How Much Do Solar Panels Cost in Georgia? (2023 Savings Guide)
By Karsten Neumeister /
In this guide to making solar conversion more affordable in Georgia using solar incentives, you’ll learn:
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Yes, absolutely. Solar is relatively expensive in the area due to the high energy demand, but the solar incentive programs available in Georgia help make converting to clean energy far more accessible.
The typical upfront cost of a solar panel system in GA hovers around $28,050, around $4,000 higher than the national average. The average price per watt for photovoltaic (PV) equipment in the area is $2.55, which is below the U.S. average.
The high all-in price tag is due to the larger system requirements to meet local energy use. Most residents need an 11 kilowatt (kW) system to offset utility bills and energy costs, whereas the average American needs just 9 kWs worth of PV equipment.
Unfortunately, the state lacks a Renewable Portfolio Standard (RPS) goal, which many states use to promote clean energy and the adoption of related equipment like PV panels. As a result, the Peach State also has far fewer incentive programs available than most other states.
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In the table below, we’ll include all of the incentive programs available for solar conversion, along with a description of how they work and the average savings they yield.
Solar Incentives in Georgia | Incentive Type | Description | Occurrence | Estimated Dollar Amount You Can Receive |
Federal Solar Investment Tax Credit (ITC) | Federal | Provides a credit to your income tax burden for 30% of your total system cost | One-time: Gets applied once when you file your taxes following solar panel installation. Unused credit can be rolled over for up to five years | $8,415, on average for an 11 kW system |
Solar Easement Laws | State | Ensures you maintain unimpeded access to the solar energy that would normally hit your property | Always in effect: These laws guarantee that you always maintain access to solar energy | Varies based on sunlight obstructions and many other factors |
Net Metering | Local | Provides bill credits for excess energy produced by your panels that gets sent to the grid. Net energy metering is not guaranteed in the state | Always in effect: Provided net energy metering is offered by your utility company, you’ll always be eligible to earn energy credits through the program | Varies based on your system size, your monthly energy bills and more |
Local Incentives | Local | Some local utility companies offer incentives to customers for converting to solar energy | Varies based on the incentive | Varies based on the incentive |
In our opinion, the federal tax credit is one of the best perks for solar customers across the country, regardless of the state incentives available to them. It’s offered by the federal government, so it applies to all homeowners. It’s especially useful in areas like Georgia, where there are no universal incentives offered by the state.
The credit was initially provided in 2005 as a means of making solar adoption more affordable. At that time, it offered a credit to one’s tax liability for 30% of the entire system value installed — including panels, inverters, solar batteries and more. The credit rate was originally scheduled to drop to 26% in 2022, 22% in 2023 and 0% in 2024.
In 2022, Congress signed the Inflation Reduction Act (IRA), which, among other things, improved the federal credit. It pushed the rate for 2022 installations back up to 30% — retroactively — and extended the credit for a decade. The new rate schedule is listed below:
Given the average solar system cost of $28,050 in Georgia, the 30% credit usually comes out to $8,415. You can save that much on your tax bill if you owe enough to cover the credit, which effectively brings down the cost of your system. Any unused credit can be rolled over to four additional tax years for a total of five years.
Claiming the federal credit is straightforward and usually only takes a few extra minutes when you’re filing your taxes. If you use software like TurboTax to file, just answer accordingly when prompted about installing renewable energy equipment or converting to solar. If you file manually or through an accountant, you can follow the below steps to take the credit.
As mentioned above, we’re huge fans of the federal credit in general, but especially in your area, where other incentives are severely lacking. The federal credit offers a great way to effectively make solar more affordable, and it stands out as an imperative perk to take in areas where there are few or no other benefit programs, like in the Peach State.
With an average credit value of nearly $8,500 and an application process that takes just a few minutes, this provides the best bang for your buck in terms of potential savings from going solar.
It’s crucial to understand that this is not a solar rebate, so you’re not guaranteed to get that credit value back. You’ll only get as much as you owe on your income taxes up to the credit value. That means if you don’t expect to owe at least $1,700 per year in taxes for the next five years, you won’t be able to take advantage of the full credit.
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Solar easement laws protect the rights of solar customers to access the sunlight that normally hits their properties. They prevent neighboring property owners from obstructing that sunlight, which means neighbors could be forced to keep trees trimmed, and commercial properties nearby cannot build structures that block sunlight from your roof.
Solar easement laws don’t provide any direct financial benefit. However, they are a sign that a state cares about solar and takes an interest in renewable energy as a whole.
Plus, in some cases, these laws can lead to an increased duration of sunlight exposure for your solar power system. Some benefits of this include:
Thankfully, the solar easement laws are innate, so you never have to do anything to claim them. If you run into an issue with a neighboring property blocking your access to solar energy, you can contact your local building department to intervene on your behalf.
