Georgia Solar Power Rebates, Tax Credits, and Incentives

Georgia Solar Power Rebates, Tax Credits, and Incentives
“The Georgia Beast”

Solar Legislator Score: Georgia Solar Power Rebates, Tax Credits, and Incentives Georgia Solar Power Rebates, Tax Credits, and Incentives Georgia Solar Power Rebates, Tax Credits, and Incentives Georgia Solar Power Rebates, Tax Credits, and Incentives

Rolling hills and trees characterize most of Georgia’s residential communities. Add a generous supply of azaleas and other flowering plants to the trademark dogwood, peach tree, and magnolia blossoms, and you have a picture-postcard look at life in the heart of Dixie. It is truly beautiful. However, if you actually live in Georgia, there are times when you must deal with unwanted effects of pollen combined with an excess of air pollution. Your sinuses and lungs might occasionally beg for relief. One form of relief could come from state legislation to strongly encourage the use of pollution-reducing energy alternatives, such as solar power.

STATE LEGISLATION – Updated 7/16/08
Unfortunately there has been no legislation to promote residential or commercial use of solar energy systems in Georgia. Net metering and solar access easements (as described below) pave the way for solar power in a very limited fashion. The fact that only one (1!) Georgia customer signed up for net metering in 2005 – the most recent year of DOE net metering statistics by state – clearly shows that other incentives are necessary to get people on the solar bandwagon here.

Finally! The state of Georgia has come through and passed some groundbreaking solar legislation! According to House Bill 670 passed a few weeks ago, businesses and residences are eligible for a clean energy property tax credit. The public service commission defines “clean energy property” as any that uses solar radiation to convert energy to useful forms. So, this includes photovoltaics, solar water heating, etc. You’ve got from now until December 31st, 2012 to put your system on line to qualify. Additionally, you need to file an application with the Commissioner of Revenue. Funds will  be distributed on a first come, first serve basis from a pool of $2.5 million. The credits are administered by the Department of Revenue who can be reached at 404-417-4477. More information here.

Here’s the incentive rate schedule:

Residential installations

1. The lesser of 35 percent or $2,500 for solar energy equipment for water heating.

2. The lesser of 35 percent of $10,500 for solar energy equipment for heating applications.

3. The lesser of 35 percent or $2,000 for certified geothermal heat pump systems.

Business installations

1. The lesser of 35 percent or $500,000 for solar energy equipment for solar electric (photovoltaic),other solar thermal electric applications, and active space heating, wind equipment, and biomassequipment

2. The lesser of 35 percent or $100,000 for solar energy equipment for domestic water heating

3. The lesser of 35 percent or $100,000 for Energy Star certified geothermal heat pump systems

   
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, and UTILITY INCENTIVES

Net Metering rules have been in effect in Georgia since June 1, 2002 for photovoltaics, wind power, and fuel cells. System size is limited to 10kW for residential installations and 100 kW for commercial installations. All utility companies are included in this plan, but are obligated only to pay for excess customer-generated power to a maximum of .2% of the utility’s annual peak demand the previous year. These and other conditions relating to net metering can be found here.

Check out what David Moye from Dublin Georgia was able to accomplish as a result of the new legislation and by working with Georgia Power:

9/2/08-

We are an electrical contracting company here in Dublin Georgia are in the process of installing a 20KW system on our commercial building. I have done lots of research. Georgia Power resource schedule RNR-3 lays out the metering plans. You can either backfeed your panel and use the utility as a battery (They will pay you 4.22 cents a KWHR if you have a negative at the end of the month) It is called Bi-directional metering (fee = $4.18 a month).

We are going the other route and installing a completely seperate service and selling every single KWHR to the utility. Georgia power will pay 17.4 cents a KWHR for this system. Customers elect to pay more for their power if it is produced by renewables. We expect to get a 30% tax credit from the federal government and a 35% tax credit from the state. The remainder is a tax deduction, leaving you with about 15% of the total install cost. The only iffy in this entire deal is the Georgia Tax Credit; it is first come – first serve and they won’t review your tax form until the system is operational.

A solar access law provides for the negotiation of easements that assure owners of solar-energy systems continued access to sunlight. More information here

The Tennessee Valley Authority (TVA) offers an interesting program through participating Green Power Switch (GPS) Generation Partners. Home or business owners can sell 100% of their solar or wind power output to TVA for 15 cents per kilowatt-hour. An additional $500 incentive to help offset start-up costs is also available to residential users who qualify. Check this TVA website for more details.

