the Southeast. Under his leadership, the company has expanded its services throughout South Carolina, North Carolina, Georgia, and Virginia.
Richard Lovegreen of Columbia is a seasoned solar industry specialist and the manager of Greentech Renewables, where he has dedicated the past 20 years to advancing energy solutions. A graduate of N..C. State University, Richard has become a respected leader in the Southeast’s renewable energy landscape. He currently serves as chair of the S.C. Solar Council, championing an all-hands-on-deck approach to the clean energy transition, with a strong focus on the power and potential of solar.