Solar easement laws are a great thing to have in place. They help establish renewable energy sources as legitimate and worthwhile alternatives to fossil fuels like natural gas, and they help increase the value of PV equipment.
Unfortunately, they don’t provide any direct savings for most property owners.
Net metering is a billing policy that monitors energy flowing to your property from the grid and from your solar system to the grid. Any excess energy you generate earns you billing credits, which you can use later on to bring down your electric bills if you ever pull more from the power grid than you send — like during cloudy weather or at night.
According to the Solar Energy Industries Association (SEIA), net energy metering (NEM) has historically been one of the most beneficial perks for solar customers. It helps reduce costs in several ways:
Unfortunately, NEM is not mandated by the Georgia Public Service Commission (PSC), which means utility providers are not required to offer it to customers. Some electric companies still do, though, so you should check with yours to confirm eligibility before going solar.
For example, Georgia Power has a behind-the-meter option, which is a buyback program that’s similar to net energy metering. However, the program filled up in 2021 and is not currently accepting new applications.
We should also mention that residents in many states throughout the U.S. are seeing net energy metering programs become less and less beneficial. Some states are adopting a credit rate that’s below the retail rate, while others are ditching the policy altogether.
It’s possible that a net metering program in GA will be mandated in the future, but it’s unlikely, given the direction the program is going in other states.
Enrolling in net energy metering is automatic for most homeowners that choose a reputable solar installer in Georgia, as a representative will typically file the application for you as a representative will typically file the application for you. You can follow the steps below, though, to make sure you get access to the program if it’s available.
Net energy metering is an outstanding policy that is hugely beneficial to solar customers. This is especially true in states in the southern part of the country, where long, hot summers lead to above-average electricity consumption.
We’d love net energy metering even more if it were mandated throughout the state, but we don’t expect to see that any time soon or in the foreseeable future.
Along with a lack of statewide perks, there are relatively few local incentives as well. We’ll include some information on the benefit programs that are offered by local municipalities and utility companies below.
We’ve mentioned all of the perks available for local solar adopters above, but not all of these are equally worthwhile. We’ll include what we believe are the top three incentives below.
The federal solar tax credit is far and away our favorite benefit program and the one we’d recommend taking over all others if you had to choose. It provides the most substantial potential savings — an average of over $8,400 — and takes just a few minutes to apply for.
Perhaps most importantly, this credit is available to all residents, which is not the case for nearly all of the other perks available in the area, including net energy metering.
NEM is another great perk to take if it’s available to you. It helps increase the value you see from your panels by maximizing your energy savings. In turn, it helps pay off your system more quickly.
Unfortunately, this perk is not universally available in the state, as it’s not mandated by the PSC. Still, if it is available to you, we strongly recommend taking it, as it can help push your total savings closer to the average of $23,182.
Finally, the local rebate offered to Jackson EMC customers is one of the best available in the state. Although it’s only accessible by a relatively small subset of residents, it provides an average of $2,500 in effective savings and doesn’t take long to apply for.
Unfortunately, there is no plan in place that will make incentives in the area better or more readily available. The state still has not set an RPS goal, which is very often the catalyst for new incentives or making the existing ones more appealing.
Unless the state sets an aggressive RPS goal in the near future, we don’t expect any improvement to incentive programs.
In the sections below, we’ll answer some questions you may have about perks and benefit programs that we see commonly from other prospective solar customers.
At this time, there is no plan or piece of legislation in the works to increase solar perks in the next two years. If the state sets an RPS goal, then there’s a distinct possibility that new benefit programs will pop up and push the local solar industry forward. In our opinion, this is not likely to happen in the next two years.
The IRA made one important change to the federal credit and one to the rebate programs for electric vehicles (EVs).
First, it extended the federal solar credit program by ten years and pushed the credit rate for systems installed in 2022 up to 30% from 26%. It also extended the 30% credit rate through 2032.
Additionally, the IRA boosted the potential EV rebate to $7,500, depending on the specific vehicle being purchased. Calculate how much you could save with our IRA Calculator.
The state doesn’t have any statewide incentives that it could reduce, so no, there won’t be any major reductions to perks in the next two years. The federal credit is set in place for another ten years, and there is no plan to decrease local incentives at this time.
Solar Renewable Energy Certificates (SRECs) are credits earned for each kilowatt-hour (kWh) of electricity produced by your panels. SRECs can be sold on an open market for a profit to pay down your system costs or maximize overall savings.
Unfortunately, there is no local open SREC market, so SRECs are unavailable to Georgians at this time.
Unfortunately, no, the state does not offer a property tax exemption for PV equipment. That means that your property taxes are expected to go up as a result of converting to solar.
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