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2019 Policy Grade

F

Avg. Yearly Savings

$1,100

Congratulations! You've found the ultimate guide to going solar in Georgia

2019 Policy Grade

F

Avg. Savings/year

$1,100

Your 2019 guide to getting solar panels for your home in Georgia

This page is a complete guide to the complicated and sometimes confusing process of installing solar panels on your Georgia home. Since there's a lot to consider, we've separated the page into sections to help you find what you are looking for. If you find this page useful, please share it with someone who might also find it interesting!

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** What's new for 2019 **

The peaches may be sweet in Georgia, but solar power policy and incentives are starting to turn a bit sour after a strong start in 2008. That's when Georgia legislators passed a strong solar tax credit (now dead). Then in 2015, they passed the Solar Power Free-Market Financing Act of 2015, which opens up the state to solar leasing and power-purchase agreements, bringing cheap solar to homeowners all across the state. Sadly, that action hasn't resulted in actual companies selling actual solar PPAs.

More recently, in 2018, two pro-solar candidates for the Public Service Commission were defeated by establishment candidates, meaning maybe Georgians just don't want people fighting for their right to install solar panels and get good compensation from that? Georgia lacks many of the sensible solar policies that are steadily becoming the norm across the nation, including a strong Renewables Portfolio Standard, tax exemptions for renewable energy sources like residential solar power systems, and strong net metering and interconnection laws that lay out sufficient standards to protect consumers like you. Electing anti-solar candidates to statewaide office isn't doing you any favors, Georgia.

The end of Georgia’s decent-if-not-spectacular tax credits for solar installations was the last nail in the ROI coffin for solar purchases here. With no statewide incentives for installing solar panels, The Peach State ain’t so peachy for solar power. There is still hope, depending on where you live and how much your power company is willing to pay for the electricity from your panels. Read on to find out all about the ins and outs of solar policy in Georgia.

Questions? Our network of solar experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page. You can get discounted on-grid pricing as low as $4,000/kW! This is paired with the Georgia solar incentives you see below.

The Solar Strategy section is focused on the 3 ways of paying for solar in Georgia, so you can decide which is best for you. We've created a tool that asks you a few questions and recommends whether you should pursue a solar lease, loan, or outright purchase. Then, we provide detailed analysis of how each works.

The Policy Information section contains all our latest research on the rules set by lawmakers and the Public Utilities Commission, which determine how easy it is to go solar in Georgia. These policies and rules govern everything from renewable energy mandates to interconnection, and have a huge effect on the viability of solar.

Finally, the Solar Incentives section includes information about money-back rebates and grants, tax credits, and tax exemptions for going solar in Georgia.

Click any of the boxes below to go to that section of the page, or scroll down to read the page in order.

Your Solar Strategy in Georgia

Figuring out the best way to go solar in Georgia can be a little daunting. From loans and leases to power-purchase agreements, there are a lot of options out there. To help you pick the one that might be best, we've created the handy decision tool below.

We'll ask you a few simple questions about you and your home. Once you're done, we'll recommend a good option. Further down this page, we provide cost estimates and example return-on-investment calculations for all the various options:

How should you pay for solar?

Use our decision tool to find out!

How to pay for solar panels in Georgia

The chart above shows the 25-year returns for an investment in solar whether you choose to purchase a system with cash or pay over time with a loan. As you can see, the purchase option leads to the highest dollar-amount returns over time, but it also requires a big up-front investment. Part of the reason for the big investment is that Georgia homeowners need a lot of energy to power the average home. According to the U.S. Energy Information Administration, the average Georgia home needs nearly 14,000 kilowatt-hours (kWh) per year, which costs the owners over $1,600.

That's a ton of power, and you need a pretty big home solar system to make it all. Trouble is, Georgia doesn't have amazing net metering rules, so you can't make your system too big, or you'll end up selling power back to the utility company for pennies on the dollar. We estimate the average home will need an 11.1-kW system, made up of thirty-four 325-watt panels. To pay for that bad boy, you'll need about $33,300, either in cash or a loan.