EXAMPLE RESIDENTIAL SOLAR INSTALLATION

Georgia’s thriving population center of Atlanta had very humble beginnings. It was originally the 0-mile marker of a railroad that became a trade route from Georgia to the Midwestern U.S., and was known simply as “Terminus”. In the early 1840s, the fledgling community had about three dozen residents who felt a more appropriate name was required. Atlantica-Pacifica was chosen, but later shortened to Atlanta when the town was incorporated in 1847. Today, Atlanta embraces both Fulton and parts of Dekalb counties, and currently has nearly a half million people; the metro Atlanta area has about five million people, or nearly half the state’s population.

The principal electric supplier is Georgia Power, serving about half of the state’s electrical customers. Georgia’s average usage is 13,776 kWh/year at an average rate of 8.64 cents per kWh. An Atlanta resident can replace 50% of that energy use with a solar power system at an estimated net cost of $37,000 (that’s a mid-range projection for both the system and installation costs after a $2,000 federal tax credit and a $10,500 state tax credit), and 550 square feet of roof area. You may think to yourself, “My goodness, that still seems like a lot of cash I have to fork out to do the right thing for my checkbook eventually and the environment”. However, there are some great financing options available which will probably add up to the total amount you were paying before on energy usage per month anyway. To explore some of those options, request contact with one of the installers in our network by clicking the link below. 

Since the region’s solar rating is “good”, it’s about time the state legislators came through with a tax credit to encourage residential solar power installations in Atlanta or elsewhere in the state. The following advantages of installing a 3kW system should be considered (results shown are for Fulton County; DeKalb County provides slightly better financial benefits):

  • Estimated increase in property value – $9,920
  • Estimated 25-year utility savings – $20,813
  • Estimated reduction in greenhouse gases (CO2) – 141 tons

CONSENSUS

Georgia is one of the fastest growing states in the nation. Government and local utilities officials both have finally provided residential and business incentives for solar power and other renewable energy alternatives to mitigate demands on the state’s electrical capacity. Kudos! More can still be done. 

Click here to have multiple installers bid to upgrade your Georgia home or business

Read the 57 brilliant comments below or add yours!

Hiromi Tsuboi Identicon Icon Hiromi Tsuboi
Comment on January 21st, 2008.

The name of “Atlanta” is a short form of “Atlantica-pacifica”, your article says.
Why the name “Atlantica-Pacifica” is suggested for this city ?
What is the meaning of “Atlantica-Pacifica” in this case ?

I appreciate it very much if you can explain it to me.

Thank you

Hiromi Tsuboi

Eric Brock Identicon Icon Eric Brock
Comment on January 26th, 2008.

When did you last update Georgia’s rating?

Comment on January 27th, 2008.

http://en.wikipedia.org/wiki/Atlanta,_Georgia

“After a few renames, the Chief Engineer of the Georgia Railroad, J. Edgar Thomson, suggested that the area be renamed “Atlantica-Pacifica”, which was quickly shortened to “Atlanta”"

Comment on January 27th, 2008.

Couple weeks ago. Did something happen? I’ll check it out

james wolfe Identicon Icon james wolfe
Comment on April 2nd, 2008.

hello my name is james wolfe and i live in jesup ga. the reason for my comment is to say that i have a few ideas that might work for making energy, i have plenty of ideas but dont have the funds to put them together, i thought maybe you could send me some sources that maybe would point me in the right direction. sometimes i set up all night thinking about what i have out in the barn that i can use to make energy without having to use fuel, ive even blueprinted some of these ideas, i just need the materials to put them together, its killing me to know that ive got the thing worked out but cant seem to get it put together, can yall help me out.. thanks j.k. wolfe

Pingback on April 17th, 2008.

[...] Georgia [...]

Max David Rogers Identicon Icon Max David Rogers
Comment on May 12th, 2008.

Check out Southface.org for more Ga solar installations

butch deb logan Identicon Icon butch deb logan
Comment on May 29th, 2008.

butch and deb logan, to james wolfe.
we live in ga not too far from jesup we are interested in some solar power info.
any type of appliance or realistic info. really it is there for the use, why not take advantage of it.

