How to Save Money on Solar Panels in Georgia: A Complete Guide
Are you a Georgia homeowner interested in going solar but unsure about the costs and financial benefits? You‘re not alone. The Peach State has seen rapid growth in residential solar installations in recent years, thanks to falling prices and the increasing affordability of solar technology. However, Georgia lacks some of the robust state-level incentives that have turbocharged solar adoption in other parts of the country.
The good news is that there are still significant opportunities to save money when going solar in Georgia. By taking advantage of key incentives like the federal tax credit, exploring solar financing options, and choosing a reputable installer, you can minimize your out-of-pocket costs and maximize long-term savings on your electricity bills.
In this comprehensive guide, we‘ll break down everything you need to know about making solar a smart financial decision for your home in Georgia. Let‘s get started!
Slashing Costs with the Federal Solar Tax Credit
The single biggest incentive currently available for solar shoppers in Georgia is the federal solar investment tax credit (ITC). This program, which has been extended by Congress through at least 2032, allows you to deduct 30% of the cost of your solar installation from your federal taxes.
For example, if your solar panel system costs $20,000, claiming the ITC would save you $6,000 right off the bat. The 30% tax credit is available for both residential and commercial solar installations, as long as you own the system outright (more on that later).
There are a few key requirements to keep in mind in order to be eligible for the solar ITC:
- The solar PV system must be located at your primary or secondary residence in the United States.
- You must own the solar panel system (i.e. you purchased it with cash or through financing)
- The solar panel system must be new or being used for the first time. The credit can only be claimed on the "original installation" of the solar equipment.
If you‘re considering a solar installation in Georgia in the next few years, the federal ITC should be a central part of your cost-saving strategy. Consult a tax professional to learn more about how to claim the credit.
Finding Local Utility Rebates and Incentives
Another potential source of savings on solar in Georgia is through rebates and incentives from your utility company. Unfortunately, pickings are relatively slim compared to states that have passed more aggressive clean energy policies.
Georgia Power, the largest utility in the state, does not currently offer any upfront rebates for customers who install solar panels. However, some of the smaller municipal utilities and electric membership cooperatives (EMCs) serving Georgia offer modest rebate programs.
For example, customers of Jackson EMC can receive a one-time rebate of $450 per kilowatt (kW) for solar panel installations up to 6 kW. Sawnee EMC offers a rebate of $400 per kW for systems up to 10 kW. Be sure to check with your local utility to see if any solar rebates are available.
Net Metering: The Key to Solar Savings in Georgia
Perhaps the most important solar incentive to understand in Georgia is net metering. Net metering refers to a billing arrangement where solar customers can send excess electricity generated by their panels back to the grid in exchange for credits on their utility bills.
When your solar panels produce more electricity than your home is using (like during sunny afternoons), that excess energy flows back to the grid and your meter actually runs backwards. Then, during times when your solar panels are not producing enough electricity to meet your needs (like at night or on cloudy days), you can draw energy from the grid and use those credited kilowatt-hours to offset your usage.
Georgia Power does offer a limited net metering program for residential solar customers, but it comes with some restrictions. The program is capped at 5,000 participants and that cap was reached in 2021, meaning no new customers can sign up.
Under Georgia Power‘s net metering program, solar customers are credited at the "avoided cost rate" for excess electricity sent to the grid, which is lower than the retail rate. Customers are also required to pay a one-time interconnection fee and install a special bi-directional meter.
Other utilities in Georgia may offer their own net metering programs with different terms. Cobb EMC, for instance, offers net metering for solar systems up to 10 kW and credits excess generation at the full retail rate.
Expanding access to net metering has been a priority for clean energy advocates in Georgia. A more robust statewide net metering policy would ensure that solar customers are fairly compensated for the electricity they generate and make solar an even better investment.
Evaluating Solar Financing Options
Another key factor in making solar affordable in Georgia is choosing the right financing option for your needs and budget. There are three main ways to pay for a solar installation:
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Paying in cash: Buying your solar panel system outright with cash will provide the highest return on investment and the quickest payback period. You‘ll own the system from day one and reap all the financial benefits, including the federal tax credit.
