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

The Best Way to Get Solar Leads Now That California’s Boom Has Ended

California has long been America’s biggest solar market, providing the lionshare of installations and driving past surges in demand. However, that’s all about to change. The rollout of NEM 3.0 puts the Golden Era to a stop on April 15th.

Why are California’s Contractors Expecting a Slowdown?

California’s solar customers have long enjoyed net metering benefits that made rooftop systems a strong investment with quick returns. But after the CPUC officially approved the new NEM 3.0 program, those subsidies have been marked for the chopping block. 

As of now, any customers who complete and submit interconnection applications to their utilities will be subject to the new NEM 3.0 terms, which will slash compensation rates by about 75%. This severe cut will slow down the payback time for solar, turning what was once a 5-6 year period into one as long as 10 years. 

Forecasters are expecting NEM 3.0 to cause a 3% market contraction next year, with California installations diminishing by 38%. These projections are causing a state of panic throughout the industry, causing many to pressure the CPUC to pause the program’s kickoff. But so far, there’s no sign of stalling. 

How Can Contractors Source High-Quality Solar Leads Now?

The changing landscape of California’s solar market will require contractors to be more resourceful in how they generate their leads. The new focus should be on finding leads that have already proven their commitment to going solar, allowing installers to avoid investing too much time in customers who are likely to be scared off by the new NEM rates. 

Working with the right solar marketing agency makes all the difference in finding these high-security leads. Countless California contractors have chosen Grid Freedom as their most trusted source of steady customers, relying on the agency’s thorough screening process to yield only the most promising opportunities. 

All Grid Freedom leads are fully qualified and confirmed for their first consultation appointment. Their interest and readiness has already been verified by a live agent, who has discussed their plans and goals with them in detail. This gives installers the best possible preparation for making a sale, especially in a market where customer hesitance will be at its highest. 

Every lead is offered under fully exclusive terms, with no contracts, purchase minimums, or extra fees. Contractors can simply order the number of leads they need at any time, and come back whenever their organic leads are running low again. It’s the perfect backup in a time of unstable demand.

Find a Steady Supply of Confirmed Solar Sales Leads at www.GridFreedom.com