Georgia Power has agreed to buy more power from solar-equipped homes and businesses as part of its plan to boost the amount of solar power it sells, the utility told regulators Thursday.
At the urging of state solar industry groups, the Georgia Public Service Commission staff had recommended the change in the utility’s plan, saying more Georgians will invest in solar panels if they can sell some of the power to the utility.
Georgia Power appeared before the PSC to respond to the request. The utility plans to increase the amount of solar power it distributes to customers by 10 times the current amount, buying the renewable fuel mostly from large solar farms.
The utility has agreed to buy 30 megawatts a year for three years from solar-equipped residences or businesses, triple the amount originally planned. It plans to buy 60 megawatts a year for two years from solar farms.
One megawatt can power a department store or 450 homes.
Even when the plan is in place starting next year, solar will remain a tiny part of Georgia Power’s output. But the utility said falling prices for solar equipment have made the alternative power more economically feasible.
Georgia Power has been criticized for being late to the solar game.
One new company, Georgia Solar Utilities, has asked state utility regulators if it can start building solar farms and selling the renewable fuel directly to customers.
Being able to operate as a solar utility would “allow for [large] solar development of Georgia’s solar resources to be done by another entity,” said Robert Green, president of Georgia Solar Utilities, which initially wanted to build a solar farm in Putnam County and sell the plant to Georgia Power.
The utility declined the offer, and now Georgia Solar wants to run the plant and sell electricity directly to consumers.
That would require a change in state law, which grants utilities exclusive rights to provide electricity in certain geographic areas.
The PSC is expected to vote Tuesday on Georgia Solar Utility’s request. Georgia Power opposes the company’s plan, saying it would violate state law and raise customer bills.
Kevin Greene, an attorney for Georgia Power, defended the giant utility’s resistance of aggressively adding solar to its mix until now. The cost to make and install solar technology was not cost competitive with traditional sources of electricity until now, he said.
“We won’t do things that aren’t cost effective, but when they become cost effective, we will do them,” he said.
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