T Foor Identicon Icon T Foor
Comment on June 4th, 2008.

i’m looking for a solar energy trade show in the north ga area…know of any good ones?

Jeff S Identicon Icon Jeff S
Comment on June 28th, 2008.

Check out this website for GA incentives:

http://www.dsireusa.org/library/includes/map2.cfm?CurrentPageID=1&State=GA&RE=1&EE=1

Comment on July 20th, 2008.

I was just in Colorado for the EcoBroker Conference and a solar provider broke it down like this:
$22,000 for system install
$13,500 rebate from Xcel Energy
$2,000 Federal incentive

That brings it down to just over $7,000 for the system which is so affordable. What’s the disconnect here? In Colorado it’s not a state incentive, it’s a requirement of the energy company to provide energy from alternative sources which comes in the way of rebates to customers supplying the energy from their homes. Is there anything like this going on in Georgia?

Thanks, Carson Matthews
http://www.TheBuckheadBlog.com

Marc Karasek Identicon Icon Marc Karasek
Comment on July 25th, 2008.

Yes, I was curious too how out west a system can be put in for $22K while here the quotes I have seen are for 2x that. Even with the Tax incentive this still does not make it affordable. A 60+ year payback, ($500 year savings x 60 = $30K). The numbers Carson quoted for Colorado of sub 10K would make it a lot better. (Payback is less than 20 Years at $500 per).

Nicholas Identicon Icon Nicholas
Comment on August 20th, 2008.

Any one know where i can find a list of power company’s who do the buyback program here in ga. Trying to do some research.

Mike Lambertson Identicon Icon Mike Lambertson
Comment on August 23rd, 2008.

Atlantic-Pacific Railroad owned the terminal and the tracks, that is where the name originated.

Dick Ryser Identicon Icon Dick Ryser
Comment on August 28th, 2008.

power is good

Tommy Bruce Identicon Icon Tommy Bruce
Comment on September 3rd, 2008.

I am a General contractor.I want to become a solar instaler. I want to find a way to make it afordable for everyone,and go into mass production with it. can you help me.

Comment on September 5th, 2008.

We at United Renewable Energy are proud to announce that one of our residential installations was the FIRST to be approved for the state tax credit by the Department of Revenue! As of this week, they have only approved $30,000 of the $2.5M slated for this year. Since there is the potential for a great deal of uncertainty surrounding what needs to be done to set up solar, we offer assistance in navigating the tax credits and utility interconnection agreements, as well as offering an excellent and dependable service. While we specialize in commercial installations of 20 kW or more, we can also give homeowners what they need to make an ROI based decision. Check out our website: http://www.u-renew.com
Please write our Georgia Senators and ask them to support HR6049.
Thanks solarpowerrocks for putting together such a great forum!

Sean Hackett Identicon Icon Sean Hackett
Comment on September 16th, 2008.

Regarding the tax credits, If you plan on taking the federal credit (deadline: Dec.’08)and the state credit, you must apply the federal credit first. Then you apply the state credit to the adjusted cost. You cannot just add the 30% fed and the 35% state and assume you will get a 65% credit. I think it ends up being a total credit of ~52%.

Also, for solar thermal (water/space heating) systems, make sure the solar panels are SRCC or FSEC rated. These are rating agencies that certify solar thermal collectors. You can also visit the SRCC website to view different manufacturers’ panel characteristics and efficiencies to make comparisons.

PHIL ALDRIDGE Identicon Icon PHIL ALDRIDGE
Comment on September 19th, 2008.

DOES ANYONE KNOW IF SOLAR POWER SYSTEMS INSTALLED PRIOR TO JULY 2008 WILL BE ABLE TO APPLY FOR THE RESIDENTIAL TAX CREDIT ?
WILL IT BE NECESSARY TO ADD TO MY SYSTEM TO RECEIVE THE TAX CREDIT. BY THE WAY, I HAVE AN OFF GRID SYSTEM THAT HAS BEEN PERFORMING BEAUTIFULLY FOR ABOUT FIVE YEARS NOW.

Comment on September 19th, 2008.