Speaking of a loan: if you take a solar loan or home equity line of credit (HELOC), you'll have to make payments over 15 years, but because of the unique way the federal solar tax credit is structured, you'll come out a few thousand ahead in year 1, and make payments on the principal while enjoying electric bill savings.

If you're ready to learn more about paying for home solar in Georgia, read on to learn more about each option.

How much can you save with solar?

Find out

Option 1: Paying cash for solar

An outright purchase used to be the only way to get solar, and it's still the option that provides the best dollar-for-dollar returns. The reason it's so great is that you own the system from day one and reap all the benefits. The Federal tax credit and electricity savings bring your first-year costs down.

In our example, you put down $33,000 up front, but by the end of year 1, incentives and energy savings will erase a bunch of it. Over 25 years, your system will have produced nearly $11,000 in income.

Here’s how the numbers pencil out when you pay up front for an average-sized 11.1-kW rooftop solar system in Georgia:

  • Installing a typical 11.1-kW solar system should start at about $33,000. Don’t worry – even without rebates, your first-year costs will be considerably less than that.
  • Since the Feds calculate their incentive based on actual out of pocket costs, the lack of rebates means a bigger federal solar tax credit. Subtract $9,900 (30% of $33,000) for a new price of $23,100.
  • After the tax credit we subtract your first year’s energy payments from Georgia Power, which we estimate to be about $1,100. That reduces your cost to only $22,000.
  • Electricity is cheap in Georgia, which means your system will pay itself back pretty slowly; with initial payback after 18 years. Over its 25-year life, you'll see a total net profit of over $12,000, after the system pays for itself. That's an internal rate of return of 3.2%, meaning you might be better off putting your money in a retirment fund.
  • And don't forget... your home's value just increased by around $23,000, too (your cost after incentives)!
  • In addition to all that cash (and home value), you’ve created some green for the earth as well by not using electricity from fossil fuels. It's like planting 231 trees a year, every year your solar power system is humming. That's nothing to sneeze at!
Keep in mind, the numbers above are based on an average home in Georgia. If you're ready for a custom quote for a solar panel system, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.

Option 2: Using a loan to pay for solar

Oof, look at that chart. It starts out so promising, with the tax credit actually helping you turn a profit in year 1. But then your loan payments exceed your energy bill savings by so much, you end up $17k in the hole by the time the loan is paid off. Then you scrape up the savings for the last 10 years, ending up just barely breaking even. Read more about how it works below, and if you get quotes from solar installers, compare our cost numbers to theirs. If you can get a system for cheaper, the economix make so much more sense.

The reason a solar loan is supposed to work so well is that you don’t have to put any money down, but you still get all of the incentives that go along with buying solar. You'll get the 30% federal tax credit and the energy bill savings will start right away. The bad news is your loan payments will be higher than those energy bill savings, so you'll end up spending about $170/month for solar in the first year. That difference will come down each year as electricity prices rise, but your system will keep on producing about the same amount of electricity.

Here’s how the numbers pencil out for a Georgia solar purchase with a solar loan or HELOC:

  • Installing a typical 11.1-kW solar system should start at about $33,000. That's how big your loan will need to be.
  • Your electricity bill will be reduced to the tune of $1,100. But your loan payments will be $3,050, for a difference of $1,950 this year, or about $160 per month.
  • That's not so bad when you consider your tax savings for the year will be $9,900! You'll come out over $8,000 ahead in year 1, which should help ease the burden of loan payments for a few years, at least.
  • When your loan’s paid off in year 15, you’ll start see over $1,500 per year in savings until the end of your system’s life.
  • For our 25-year estimate, you'll end up almost breaking even again, at -$390. Again, if prices from Georgia Power rise faster or if your system cost is less, this could be proft.
  • And your children's future is going to look a little brighter, since your system will mean green for the environment. It'll be like planting 231 trees every year!
Keep in mind, the numbers above are based on an average home in Georgia. If you're ready for a custom quote for a solar loan, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.

