South Carolina has quietly become a clean energy success story. With more than 1,800 megawatts (MW) of installed solar photovoltaic (PV) capacity, rooftop solar is helping lower utility bills, create local jobs, and strengthen our grid. But that progress—and the economic benefits it brings—is now under serious threat.

With more than 1,800 megawatts (MW) of installed solar photovoltaic (PV) capacity, rooftop solar is helping lower utility bills, create local jobs, and strengthen our grid.

At the center of this issue is the federal residential solar investment tax credit, known as the 25D credit. This long-standing incentive has helped thousands of South Carolinians install rooftop solar systems—cutting household energy costs and fueling growth for solar businesses across our state.

But the recent budget bill passed by the U.S. House and currently under consideration in the Senate proposes eliminating the 25D credit entirely. If enacted, this would deliver a devastating blow to South Carolina’s rooftop solar industry and undermine one of our best tools for meeting growing energy demands affordably and reliably.

The stakes could not be higher. Rooftop solar is uniquely positioned to help our state manage rising demand without overloading our aging grid or further tying ourselves to volatile fossil fuel markets. From homes to warehouses, commercial rooftops to community spaces, South Carolina has vast untapped solar potential.

The broader economic risks are just as alarming. According to the Solar Energy Industries Association (SEIA), rolling back tax credits like 25D could cause a $220 billion drop in solar and storage investments nationwide by 2030.

The broader economic risks are just as alarming. According to the Solar Energy Industries Association (SEIA), rolling back tax credits like 25D could cause a $220 billion drop in solar and storage investments nationwide by 2030. That’s not just lost opportunity—it’s lost jobs for electricians, engineers, manufacturers, logistics providers, and countless small businesses. In South Carolina alone 4,500 jobs are at risk if the credits are eliminated (SEIA).

That’s not just lost opportunity—it’s lost jobs for electricians, engineers, manufacturers, logistics providers, and countless small businesses.

Here in South Carolina, we’ve seen the transformative power of federal clean energy policy. Since the 2022 Inflation Reduction Act passed, our state has attracted more than $15 billion in clean energy investment, second only to North Carolina. Major projects from companies like Scout Motors and Redwood Materials are bringing thousands of high-quality jobs to our communities.

Yet paradoxically, several South Carolina lawmakers—Reps. Mace, Wilson, Biggs, Timmons, Norman, and Fry—voted for a bill that would phase out the very tax credits that sparked this economic boom, including the 25D credit and key incentives for solar leases and solar manufacturing.

This isn’t just a policy mistake—it’s an economic one. Eliminating the 25D credit will reduce access to rooftop solar for homeowners, force local solar companies to scale back or close, and cause South Carolinians to pay more for their electricity.

If the federal tax credit disappears too, households could face rate hikes of up to 10.9%, according to one analysis.

And the threat is compounded by state-level actions, such as the passage of H.3309, which could allow utilities to raise rates without adequate residential protections. If the federal tax credit disappears too, households could face rate hikes of up to 10.9%, according to one analysis.

But it’s not too late to reverse course.

We urge Senators Lindsey Graham and Tim Scott—and all of South Carolina’s congressional delegation—to stand up for rooftop solar, defend the 25D credit, and protect the clean energy jobs and savings it enables. According to a recent study commissioned by American Clean Power, doing so could add $32 billion to South Carolina’s economy over the next decade and support 220,000 full-time jobs.

Eliminating the 25D would turn back the clock, cost jobs, and raise bills for families and businesses across the state.

This is not a partisan issue. It’s a matter of economic common sense.

The 25D credit has helped build a thriving clean energy sector in South Carolina—one rooftop at a time. Eliminating it would turn back the clock, cost jobs, and raise bills for families and businesses across the state.

We respectfully call on you to preserve this essential policy and protect the future we’re building together.

Sincerely,
Aaron Davis, CEO, Firefly Solar