Biomass Energy Production Incentive (South Carolina)

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Last modified on February 12, 2015.

Financial Incentive Program

Place South Carolina

Name Biomass Energy Production Incentive
Incentive Type Performance-Based Incentive
Applicable Sector Commercial, Industrial, Agricultural
Eligible Technologies Landfill Gas, Biomass, CHP/Cogeneration, Anaerobic Digestion
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 0.01 per kWh / 0.30 per therm

Start Date 2008-05-29
Expiration Date 2018-06-30

Maximum Incentive 100,000 per fiscal year per taxpayer; 2.1 million per fiscal year for all taxpayers

Terms Systems that first produce energy on or after 7/1/2008 will receive payments for five years; no incentive payments will be made after 6/30/2018.
Program Administrator South Carolina Energy Office

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Note: New claimaints are only eligible to receive this credit through June 30th, 2018 and will not be eligible to receive the credit for a full five year term.

In 2007 South Carolina enacted the Energy Freedom and Rural Development Act, which provides production incentives for certain biomass-energy facilities. Eligible systems earn $0.01 per kilowatt-hour (kWh) for electricity generated or $0.30 per therm (100,000 Btu) for energy produced from biomass resources. These incentives are available to systems that did not produce energy from biomass resources before June 30, 2008, or systems that increase production by at 25% over their greatest three-year average before June 30, 2008. The incentive payment is also applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008. The maximum incentive is $100,000 per taxpayer per year. Incentives will be paid beginning on the date the system was placed in service. No incentives will be awarded after June 30, 2018. All claims will be paid from the state's general fund, and total claims may not exceed $2.1 million per fiscal year. As of August 2009, the South Carolina Department of Revenue had distributed $300,000 in payments. The incentive payment for the production of electricity or thermal energy may not be claimed for both electricity and energy produced from the same biomass resource.

For the purposes of this incentive, a biomass resource is defined as "wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials, not including fossil fuels."

For more information about how to apply for the incentive, review the program application.

Incentive Contact

Contact Name Public Information
Department South Carolina Energy Office
Address 1200 Senate Street
Address 2 408 Wade Hampton Building
Place Columbia, South Carolina
Zip/Postal Code 29201
Phone (803) 737-8030
Phone 2 (800) 851-8899


Authorities (Please contact the if there are any file problems.)

Authority 1: S.C. Code § 12-63-20
Date Effective 2008-07-01
Date Enacted 2007-06-27
Expiration Date 2018-06-30
Authority 2: HB 3649
Date Effective 2008-05-29
Date Enacted 2008-05-29

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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