South Carolina has built a strong reputation as a pro-business state, attracting global companies across manufacturing, logistics, and professional services. Many have made firm commitments to run on renewable energy—driven by customer supply chain requirements, directives from European parent companies, shareholder pressure, and their own employees’ values. Dr. Matthew Cohen at Furman University partnered with the Shi Institute to find out what that demand looks like—and what’s getting in the way.
A Clear Signal from Business
In the report, Cohen analyzed 37 corporate sustainability reports from some of SC’s largest employers and interviewed representatives from 21 companies of varying sizes. The finding was unambiguous: every company is seeking access to renewable energy. Among the 37 largest employers with published sustainability reports, 29% already source 90% or more of their electricity from renewables globally, and 39% have public commitments to reach 100%.
The pressure is cascading through supply chains. Sixteen of 21 companies cited customer demand as a key driver—meaning large anchor companies are pushing their SC suppliers to decarbonize as well. Going renewable also matters for talent: “We’re seeing more and more with younger people coming in, that they want to work for a company that’s doing these things,” one respondent noted. “In a tight labor market, that’s a benefit.”
The Policy Gap That’s Redirecting Investment
Companies share similar preferences: onsite solar first, then virtual power purchase agreements (VPPAs) that let them buy directly from a clean energy producer, and only as a last resort, renewable energy credits (RECs) from out-of-state markets. South Carolina’s policy environment makes the first two options difficult.
South Carolina operates a vertically integrated utility model, meaning a single utility controls generation, transmission, and distribution. Seven respondents described this as a significant obstacle—one they did not face in other states where they operate. Net metering in SC is also capped at one megawatt, limiting how much onsite solar a larger company can install. The result: nearly half of interviewed companies are purchasing RECs—the easiest but least locally beneficial option—many from outside South Carolina. Companies operating in multiple states said they are prioritizing renewable investments in unregulated markets first, and waiting on SC.
One respondent put the stakes plainly: “Lawmakers really don’t comprehend the level of demand for renewables. They hold a lot of keys to open a lot of renewable energy doors, and anything they can do they should be exploring now. Because these demands will become more and more. Companies like us—you’re going to lose business, companies are going to move somewhere else.”
The asks from businesses are consistent and specific: revise net metering caps, expand VPPA market options, and create new tax incentives. Emerging European regulations that require companies to source RECs close to where they operate could drive new investment into South Carolina—but only if the state moves to capture it.
The Shi Institute partners with organizations and communities across South Carolina to build the evidence base for lasting change. If you’re working on clean energy access or business sustainability in the state, we’d like to hear from you.