Why Georgia Is a Great State for Solar Panels in 2026

Georgia is one of the most surprising solar markets in the United States. Despite being a Republican-led state with no mandatory renewable portfolio standard, Georgia ranks 5th in the nation for cumulative solar capacity installed (SEIA, 2025). The reasons are straightforward: abundant sunshine, relatively low installation costs, and a utility (Georgia Power) that, while not required to, chooses to offer net metering—with an important caveat.

1. The 2019 Net Metering Rule Change — What It Means for You

In July 2019, the Georgia Public Service Commission approved Georgia Power's request to change its net metering policy for new customers. Here's what you need to know:

  • Customers who applied before July 2019: Continue to receive full 1:1 net metering (retail rate for exports) for 20 years. These customers see the highest savings.
  • Customers who applied after July 2019: Receive "avoided-cost" rates for exports, which are approximately 60-70% of the retail rate. This reduces savings but solar is still worthwhile.

Our calculator above lets you select which category you fall into. If you're a new customer (post-2019), the calculator automatically adjusts savings to reflect the lower export rate. This transparency is critical—many online calculators ignore this rule change and overstate savings for new Georgia customers.

2. Georgia's Electricity Rates & Savings Potential

The average electricity rate in Georgia is $0.145/kWh (EIA, 2025 data), which is slightly below the national average of $0.168/kWh. However, Georgia Power's rates have been rising steadily at about 2.8% annually since 2020, and the utility has requested additional rate increases to cover grid modernization and coal plant retirements.

With electricity prices expected to continue rising, locking in solar now protects against future rate hikes. In Georgia, a typical 9 kW system can save $1,420/year for pre-2019 customers (full net metering) and $980-1,100/year for post-2019 customers (avoided-cost export).

3. Peak Sun Hours in Georgia — Among the Best in the Southeast

Georgia receives an average of 4.8 peak sun hours per day, which is among the highest in the southeastern United States. Here's what this means in practice:

  • A 1 kW solar system in Atlanta will generate about 4.8 kWh per day, or 1,750 kWh per year.
  • A typical 9 kW system will generate about 15,750 kWh per year—enough to cover the electricity needs of most Georgia households (average consumption: 1,100 kWh/month or 13,200 kWh/year).

Georgia's peak sun hours are comparable to Florida (4.6) and significantly higher than northern states like New York (3.8) or Massachsetts (3.5). This means Georgia homeowners need a smaller system to cover their electricity needs, reducing upfront costs.

4. Solar Installation Costs in Georgia — Lower Than the National Average

The average cost of solar in Georgia is $2.55/watt before incentives (SEIA, 2025), which is lower than the national average of $2.75/watt. Several factors contribute to Georgia's lower costs:

  • Competitive installer market: Georgia has over 120 solar installers, creating price competition.
  • Lower permitting costs: Many Georgia municipalities have streamlined solar permitting, reducing overhead.
  • State sales tax exemption: Solar equipment is exempt from Georgia's 4% state sales tax, saving about $800-1,200 on a typical installation.

A typical 9 kW system in Georgia costs about $22,950 before incentives. After the 30% federal tax credit, the net cost drops to $16,065. With the state sales tax exemption, the effective cost is even lower.

5. Georgia Power's Solar Buy-Back Rate (Post-2019 Customers)

For customers who applied after July 2019, Georgia Power pays an "avoided-cost" rate for exported electricity, rather than the full retail rate. As of 2026, this rate is approximately $0.095/kWh (about 65% of the average retail rate of $0.145/kWh).

This means post-2019 customers still save money—they avoid buying electricity at $0.145/kWh when their panels are generating, and they receive $0.095/kWh for excess generation. The combination of bill savings + export credits still makes solar a good investment, but the payback period is longer (13-15 years vs. 11 years for pre-2019 customers).

6. Real Case Study: Tom from Atlanta (Post-2019 Customer)

Tom installed a 9.2 kW system in Atlanta in early 2025. Because he applied after the July 2019 deadline, he receives the avoided-cost export rate. Here are his actual numbers:

  • System cost: $23,000 (after sales tax exemption)
  • Federal tax credit (30%): -$6,900
  • Net cost: $16,100
  • Annual electricity bill savings: $1,080 (self-consumption at $0.145/kWh)
  • Annual export credit: $320 (exports at $0.095/kWh)
  • Total annual savings: $1,400
  • Simple payback period: 11.5 years
  • 25-year total profit: $18,200
  • Internal rate of return (IRR): 8.9%

Tom's case illustrates that even with the reduced export rate, solar is still a good investment in Georgia. His IRR of 8.9% beats the average stock market return (8.5%) and is far better than a savings account (0.5%).

7. Georgia Solar Incentives & Tax Credits (2026)

Georgia offers several incentives to reduce the cost of solar:

  1. Federal Investment Tax Credit (ITC): 30% of system cost, available through 2032 (step-down begins in 2033).
  2. Georgia state sales tax exemption: Solar equipment is exempt from the 4% state sales tax. This saves about $800-1,200 on a typical installation.
  3. Georgia property tax exemption: The added home value from solar panels is exempt from property taxes. This saves about $150-250/year in states with high property tax rates.
  4. Net metering (with caveats): Georgia Power and most electric membership corporations (EMCs) offer net metering, though at avoided-cost rates for post-2019 customers.

Notably, Georgia does NOT have a state tax credit for solar (it expired in 2018). However, the combination of federal + sales tax exemption still makes Georgia an attractive market.

8. Comparing Georgia Power vs. EMCs

Georgia has two types of electric utilities:

  • Investor-owned utilities (IOUs): Georgia Power is the largest, serving 2.7 million customers. Its net metering policy changed in 2019 as described above.
  • Electric membership corporations (EMCs): These are non-profit, member-owned utilities that serve rural areas. Many EMCs continue to offer full 1:1 net metering to ALL customers, making them more attractive for solar. Examples: Cobb EMC, Sawnee EMC, Jackson EMC.

If you're served by an EMC, check their net metering policy—you may be eligible for full 1:1 net metering regardless of when you applied.

9. Frequently Asked Questions About Solar in Georgia

10. Data Sources & Methodology

All calculations on this page use data from authoritative sources:

  • U.S. Energy Information Administration (EIA): Georgia electricity rates (2025), average consumption (2024).
  • Georgia Public Service Commission: Georgia Power net metering rule change (2019), avoided-cost rate schedule.
  • Database of State Incentives for Renewables & Efficiency (DSIRE): Georgia solar incentives, sales tax exemption, property tax exemption.
  • Solar Energy Industries Association (SEIA): Georgia solar installation costs (2025), market ranking (5th in U.S.).
  • National Renewable Energy Laboratory (NREL): PVWatts calculator for peak sun hours, system production estimates.

All estimates are for 2026 and subject to change based on policy updates or utility rate changes. Always consult with a qualified solar installer for a personalized quote.

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