Exploring Commercial Solar Incentives Available in Georgia
Curious about commercial solar in Georgia and available rebates and incentives for your business to take advantage of? Georgia is an attractive state for businesses looking to invest in solar energy, thanks to a number of commercial solar incentives that can help offset the cost of the initial investment. In this article, we’ll explore some of the key incentives available to businesses in Georgia, and explain how they can help make the transition to solar energy more affordable and beneficial.
The Federal Investment Tax Credit (ITC)
One of the main incentives available to businesses in Georgia is the Federal Investment Tax Credit (ITC), which allows businesses to claim a credit equal to 30% of the cost of their solar energy system thanks to the new Inflation Reduction Act. This credit was set to gradually decrease over the next few years, with the full credit only available for systems placed in service before the end of 2023, however it has been extended to 30% into the next decade.
The Georgia Solar Energy Tax Credit
In addition to the ITC, businesses in Georgia can also take advantage of the state’s Solar Energy Tax Credit. This credit allows businesses to claim a credit equal to 35% of the cost of their solar energy system, up to a maximum of $500,000. The credit is available for systems placed in service before the end of 2022.
Net Metering in Georgia
Another incentive available to businesses in Georgia is net metering, which allows businesses to sell excess solar energy back to the grid, earning credits on their energy bills. This can help businesses to offset the cost of their solar panel installation, and can also help to reduce their reliance on the grid.
In Georgia, net metering is available to businesses with solar panel systems that are up to 25 kilowatts (kW) in size. The excess solar energy that is generated by these systems is credited to the business’s energy bill at the retail rate, which is the rate that the business would normally pay for electricity from the grid. If the credits earned by the business exceed their energy bills for the month, the excess credits are carried over to the next billing period.
Net metering can be a particularly beneficial incentive for businesses that generate more solar energy than they need, as it allows them to sell the excess energy back to the grid and earn credits on their energy bills. This can help to offset the cost of their solar panel installation, and can also help to reduce their reliance on the grid.
Renewable Portfolio Standard (RPS) in Georgia
Georgia’s Renewable Portfolio Standard (RPS) requires utilities to generate a certain percentage of their electricity from renewable sources, including solar. This helps to create a market for solar energy in the state, and can make it more financially viable for businesses to switch to solar.
Under Georgia’s RPS, utilities are required to generate a minimum of 6% of their electricity from renewable sources by 2021. This requirement will gradually increase over time, with the goal of reaching 18% renewable energy by 2036.
The RPS can be a beneficial policy for businesses in Georgia that are interested in using solar energy, as it helps to create a market for solar energy in the state. By requiring utilities to generate a certain percentage of their electricity from renewable sources, the RPS helps to encourage the development of new solar energy projects, and can make it more financially viable for businesses to switch to solar.
In conclusion, there are a number of commercial solar incentives available in Georgia that can help businesses to offset the cost of installing solar panels. These incentives, combined with the state’s abundant sunshine and the potential cost savings and environmental benefits of solar energy, make it an increasingly attractive option for businesses in the state.
For more information on the commercial solar incentives available in Georgia, be sure to check out the Database of State Incentives for Renewables and Efficiency (DSIRE).