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Solar loans: Many Georgia homeowners choose to finance their solar purchase with a loan, allowing them to avoid the upfront cost and spread payments out over time. Solar loans are offered by a variety of banks, credit unions, and specialized lenders. Be sure to compare interest rates, loan terms, and fees to find the best deal.
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Leases and power purchase agreements (PPAs): With solar leases and PPAs, a third-party company owns and maintains the solar panels on your roof. You simply pay them a fixed monthly amount for the electricity generated. While this can be a good option for homeowners with limited upfront capital, leases and PPAs generally provide much lower cost savings than owning your own system. You‘ll also miss out on incentives like the federal tax credit.
In general, paying in cash or financing with a solar loan will provide the most long-term savings and flexibility for Georgia homeowners. Talk to your solar installer about the financing options they offer and be sure to compare multiple options before signing on the dotted line.
Choosing the Right Solar Installer
Your choice of solar installer can also have a big impact on the overall cost and performance of your system. Georgia has a robust and competitive solar market, with both local companies and larger national installers offering their services.
As with any major home improvement project, it‘s a good idea to get quotes from multiple solar providers and compare their offers. Key factors to consider include:
- Pricing and financing options
- Quality of equipment (panels, inverters, mounting)
- Warranties and maintenance plans
- Experience and track record
- Customer reviews and satisfaction scores
Some Georgia homeowners prefer working with a local solar company that has deep roots in the community and knowledge of the local market. Others may prioritize the scale and resources of a major national installer. There are pros and cons to both approaches.
Whichever route you choose, be sure to do your homework and select an installer with a proven track record of quality work and customer service. A well-designed and properly installed solar array will provide reliable performance and energy savings for decades to come.
Optimizing Your Solar Installation
Once you‘ve selected your solar installer and financing method, there are a few key steps you can take to get the most out of your investment:
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Choose the optimal location and orientation for your panels. For most Georgia homeowners, this means a south-facing roof with minimal shading from trees or nearby buildings. Your installer can use modeling software to determine the ideal layout for your panels.
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Opt for high-efficiency equipment. Solar panels continue to get more efficient every year, meaning they can generate more electricity from the same amount of sunlight. Choosing high-efficiency panels can help maximize your energy production and cost savings over time.
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Consider energy efficiency upgrades in tandem with your solar installation. The less electricity your home uses overall, the more of your energy needs can be met by your solar panels. Upgrades like LED lighting, insulation, and efficient appliances can help reduce your electricity usage and amplify your solar savings.
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Take advantage of energy monitoring and management tools. Many solar installers now offer software and apps that allow you to track your solar production and usage in real-time. This can help you optimize your energy consumption and identify opportunities for further savings.
The Future of Solar in Georgia
While Georgia has made significant strides in solar adoption in recent years, there is still much room for growth. The state currently lacks a mandatory Renewable Portfolio Standard (RPS), which would require utilities to source a certain percentage of their electricity from clean energy sources like solar.
Implementing an RPS and expanding access to net metering have been priorities for clean energy advocates in the state legislature. With the right policies in place, Georgia could unlock even greater solar potential and make it easier for homeowners to save money by going solar.
At the federal level, the extension of the solar tax credit through 2032 provides a stable incentive for homeowners considering solar. However, additional support like a national clean energy standard or direct grants for residential solar could further accelerate adoption.
Conclusion
Going solar is a smart financial move for many Georgia homeowners, even without the robust state-level incentives available in some other parts of the country. By taking advantage of the federal tax credit, choosing a reputable solar installer, and exploring financing options like solar loans, you can minimize your upfront costs and enjoy decades of savings on your electricity bills.
As solar technology continues to improve and costs keep falling, the case for going solar in Georgia only gets stronger. With a little research and careful planning, you can join the growing ranks of Peach State homeowners who are harnessing the power of the sun to save money and reduce their environmental impact.
So what are you waiting for? Start exploring your solar options today and take the first step towards energy independence and long-term savings.
