If you’re a Georgia homeowner curious about switching to solar but hesitant because of the cost, this guide is for you. We’ll break down the different incentives and programs that make solar a lot more affordable than most people think.
Residential Renewable Energy Tax Credit (a.k.a. the Federal Solar Tax Credit)
The Residential Renewable Energy Tax Credit gives you back 30% of your total solar installation costs when you file your federal taxes. It’s not a rebate check in the mail, but rather a direct reduction in your overall tax liability.
So, if your system costs $21,000, you can expect to get $6,300 off your taxes. That’s not small change. And yes, it includes more than just the panels — it covers equipment, labor, permits, and even a solar battery if you install one.
This is easily the most impactful incentive in the lineup — and that tends to be generally true no matter what state you live in.
How do you claim it? You’ll need to fill out IRS Form 5695 when tax season rolls around. If you don’t handle your taxes yourself, a tax professional or the software you use will likely take care of this solar credit form for you.
Now, there are certain conditions you’ll need to meet to qualify for this. Generally:
- You do have to owe taxes to benefit. If your federal tax bill is lower than your credit amount, the remaining balance can roll over year to year. Also, leased systems don’t qualify.
- The system must be installed on your primary or secondary residence. You won’t qualify if the solar system is installed on a rental property you don’t occupy.
- The system must be placed in service during the same tax year. In other words, your installation must be up and running in the year you’re claiming the credit.
Net Metering in Georgia
When your solar panels make more electricity than your home uses, the extra power goes back to the grid — in return, you earn energy credits that you can use to offset the cost of pulling power from the grid later on. That’s basically the idea behind net metering.
So how much could you actually earn from the extra energy your panels send back?
Georgia Power’s RNR Instantaneous Netting plan compensates customers for excess energy at the avoided cost rate plus a 4¢ bonus per kilowatt-hour. If we use Georgia Power’s 2022 avoided cost rate of 2.676¢ per kWh, that adds up to roughly 6.7¢ per exported kilowatt-hour.
The actual compensation varies depending on your specific utility provider.
Keep in mind, Georgia doesn’t have statewide net metering rules that require all utilities to offer it. So if you’re interested, the first step is to check whether your provider offers net metering at all — and if they do, you’ll need to go through their enrollment process directly.
Georgia Power’s PowerUp Lending Program
Georgia Power offers something called the PowerUp Lending Program, a low-interest loan for energy upgrades, including solar systems.
This loan offers up to $25,000 in financing with repayment terms of up to 96 months and an interest rate of 9.9% APR. It may not be the lowest interest rate out there, but it does give you an accessible, fixed-rate option that doesn’t require putting your home up as collateral.
Other utility providers like Walton EMC and Jackson EMC also offer their own Home Plus loan programs, which are worth looking into if you’re served by either one.
Energy-Efficient Mortgages (EEMs)
Buying a new home, or refinancing your current one? There’s a way to roll solar into the deal without raising your down payment requirement — and that’s through Energy-Efficient Mortgages (EEMs).
This financing option lets you borrow more money specifically for energy-saving upgrades. This means:
- You won’t need a separate loan to invest in solar
- You can bundle your solar system costs into your mortgage, spreading them out over 15 to 30 years
- You all at mortgage interest rates (which are often lower than personal loan rates).
To qualify, you can choose from major federal programs like:
- Federal Housing Administration’s EEM Program
- Fannie Mae’s HomeStyle Energy Mortgage
- Freddie Mac’s GreenCHOICE Mortgage
One thing to note: You’ll need a Home Energy Rating System (HERS) report to show the projected savings.
Energy Assistance for Sustainable Energy (EASE)
Georgia Power’s EASE program is a statewide initiative aimed at helping low- to moderate-income households reduce their energy burden. The program provides funding for energy efficiency upgrades such as:
- Insulation
- Air sealing
- HVAC improvements
- Water heating systems
- Smart device installations
As you can see, there’s no direct mention of rooftop solar or PV systems, and that’s because EASE doesn’t directly fund solar installations.
That said, the improvements EASE covers can make a home far more solar-ready. When your home uses less energy, your future solar system doesn’t have to work as hard — or be as large. That alone can significantly shrink the size (and cost) of a solar setup in the future.
Eligibility is based on household income and other criteria outlined by Georgia Power.
Residential Energy Conservation Subsidy Exclusion (Personal)
This mouthful of a name actually hides a nice little benefit. Basically, if your utility gives you a rebate for installing solar, you don’t have to report that rebate as income when you file your taxes. This is underpinned by Section 136 of the Internal Revenue Code.
So, let’s say your electric company sends you a $1,000 check after you go solar. Normally, a check like that could be taxable. But thanks to this policy, you can pocket the full amount without increasing your taxable income.
Now, Georgia doesn’t have any utility-level rebates at the moment, unlike in other states. But this exclusion still matters, because if a rebate ever becomes available from your utility, you’ll know that at least the IRS won’t be taxing it.
Final Words on Georgia Solar Incentives
Solar may seem expensive on the surface, but when you peel back the layers, Georgia homeowners aren’t stuck footing the whole bill. There’s the federal tax credit, low-interest loan programs, and tax policies that can shave down your total cost.
And one factor that’s arguably just as important for long-term savings is making sure your solar system is the right size and design for your home.
At Quote for Solar, we connect you with top-rated solar installers near you, so you can easily compare prices, quality, and options side by side. Request a quote, and we’ll send you three personalized offers from trusted solar companies we’ve personally vetted.
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