Biomass Energy Production Incentive

In 2007, South Carolina enacted the Energy Freedom and Rural Development Act, which provides production incentives for certain biomass energy facilities. Eligible systems earn $.01 per kilowatt-hour for electricity generated and $.30 per therm for methane gas 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 least 25 percent over their greatest three-year average before June 30, 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.

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.