Option 3: Buying the electricity, not the panels with a Power Purchase Agreement (PPA)

Georgia does not offer solar Power Purchase Agreements or leases. Perhaps it would be a good idea to contact a solar advocacy organization and ask them to fight for solar in your state!

How much can you save with solar?

Find out

Georgia Solar Policy Information

Ever wonder why solar seems to be everywhere in some states, but not in others? We did too.

State legislatures and public utilities commissions can enact rules to make solar power accessible for everyone. Favorable rules explain why some of the cloudiest states—New York, New Jersey, and Connecticut, are doing so well with solar, and yet some of those with the most natural solar resources—like Alabama, Mississippi, and Georgia—are doing so poorly.

Below is important information about the public policy, rules, and economic reasons that affect your ability to go solar here in Georgia:

Georgia's Renewable Portfolio Standard

None

Grade: F

Georgia's Renewable Portfolio Standard grade

A Renewables Portfolio Standard (RPS) requires utilities in the state to eventually source at least a certain percentage of their electricity from clean, renewable sources like solar panels. Unfortunately Georgia is one of a minority of states that has yet to pass any RPS. The legislature is missing a big opportunity to help safeguard your environment and save citizens money.

We see the same pattern all across the country. In states with renewable energy targets written into the law (and penalties for failing to meet those targets), the state and the utilities come together to offer strong incentives for residential solar power. In states that lack an RPS the landscape is far more murky. There might be the occasional tax credit or utility-specific performance incentive, but states that lack an RPS generally lack a cohesive policy to encourage renewable energy.

Bottom line: If we want a strong future for renewable energy here, we need a strong RPS—ASAP. Utility companies aren't really all that gung-ho about you producing your own power. After all, it costs them money when you use less of their electricity. They also naturally don’t want to give you big payments for energy you're feeding back into the grid. The main reason the utilities in other states are the transition to lower electric bills and offering incentives to put solar on homeowners’ roofs is because the states force them to. If the utilities don't hit their RPS numbers, they have to pay large fees back to the states. Not so in Georgia.

Learn more about Renewable Portfolio Standards

Georgia's RPS solar carve out

None

Grade: F

Georgia's Solar Carve-out grade

The best states for solar mandate that a certain percentage of the RPS comes directly from solar energy. Without an RPS in Georgia, this is another area that falls short.

Learn more about Solar Carve-outs

Georgia Electricity Prices

$0.12/kWh

Grade: C

Georgia's Electricity cost grade

Electricity runs about 12 cents per kilowatt hour (“kWh”) here. That’s pretty low. In fact electricity here is nearly even with the national average.

Why do we pay so little for energy? Sadly it’s because our energy is backed by lots of earth-killing, non-renewable fossil fuels. The effects of all those fossil fuels are already starting to rear their ugly ozone-destroying heads. Not to mention the fact that the price of all those fossil fuels has been steadily climbing higher and higher. The price is only going to keep rising, and rising… and rising, and those shiny solar panels on your roof are going to look better, and better, and better.

Whatever you think of the environmental side of things, solar power will save you money. The price of electricity rises about 3.5% per year, meaning that solar will save you more every year. New government regulations and supply shortages will cause price increases going forward. People who switch to solar now will inevitably reap the benefits of that good decision-making for decades to come.

Find out why electricity prices matter

Georgia Net Metering

Fair

Grade: B

Georgia's Net Metering grade

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.

Unfortunately that’s about all Georgia’s net metering law says. There are no safeguards to stop the utilities from springing unanticipated fees on you, a cap on residential systems that may not allow all customers to produce all of their energy needs and still take advantage of net metering, and a woefully small aggregate capacity limit.

The aggregate capacity limit is essentially a limit on the number of people that can hook up to one grid to take advantage of net metering. Georgia’s aggregate capacity limit for net metering is currently only 0.2% of the total circuit load. We won’t bore you with the technical details; sufficed to say, that’s low. Real low. If many of your neighbors are already producing their own power, you may find yourself waiting for space on the grid because of the draconian standards the state has set.

We still give Georgia a B in this area, because the current climate for net metering is good. Even without state regulations, the utility companies are buying solar power from homeowners.

