Your 2020 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!
** What's new for 2020 **
A last-minute rule change allows the next 5,000 homeowners who apply to get monthly net metering from Georgia Power. Unfortunately, they also affirmed the right of GP to revert to instantaneous net metering once those 5,000 folks get theirs, which is kinda silly. While we'd expect more from lawmakers here, two pro-solar candidates for the Public Service Commission were defeated by establishment candidates. While that certainly was a setback for more progressive home solar policy, there's still a compelling case to install solar on your home, as the returns are solid considering the level of sunshine blanketing the state over the year.
In 2020, we'd like to see a much stronger push and debate in the Georgia state capitol for an updated renewable portfolio standard. 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 policy, incentives, and investment returns for home solar power 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.
What you'll find on this page:
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 Georgia Solar Strategy|
|Comparing Solar Investment Options|
|Paying Cash for Solar in Georgia|
|Solar Loans in Georgia|
|Solar PPAs in Georgia|
|Solar Purchase Payback Time in Georgia|
|Georgia Solar Policy Information|
|Renewable Portfolio Standard (RPS)|
|RPS Solar Carve-Out|
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 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.
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!
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
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.
Georgia's Solar carve-out and SRECs
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.
Georgia Electricity Prices
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.
Georgia Net Metering
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.
Georgia Interconnection Rules
Georgia Power Only
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.
Georgia Solar Incentives
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 26% 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
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 Name||Rebate Amount||Rebate Cap|
|Central Georgia EMC||$450/kW||$4,500||GreyStone Power||$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?
Georgia Solar Tax Credits
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 soon, Georgia can come through with a new tax credit.
Property Tax Exemption
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
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.
Low-income Solar Programs
Grade: FLearn more about low-income solar programs available in the U.S.
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!