Phil, are you referring to the federal investment tax credit? You can email me directly, dave at solarpowerrocks.com

sam dilworth Identicon Icon sam dilworth
Comment on November 24th, 2008.

looking to start a sloar panel sales and service business in ga please give me some good info on getting started also some do’s and don’t and any info you can give will be used to help me get in the door

Comment on November 24th, 2008.

Just an update on the tax credits: The GA State Tax Credit has approved $500,000 out of the $2.5M available for this year. Businesses that are interested in taking advantage of the 2008 accelerated MACRS depreciation are encouraged to install this year. Residential customers are best served to order their arrays this year, but to install in early Q1 2009. This will take best advantage of the expanded federal credit, and give you the best chance at the state credit.
Contact us for details! We are always happy to answer questions.

C.A. Identicon Icon C.A.
Comment on December 8th, 2008.

So, what does that mean for the other $2 Million left on the table?

Comment on December 11th, 2008.

The remaining $2 Million will not roll over into next year. On January 1, 2009 it will reset to another $2.5M.

http://www.u-renew.com

Comment on January 13th, 2009.

Our GEFA contact has published the final tax credit allotment for 2008. Credits in the amount of approximately $950,218 were issued for all renewables in the state. This is fantastic news! It seems that Georgia has demonstrated not only an interest, but huge support for the renewable energy community.

Applications are coming in to GEFA slower than anticipated in 2009, so there are still excellent opportunities for the tax credits. Please visit our site for more details. http://www.u-renew.com

I am happy to answer any questions you may have!

Comment on January 30th, 2009.

In relation to Georgia. Walton EMC only pays 3 cents per KWH. This is the problem with Georgia from energy provider to provider. We need regulation that ensures that the electrical company is fair where the extra power going back into the grid is concerned. I pay 17 cents per KWH and they pay me 3 cents for the extra power I generate which goes back into the grid for resale at the higher rate I’m sure. where’s the fairness in this?

Ms. Ferguson Identicon Icon Ms. Ferguson
Comment on February 2nd, 2009.

I want to work in the solar power industry so I can learn the basics and get more informed about utilizing solar energy. If there is anyone who is interested in hiring a ready to learn, adaptable to any environment, skillful, full of energy and ready to inform people about the benefits of solar power. Please contact me at ccfbusiness@gmail.com

Comment on February 4th, 2009.

Mr Stubbs, you may wish to inquire about what other States are doing with Renewable Portfolio Standards at http://www.dsireusa.org in their maps section. Once Georgia adopts a standard for renewables, you will see an increase in utility participation. Please become involved with Georgia Solar Energy Association at http://www.gasolar.us/ to assist in encouraging our wonderful state to continue in its development of sustainable policy.

Pedro Moreno Identicon Icon Pedro Moreno
Comment on February 6th, 2009.

Great blog, I’m very interested in solar energy the only problem is that is not yet affordable for the middle income family, I’m looking for an investor to start up a solar module assembly line here in Atlanta GA to bring down the pW per panel.

Comment on February 9th, 2009.

Mr. Moreno, many people who are presently refinancing their homes are finding that they can work the cost of a solar array into the refinance, and then get a large portion of that money back in a tax credit! It is an excellent way to make solar accessible to everyone. You are correct, though: the current incentives favor commercial installations.

T R Identicon Icon T R
Comment on February 13th, 2009.

I don’t think this is being publicized well enough, or I’m misunderstanding. I believe the Federal Credit $2,000 cap was removed in October 2008 under the Economic Stabilization Bill. Economic Stabilization Bill Includes Clean Energy Tax Incentives
. Does anyone have new information an what this translates to in payback period and installation costs.

K. W. Identicon Icon K. W.
Comment on March 19th, 2009.

what school teaches solar installation in atlanta area or ga or fl? does florida
solar energy center course qualify a
electrical contractor to do solar installations in ga?

Comment on March 27th, 2009.

In response to TR’s inquiry: you are correct, the $2000 federal cap has been lifted for residential solar installations. Generally, it is the state based policies that have the greater impact on payback. The state of Georgia retains the $10,500 cap on their 35% credit, and few utilities offer any production based incentives. GA Power offers an excellent feed-in tariff, as do some smaller EMC’s (but not many). Please keep in mind that accepting these tariffs generally means that you do not keep the Renewable Energy Certificates (RECs). This varies by utility, and is important to businesses/individuals who are interested in being able to say that they use their clean energy on-site.
New policies are emerging in our state every day, so check back for announcements on legislative developments! On the federal side, we are seeing some hope for change as well.

