As energy costs continue to soar across the nation, many Georgians have turned to solar energy systems as a sustainable solution to generate electricity, reduce utility bills, and embrace renewable energy sources. By 2020, the solar capacity installed in Georgia was sufficient to power an impressive 312,450 households, and the projected market growth for the state’s solar industry is a staggering 1,924 Mega Watts over the next five years.
Despite a setback in 2019 when two pro-solar candidates for the Georgia Public Service Commission lost to establishment candidates, the rationale for installing solar panels in your home remains compelling. With Georgia’s abundant sunshine throughout the year, the returns on solar investments can be substantial.
In 2021, anticipate a more forceful push and discourse within the Georgia state capitol to revise the renewable portfolio standard (RPS) and require utilities to generate a more significant portion of energy from clean sources, such as the solar panels installed on your roof. Typically, the implementation of robust RPS standards results in improved solar incentives.
While Georgia currently lacks local solar incentives or rebate programs, Georgia Power offers a net metering program that allows you to sell excess energy generated by your solar panel system back to the utility at a rate lower than the retail energy cost.
However, hope remains, depending on your location and the rate your power company offers for the clean electricity from your solar panels. Without solar incentives, savvy Georgians are exploring crowd-sourced bulk discount solar buying programs, EMC incentives, net metering, and low-cost solar loans provided by EMCs and municipalities. This research and digging can be well worth the effort, especially since many such programs require approval before installing your solar system.
The Federal Solar Tax Credit: A Game-Changer
The federal solar investment tax credit is a significant factor in reducing the cost of going solar in Georgia. Until the end of 2032, if you invest in a solar energy system, you can claim a federal tax credit of 30% of the total system cost, including equipment, labor, and permitting.
For example, if your solar energy system costs $20,000, you would be eligible for a federal solar tax credit of $6,000, a substantial 30% discount on the entire system’s cost. In 2033, the federal tax credit will drop to 26%.
It’s important to note that this credit applies to those who purchase their solar system outright or through a loan. Unfortunately, those who lease a solar system miss out on this incentive, as the credits go to the third-party owner.
Maximizing Your Solar Savings: Top Georgia Solar Incentives
Beyond generating your own solar energy and enjoying lower monthly electricity bills, you may also benefit from additional solar incentives. If you generate surplus solar energy, you can sell it back to the utility company through a net metering program. Participating utility companies will measure the excess solar electricity you feed into the grid and compensate you based on the rate approved by the Georgia Public Service Commission.
In Georgia, the net metering rate is established based on the avoided cost of utilities, the rate they would pay to power generators if they were to source electricity from them instead. For instance, in 2016, utilities would pay between $40 and $60 for each megawatt-hour (MWh) you generate. If you install a 5-kilowatt (kW) system with an annual output of 5 MWh, you could sell the surplus electricity for $200 to $300. Among the utility companies in Georgia, Georgia Power provides the most favorable net metering program.
Georgia Net Metering: Unlocking the Value of Your Solar Power
In Georgia and other states, you are entitled to receive a total retail rate compensation for the excess electricity you export to the grid using your solar panels. Net metering involves your utility company monitoring how much energy your solar power system produces and how much energy you consume, ensuring you get credit for the surplus.
In 2019, the Georgia Public Service Commission (PSC) filed a resolution in Georgia Power’s rate case, requiring the utility to offer net metering with monthly netting to 5,000 rooftop solar customers or 32 MW of capacity, whichever comes first. While this falls short of the target for net metering capacity considering the size and population of the state, it’s a step in the right direction.
The program is available under Georgia Power’s Renewable & Nonrenewable Tariff (RNR), and the utility maintains a web page with the most recent numbers of people and MW signed up under the RNR program.
Jackson EMC Solar Power Rebate Program: A Bright Opportunity
Jackson EMC is one of the few utility companies in Georgia to offer solar incentives and rebate programs. Consumers of Jackson EMC can take advantage of this program, which provides a $250 rebate for each kilowatt installed on your home.
However, it’s crucial to note that your eligibility depends on passing inspections and obtaining proper permitting. Your solar company must handle the inverter and solar panel installation correctly for you to cash in on this rebate. Jackson EMC caps the refund at $2,500, so rooftop solar systems larger than this won’t receive additional rebates.
For example, the average 11-kilowatt system would qualify for a rebate, but since the company caps it at $2,500, that is the maximum amount the customer would receive.
The Georgia Solar Power Free-Market Financing Act of 2015
This decree grants solar leasing and power-purchase agreements in Georgia, making solar more cost-effective for home and business owners statewide.
Georgia Offers Solar Power Performance Payments
Performance-Based Incentives (PBIs), also known as SPPPs, provide small cash payments for the measured energy production of a solar power system. SPPPs are available in Georgia, further incentivizing the adoption of solar energy.
By leveraging these solar incentives and rebates, Georgians can harness the power of the sun while reducing their energy costs and embracing a more sustainable future.
