STUDY: Solar energy could generate $19B boon to South Carolina economy

Solar energy has the potential to become a multi-billion dollar industry in South Carolina by 2035 that could generate more than 3,300 permanent new jobs and spark approximately $261 million annually in new worker pay, according to a new study.

The key findings of the study, prepared by Joseph C. Von Nessen, a research economist at the Darla Moore School of Business at the University of South Carolina, are:

• The total annual economic impact of the solar industry on the state of South Carolina is estimated to rise to nearly $1.4 billion by 2035 from its current level of approximately $306.6 million if solar production increases at the projected rates reported in the most recent IRPs filed by the state’s three primary utilities.
• This growth in the solar industry would likely generate 3,315 permanent jobs by 2035. The solar industry is also expected to support an average of 5,557 temporary construction-related jobs each year during the projected ten-year investment period in which the required new solar facilities for this anticipated industry expansion are built.
• Solar-related jobs in South Carolina pay about 46% more than the average job in the state. The average labor income across all jobs supported (directly or indirectly) by the solar industry is $78,741 a year.
• By 2035, the growing solar industry is expected to generate $260.9 million annually in new labor income for South Carolinians. Currently, the solar industry generates $57.3 million in annual labor income.
• Seveny-one percent of registered voters in the Palmetto State support the development of renewable clean energy sources (including solar), while 59 percent agree that increasing the use of clean and renewable energy sources will create more jobs and will help support statewide economic development.
• More than a dozen Fortune 500 companies with a large presence in South Carolina have 100 percent renewable targets. More than half of all U.S. Fortune 500 companies have made specific climate and energy-related commitments.
• The current economic impact of the solar industry in South Carolina is estimated to be approximately $306.6 million annually. This figure reflects the dollar value of all final goods and services in South Carolina that can be attributed (directly or indirectly) to the solar industry. This level of economic activity also corresponds to 728 jobs and $57.3 million in labor income for South Carolinians.
• Solar production will increase more than fourfold by the year 2035, according to the most recent integrated resource plan projections in South Carolina, from approximately 2,427 megawatts in 2024 to 11,047 megawatts by 2035.
• The capital investment required for development and construction of all new solar facilities will likely generate more than $9.6 billion in construction-related economic impact between 2026 and 2035 across South Carolina.
• The cumulative economic impact of the solar industry on the state of South Carolina between 2024 and 2035 is projected to total $19 billion when combining the economic impacts associated with new site development and construction alongside all ongoing operations of solar facilities.
• This level of solar development does not represent a significant threat to the state’s agricultural sector, with anticipated levels of solar to utilize a maximum of 1.4 percent of agricultural land.
• “Because of the state’s rapidly expanding population base, it will be critical for South Carolina to increase energy production in the coming years to meeting the growing power needs of its residents,” said Von Nessen. “The expansion of the solar industry represents an important component of this effort while also creating a significant local economic footprint, generating jobs and incomes for South Carolinians, and helping to improve the state’s long-run competitiveness.”

The expansion of South Carolina’s solar industry and the significant associated economic benefits can be achieved with minimal impact to agricultural land; of the 4.8 million acres of agricultural land in the Palmetto State, a maximum of 1.4 percent is expected to be temporarily impacted by the solar development projected to occur through 2035, according to the report.  Sustainable development practices such as solar grazing, and the decommissioning of projects at the end of their useful life, further preserve land for long-term agricultural use.

Related: Study: Tech sector boosts South Carolina’s economy with $52B impact

Related: Study: Potential $101B loss in economic activity in South Carolina without sustainable tech

“This study shows what a boon solar power can be to the people of South Carolina, creating good jobs and attracting large employers to create even more good jobs – all while producing the clean energy we need to power a booming state,” said Chris Carmody, executive director of the Carolinas Clean Energy Business Association. “This study also shows how little land it takes to realize all of this and move South Carolina toward energy independence.”

Click here to read the full study.