Ron Lucas Identicon Icon Ron Lucas
Comment on May 7th, 2009.

I’m a builder here in Columbus GA and have an upcoming residential project coming up. Shana is your company a service type company who sells and installs solar or are you more of a consulting and info company?

Comment on May 11th, 2009.

Ron, We are Georgia’s leading Photovoltaic Installation and Integration company. We do everything PV from consulting to installs. Please visit our website, and feel free to send us an email as I try to reserve this forum for information sharing. We are here to help. Thank you!

Comment on June 23rd, 2009.

We have received several inquiries about the availability of Suniva solar panels. Suniva, Inc. is a Norcross GA based cell manufacturer. United Renewable Energy now offers URE brand panels “Powered by Suniva.” These panels are over 95% Georgia content. Georgia is certainly a wonderful state for solar these days!

Comment on June 25th, 2009.

What GA Power doesn’t tell you is that they have a cutoff for their buyback program. Once they reach a certain kW limit on systems enrolled in the buyback program, they stop buying back the FREE ELECTRICITY THEY GET from you. I think you get about $.04 for every kWh you produce as opposed to $.18 when enrolled in the buyback program.

GA Power is the greediest, most antiquated power company in the country. Your providing free electricity to the grid i.e. increasing their profits, yet they are unwilling to compensate you for that. Just another backwards policy in GA I guess.

Comment on June 26th, 2009.

The rate for the GA Power feed-in tariff is 17.74 cents. They have reached their statewide limit of 500 kW for this program, but are accepting applications to receive this rate when more funding is available. http://www.u-renew.com/pdf/GA_Power_Waiting_List.pdf

This program is presently set at a net metering rate. This means that up to your power bill total dollars for the year, they will credit you whatever you pay them per kWh: which is 9+ cents for most residences. Net metering is the standard minimum in the state of Georgia. Several states do not even offer this.

The 4-5 cents is the rate for their offset costs, which kicks in when your solar production goes over your net power bill for the year. Most houses can’t fit that much solar on their roof anyway!

It is important to note that when accepting the feed in tariff rate of 17.74 cents, Georgia Power is also purchasing your RECs.

Every utility differs in how they handle interconnection.

Hope this helps clarify!

Comment on June 26th, 2009.

Shana,

Thank you again for your continued presence on our comment threads. We’re sure all our readers have gleaned a lot from you.

Cheers,

- Dan

Pingback on June 27th, 2009.

[...] Georgia [...]

D.Clayton Identicon Icon D.Clayton
Comment on July 2nd, 2009.

I am wanting to set up a 500kw solar farm. What can I expect as far as incentives for this type of system? What would Ga Power pay me per KW. Many solar panels in a field tied directly to the grid.

Comment on July 15th, 2009.

Mr. Clayton,
Typically, most solar installations in Georiga are for existing utility customers who wish to cover a portion of their own power bill. In order to install a power producing farm with GA Power, you would be required to negotiate with them directly. GA Power does not have an established rate for individuals interested in supplying their grid with renewable energy. However, we can assist you with a strategy for your project.

Comment on August 5th, 2009.

Many people are curious about the news that the PSC has raised the GA Power (17.74 cent) feed-in tariff cap to 1.5MW. This is true, the PSC has given GA Power permission to increase their cap, but GA Power has not yet released the actual numbers. Please sign the petition below to encourage GA Power to keep with their support of renewable energy in the South!
http://www.thepetitionsite.com/1/gge-tariff-wattage-increase

J.G. Identicon Icon J.G.
Comment on August 5th, 2009.

Does anyone know what the licensing and permitting requirements are for GA? I called the licensing board and they referred me here.

Comment on August 17th, 2009.

J.G. depending on the size of the solar array: an licensed electrician is required at minimum. Every city differs in their requirements, so please check with your local authority. NABCEP certification is what we recommend when choosing an installer. It is a voluntary certification that ensures your installer has the requisite experience, standards and skill to properly install solar PV. http://www.nabcep.org/

Comment on August 31st, 2009.

