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South Carolina’s Clean Energy Funding Snapshot

The Inflation Reduction Act (IRA), signed into law in 2022, has led to a boom in electric vehicle (EV), battery, and solar factories in the Southeast of the United States, fueled by the law’s incentives for financing clean tech. The annual U.S. Energy and Employment Report 2024 from the Energy Department shows that the overall energy workforce added more than 250,000 jobs in 2023, and 56% of those were in the clean energy industry. 

According to the Clean Investment Monitor (CIM) — a database from Rhodium Group and the Massachusetts Institute of Technology (MIT) — $272 billion was invested nationwide in the “manufacture and deployment of clean energy, clean vehicles, building electrification and carbon management technology, through the third quarter in the past year.” 

Climate Central reported that total clean investment has been highest in the South and West, which together account for 76% of the country’s overall clean investment since 2018. E2 reported that since the IRA was established, South Carolina — a haven for beaches and southern cuisine — has cooked up 27 projects, bringing with them an anticipated 13,925 jobs. It also said that South Carolina is one of only five states with 20 or more projects announced.

Photo Courtesy Climate Central

IBISWorld reported that in 2024, the Palmetto State’s gross domestic product (GDP) reached $266.2 billion, representing an increase of 2.3% from 2023. Over the five years to 2024, South Carolina’s GDP has increased at an annualized rate of 2.4%.

2025 should be no exception. According to economists Douglas Woodward and Joseph Von Nessen, the state’s economy is expected to expand in the new year, with steady growth projected across most industries. South Carolina’s wage growth is projected to be 4.0%, which is higher than the current inflation rate of 2.7%.

The CIM has reported that South Carolina’s total public and private investments from 2018 to June 2024 came to $14 billion. These investments span several sectors in the clean industry transition.

Retail Investments

According to the CIM, South Carolina’s combined retail investments accounted for .49% of the state’s GDP. A big part of that figure has been the money flowing into heat pumps. The devices lead clean investment across much of the Southeast, where the technology has long been a popular choice for heating and cooling homes and businesses. 

Photo Courtesy Clean Investment Monitor 

Of South Carolina’s total investments from 2018 to June 2024, Climate Central says 44% — $6.3 billion — went toward heat pumps, with the state investing the most into the technology out of every state in the U.S. In the last four quarters alone, the CIM found that $1.05 billion was invested in heat pumps in South Carolina. It will be interesting to see if the trend continues into 2025.

According to Climate Central, funding for zero-emission vehicles (ZEVs) is leading clean investment in 27 states. In South Carolina, 34% of the money has gone toward ZEVs from 2018 to June 2024. Likewise, $573 million was invested in ZEVs in the state (.17% of the state GDP).


Energy, Industry, and Manufacturing Investments

Climate Central reported that solar energy is the most invested technology in 10 states. In South Carolina, 21% of clean energy investments went toward the solar power sector from 2018 to June 2024.

Photo Courtesy Zbynek Burival

Manufacturing has been a lucrative sector in the Carolinas. In the two years since the IRA, Siemens Energy, Scout Motors, Atom Power, Albemarle, Toyota, and Silfab Solar are just a few firms that have announced almost $35 billion in funding for new factories.
According to the CIM, $2 billion was invested in battery manufacturing in the last four quarters. Another $708.7 million was invested in ZEV manufacturing, and $50 million was put toward fuel equipment. South Carolina’s solar manufacturing industry received $20.2 million, and $9.3 million was invested in electrolyzers.

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