Learn more about net metering

Georgia Interconnection Rules

Georgia Power Only

Grade: D

Georgia's Interconnection Standards grade

Georgia sadly also lacks any regulations preventing utilities from requiring redundant external disconnect switches or separate liability insurance that can unnecessarily cost residential customers money. Nor do the net metering and interconnection laws contain any safe harbor language to protect customers from unexpected fees sprung on them by the utilities.

The state gets a "D" in this area, because of Georgia Power's current interconnection policies, but without some action from the state to solidify some good poilcies going forward, we can't give a better grade here.

Learn more about solar interconnection rules

Solar Incentives in Georgia

Next to high electricity prices and net metering, solar incentives have traditionally been the most important factor for whether home solar power makes financial sense in a state. In the past, some states with otherwise lousy policy had tremendous incentives that drove down the up-front cost of going solar so much that homeowners could save oodles of money even without net metering or a good RPS.

These days, the big incentive most people can get is the Federal Solar Tax Credit that earns you 30% of your total system costs back after just 1 year. State incentives play less of a role than in the past, but some really good ones are still out there, ready to help homeowners go solar and save money before you know it.

Let's see how Georgia measures up:

The availability of state solar incentives for residential solar systems was sourced from the Database of State Incentives for Renewables and Efficiency, utility company websites, and the state public utility commission.

Georgia Solar Power Rebates

Varies

Grade: D

Georgia's Solar Rebates grade

Georgia lacks any statewide solar power rebate program. A few small utilities offer rebates, but the payments are fairly meager compared to some that we’ve seen. Let’s take a look at the rebates available:

Utility NameRebate AmountRebate Cap
Central Georgia EMC$450/kW$4,500
GreyStone Power$450/kW$4,500
Greystone Power$450/kW$4,500
Jackson EMC$450/kW$4,500

Sadly, for the many Georgia residents who use Georgia Power, there isn’t any rebate available. The numbers above are current as of 2014, but are subject to change. Our qualified local installer partners can help you navigate the process, including applying for rebates for you. Why not sign up for personalized assistance and see what kinds of incentives are available to you?

Learn more about solar rebates

Georgia Solar Tax Credits

None

Grade: F

Georgia's Solar Tax Credits grade

Georgia used to have a good solar tax credit for homeowners switching to clean solar power. The program offered a credit of up to 35% of the total installation cost, up to a maximum of $10,500. That was on par with a number of states with a strong RPS. Unfortunately, however, the program ran out of funding. Now, the only solar tax credit Georgia residents can take is the Federal Solar Tax Credit. Here’s hoping that for 2017, Georgia can come through with a new tax credit.

Learn more about state solar tax credits

Georgia Solar Performance Payments

None

Grade: F

Georgia's Solar Performance Payments grade

Performance payments in Georgia used to come from the municipal and cooperative electric utilities that purchase power from the Tennessee Valley Authority (“TVA”), but as of 2015, those incentives are no longer offered to new solar owners.

The good news is Georgia Power, the state's largest utility company, offers a performance payment scheme (of sorts). The company currently pays solar owners a rate of $0.17/kWh for all energy—more than 4 cents higher than the retail electric rate. It isn’t a traditional performance payment, and it’s not guaranteed to stay that way forever, but it is a way for those solar system owners who got in early to make back a little extra in their utility bill. See more information here.

Learn more about SRECs

Property Tax Exemption

None

Grade: F

Georgia's Solar Property Tax Exemptions grade

Even worse is the missing property tax exemption. When you install a solar power system you save money on your monthly electric bill. The savings in electricity costs translates into a boost in your home’s value. Sadly that still means an increase in property taxes here. Georgia needs to get on board with so many other states that have already done away with that albatross on residential solar power.

Sales Tax Exemption

None

Grade: F

Georgia's Solar Sales Tax Exemption grade

Georgia also lacks solar sales tax exemptions. Tax exemptions are a simple and effective way to incentivize solar power. Sales tax is 4% here, meaning a sales tax exemption would save you 4% on the purchase of your solar power system.

