How Will Georgia's Net Metering Cut Impact the Solar Market?

 

Back in 2020, the Georgia Public Service Commission (PSC) created a pilot program enabling 5,000 residential solar customers to sign up for energy buy-backs. Though this program is not technically considered net metering, it is similar enough to be treated as such by the solar industry. 

There was much anticipation toward the end of 2022 that the PSC would choose to expand this program, giving more of Georgia Power's 2.4 million+ utility customers the opportunity to receive compensation for their excess solar energy generation. However, the PSC declined to broaden the program, instead making changes that would negatively affect the small group of customers enrolled. 

New Changes Decrease Savings

Not only did the PSC say no to program growth, but they have also imposed a new $100 interconnection fee. This is actually an improvement on the fee Georgia Power had originally proposed, which was $200. Additionally, the PSC has announced a rise in rates charged to all electricity customers. This increase is forecasted to be as high as 12% in just three years’ time. 

Under the program’s new rules, Georgia Power is supposed to pay 6.68 cents per kWh to solar owners, but only after they have paid the full retail rate for the electricity they’ve consumed. This is quite a difference from the original arrangement, where the compensation was automatically subtracted from the customers’ monthly bills. Now, they must pay upfront before seeing any returns - which will only be diminished.

Is Hope on the Horizon?

The Georgia Homegrown Solar Act of 2023 (SB 210) was just introduced by Senators Jason Anavitarte, Randy Robertson, Chuck Hufstetler, Sonya Halpern, and Ed Setzler. This bill would raise the program cap from 0.2% of annual peak demand to 5%, increasing the number of homeowners who could enroll. The system size cap would be raised from 10 kW to 15 kW, and a 20-year grandfathering right would be extended to customers who adopt a net metering agreement. 

Finally, the bill calls for all fees imposed on solar customers to “be just, reasonable, and nondiscriminatory”, “be based on the actual cost of providing the service for which the fee is imposed”, and “apply to other customers in the same customer class, including customers that are not customer-generators”.

Should this bill be successfully passed, Georgia’s power market would be far friendlier toward residential rooftop solar owners. Other provisions in the bill lower the potential for customer exploitation, and even widen opportunities for community solar. However, the bill still has a long way to go. The next step of the approval process will take place when the bill is presented to the Georgia Senate Regulated Industries and Utilities Committee.

In Summary: Georgia’s Contractors May See Fewer Solar Appointments This Year

Without the opportunity to sign up for net metering compensation, fewer homeowners are going to be sold on the investment value of solar. Electricity price hikes will continue to be a driver of demand, but as long as anti-solar policies continue to hold, contractors will face more obstacles in persuading customers. 

Fortunately, there’s help for meeting homeowners who are already convinced. Grid Freedom provides contractors qualified solar appointments with residents that have passed live screening for the best sale prospects. Find ready-to-meet customers in Georgia and the rest of the nation, with no marketing or lead nurturing needed. 

Sign Up for Qualified Solar Appointments at www.GridFreedom.com