NABCEP certification training coming to Georgia. Starting January, 2010 Lanier Technical College in Alpharetta will be offering an 8 week PV Installation class preparing students for the NABCEP BASIC PV certification exam. Long-time solar pro Will Silva is on the faculty.
More info at http://laniertech.edu

Comment on September 17th, 2009.

Hi,

We are a reputable solar company (or so we try) here in Georgia and want to get the word out about our business and become a listed solar professional with your site. Let me know what we can do to get on the list, or how we can help your subscribers.

I’ll keep an eye on your posts and try to be a resource for people inquiring.

Thanks,
Steve Chiariello
Inman Solar
404 502 1915

Comment on September 18th, 2009.

Now is the time to start planning for the National Solar Tour & Festival, sponsored by your local ASES chapter. On October 3rd, solar sites all across Georgia and the nation will be opening their doors to speak to visitors about the solar on their roof. Please visit http://www.gasolar.org/georgiasolartour.html for more details. This is your chance to learn firsthand about solar from actual owners. Maps, ASES memberships and virtual tours will be available online with the purchase of a ticket. Come out to learn, explore and have some fun!

Cindy Hamlin Identicon Icon Cindy Hamlin
Comment on October 27th, 2009.

Shana -
I am interested in how much of the annual 2.5 million Georgia tax incentive has been used to date. Where do you find the information?

Comment on November 2nd, 2009.

Cindy, You can visit the following url: https://etax.dor.ga.gov/ and scroll down to “News & Press Releases”. There, you will find a link to “HB670 Clean Energy Property and Wood Residuals Tax Credit”. Please click on that link for the current report of pre-approved and available funds. Please keep in mind that this information is subject to a minor delay, as it is not an actual reflection of the applications received to date, only the funds that have been pre-approved at time of publication.

Comment on December 29th, 2009.

Shana,
I would like to know if there are any employment opportunities in North Georgia in this emerging field. I am a Professional Commercial Driver looking for a change and would like to get into this field. Any information or direction would be appreciated.
Thanks.

Dave Identicon Icon Dave
Comment on February 3rd, 2010.

Shana – I want to try and get my local school to install a large rooftop system. Would it qualify for fed and state credits? What would the school be credited for each kW of power it created? Could it be set up so the school saves money on a monthly basis while paying off the loan for the panels? Finally, if the whole school district did it, could they qualify as a carbon offset and get some polluting company to pay off their loans? Thanks Dave

Comment on February 4th, 2010.

Dave,

Great idea! The short answer is: it depends on quite a few variables.

We would have to discuss your particular situation more deeply. If you would like to send me an email, you can click on my name above and fill out the form at the bottom of my webpage. I will post relevant answers to the blog as a follow-up.

Oh! And we just commissioned the largest commercial array in the state! Check it out! http://u-renew.com/news/?p=99

Comment on February 5th, 2010.

I just wanted to thank you for providing this website and the great resources it provides. As a solar installer in Georgia, I have received a tremendous amount of information from this site that I’m able to pass along to my clients.

One of the best resources I’ve seen is the DSIRE website…for whatever reason, I can no longer access the site. Does anyone know what the problem is?

Comment on February 5th, 2010.

Thanks for the shout out.

http://www.dsireusa.org/solar is a tremendous resource for rebate information for every state and utility. I think it was down for some reason yesterday, but it seems to be working now.

Thanks for commenting.

Ronald Monty Identicon Icon Ronald Monty
Comment on February 22nd, 2010.

I was contemplating a solar electric system on my house in Stockbridge, GA.

Nothing is being said about what the annual maintenance of these systems would be or what needs to be done.

Comment on February 23rd, 2010.

Ronald,

There is very little maintenance to solar PV (electric) systems because there are no moving parts. Rain should keep the panels nice and clean, although if you live in a dusty area or one with a lot of birds, you should take an extended window squeegee and mop with warm water and wipe them off once every couple of months.

The only thing that can go wrong after 10 to 15 years is the Inverter. More about that here. Otherwise, it really is a safe and reliable system if properly installed.

J Barnes Identicon Icon J Barnes
Comment on June 18th, 2010.

I live in Oglethorpe County and receive power from Rayle EMC. I am looking at a grid-tie system with net metering. I built our home with the back facing south for future solar applications. I did not see that Rayle EMC participated in net metering or the buy back program? Are all power companies in GA reqrired to, or am I out of luck? Thanks JB

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