Learn more about tax exemptions for solar

The consensus on Georgia solar power rebates and incentives

So, what’s the bottom line? We said at the outset that Georgia is lacking in a number of important areas. In particular we really want to see a strong RPS here to keep the utilities and the politicians from continuing to get free passes while we burn more and more fossil fuels.

Sadly, Georgia no longer has the 35% state tax credit, which we’d love to see come back. With the state tax credit, the payback time was significantly shorter. The Peach State is only worthy of a failing grade for now, but with a statewide rebate program and better tax incentive package, sunny Georgia could take its rightful place among the best states for solar.

Again, if you are confused about how these numbers work and would like some personalized assistance or a quote of your own, simply connect with our network of solar experts. They’ll help sort out all the pricing, get you access to special deals, and they’re super friendly to boot!

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J A
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J A

Here is my experience living in Georgia: I bought a 22 panel system from Hannah Solar in 2016 that cost a bit under $21,000. I now use between 38-47% of the solar power generated by my house annually (varies by year). Between what I save by using my own power (kWh x Georgia Power’s price per kWh) and the Earned Distribution Credit from the power I sell back to Georgia Power, I save/earn an average of $570/year. I got a $6200 Federal tax credit on my 2016 taxes. Based on more than 3 years of records, I calculate it will… Read more »

Anonymous
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Anonymous

Harvard University is creating a program to spray the skys in the stratosphere with UV blocking chemicals.

Ben Zientara
Admin

Ok, uh… I… do you have a source for that?

Taylor
Guest
Taylor

I just read where a company from California, First Solar, is installing a 2,000 acre plant producing 200MW in Twiggs county, Ga. Construction is planned to begin in Nov, 2018. This installation is part of a new deal where The Public Service Commission required Georgia Power to add 525 MW of solar energy to their portfolio. Since Georgia Power is basically having to invest in solar, do you think this may be good news for Georgia’s inferior solar incentives? “We are committed to working with the Georgia Public Service Commission to create programs, like REDI, that help grow renewable energy… Read more »

Ben Zientara
Admin

Hey Taylor-

Unfortunately this installation—and the broader REDI program—is aimed at large-scale solar like the 200MW plant that will be built by First Solar. Georgia Power is interested in expanding its utility-scale installed base of solar to lock in low costs for solar energy. And while more solar is great, in that it will produce inexpensive, clean electricity for decades to come and replace dirty coal and gas plants, it won’t specifically benefit anyone who isn’t a Georgia Power shareholder.

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Georgia Power Marketplace Takes Customer Engagement to the Next Level – German Jamison

[…] Georgia does benefit from a lot of sun, and there are savings to be had. So it’s also possible that Georgia Power just hasn’t yet been able to figure out the […]

Esther Dickinson Jones
Guest
Esther Dickinson Jones

The local utility in Camilla, GA charge us a monthly fee of $93 over & above the normal usage because they say they can & as far as I can see they are charging an ILLEGAL FEE.

Tim
Guest
Tim

I think you should revise this very useful article, it’s one of the first Google hits when researching solar energy in Georgia. The key number in this article is the initial cost of the system of a 5Kw system and you assume that such a system will cost 20K. I think that number is highly inflated. A pallet of 20 Solar Panels at 300 watts each costs around $5670. An SMA string inverter with 6200 watts capacity costs around $2500, the inverter has an integrated fuse box and DC disconnect. An AC disconnect is less $100. The mounting hardware is… Read more »

Philip
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Philip

Let me get this right. Georgia ONLY has the federal tax credit if Im on Georgia Power? No state tax incentives?

Anonymous
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Anonymous

Very informative article post.Really looking forward to read more. Fantastic.

Anonymous
Guest
Anonymous

I just installed a 6.9KW system on my home this last week. Applied to get on the waiting list for the “Georgia Clean Energy Tax Credit”. I suspect it is a long shot and I will never see that money. Sad because I wrote to Representative Mark Hamilton which lives by me and also sits on the state energy committee for Solar energy and never received a response. Our elected officials in Georgia do not seem to be interested in generating clean energy jobs here in the state.

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