Installing solar panels allows Georgia homeowners to take control of their energy costs while helping the environment. This guide provides a comprehensive overview of the solar landscape in Georgia and proven recommendations for maximizing savings on an installation.
The Current State of Solar in Georgia
While solar energy is expanding steadily across the state, Georgia still lags behind leading renewable energy states in solar adoption:
- 1,836 megawatts of total installed solar capacity as of 2022 (SEIA)
- Enough solar to power 525,000 Georgia homes
- Solar growth rate of +51% over past 5 years
- Still only 2.5% of Georgia‘s electricity from solar
For comparison, solar leader California has over 30 gigawatts of capacity installed – more than 16 times greater than Georgia:
Additionally, the average cost of a solar installation ranges from $2.50 in California to $2.90 per watt in Georgia based on NREL data. So prices remain higher here than more mature solar markets out West.
However, analysts project over 720 megawatts of new installations in Georgia in 2023 alone as favorable conditions like high electricity rates make solar power financial viability continue rising.
Check Your Eligibility for the Federal Solar Tax Credit
The key savings opportunity for Georgia homeowners is the federal Investment Tax Credit (ITC). This policy offers a tax credit equivalent to 30% of your capital solar expenses in 2023, dropping annually before expiring after 2034:
Federal Solar Tax Credit Amounts
| Year | Credit Percentage |
|---|---|
| 2023 | 30% |
| 2034 | 22% |
| 2035 | 0% |
To claim the credit, you must own your solar panel system rather than leasing under most circumstances. Additionally, used equipment does not qualify – all parts must be newly purchased.
For a 5 kilowatt system costing $15,000 before incentives, this tax credit would save a Georgia homeowner $4,500 instantly off their federal tax bill. With system costs steadily declining, claiming this credit in the next 1-2 years can maximize savings.
Check out EnergySage‘s Tax Credit Eligibility assessment for further details on qualification requirements before installing your panels.
Solar in Georgia By The Numbers
Here is a breakdown of typical costs and electricity bill savings associated with going solar in the Peach State using avg. utility rates:
Costs
| System Size | 5 kilowatts (kW) |
|---|---|
| Equipment Cost | $9,000 |
| Installation | $4,500 |
| Permitting/Inspection | $1,500 |
| Total Before Incentives | $15,000 |
| Federal Tax Credit (30%) | -$4,500 |
| Final Cost | $10,500 |
Savings
| Annual kWh Production | 6,975 kWh |
|---|---|
| Annual Electricity Bill Offset | $1,682 |
| Breakeven Year | 8 years |
These economics mean most solar shoppers in Georgia can expect a full return on investment in under 10 years when factoring available incentives.
Weighing Solar Loans vs Cash Purchase
Coming up with $10,000+ in cash is difficult for many homeowners interested in using the sun to slash their electricity expenses. Fortunately, going solar does not require paying the full system cost upfront.
Potential options to pay for solar panels include:
- Cash purchase – Better for maximizing long-term savings but requires large existing funds
- Credit cards / Personal loans – Also allows federal tax credit but can have higher interest rates
- Solar loans – Specialized loans tailored to green energy. Rates as low as 3-4%
Solar loans have emerged as a popular financing method that allow homeowners to pay off systems over 10-20 years. This spreads out costs over time in alignment with long-term power production.
Be sure to shop multiple lenders to compare rates and fees before deciding on how to best fund your array.
Recommended Tactics to Save on Solar
Here are my top 10 tips for Georgia residents looking to get the most affordable solar power system possible:
- Claim the 30% federal tax credit before it drops – Act now to maximize credits
- Compare quotes from 5+ installers – Pricing varies so shop around
- Buy rather than lease – Preserve ownership benefits and incentives
- Size your system correctly – Oversizing slashes savings
- Inspect your roof health first – May need repairs to support panels
- Consider adding a solar battery – Stores your excess power to reduce waste
- Get references and reviews – Ensure installer quality and reliability
- Upgrade your home efficiency first – More insulation and sealed ducts means smaller solar system needed
- Take advantage of low solar loan rates – Makes going solar affordable under $100 a month
- Support local installers – Hire solar crews with a track record in your community
Finding the right installer willing to help maximize available solar incentives is key. Be sure to get full costs and savings details in writing before signing a contract.
Over their 25+ year lifespan, even without extra state incentives, solar systems in Georgia can still provide exceptional protection against rising energy rates.
Future Outlook for Solar Policy in Georgia
While historical political opposition has blocked policy support, shifts in economics and constituent pressures mean changes may come:
- Improving voter perceptions towards clean energy, especially under 40
- Federal administration strongly supportive of renewables
- Veteran Georgia Public Service Commissioners retiring
Any future moves would need to align utilities, solar companies, legislators, and ratepayer groups – a challenging balancing act.
However, the template is clear looking at leading states. Enacting measures like 100% carbon-free power mandates with interim requirements, broader net metering reforms, property tax exemptions on solar systems, and direct rebates would greatly accelerate solar adoption if championed by a coalition of stakeholder groups.
In any case, incentives are likely to only improve in Georgia over the long term even as grid power prices rise, improving solar ROI regardless.
