New legislation backed by power companies and solar advocates could make it easier and more affordable for Georgia homeowners and small businesses to put solar panels on their rooftops.
At least that’s the hope with a bill unveiled Tuesday before a state House subcommittee. State Rep. Mike Dudgeon, R-Johns Creek, said he will submit the bill Wednesday. It clarifies how homeowners can get outside financing of small solar installations.
Solar advocates say a key to winning over homeowners is to make it easier to finance installation and equipment, which can cost $15,000 or more. With financing, homeowners can avoid upfront costs and pay for their use of the system over time.
For years, solar legislation has failed to win House passage.
But the latest bill eases earlier concerns by Georgia Power and other utilities about the safety of new installations and their worries that the state would let in rival retail utilities. Georgia Power has become more supportive of solar as state energy regulators have pressed for more and as costs of solar panels have fallen sharply.
The latest legislation already has the backing of the company, an association of mostly rural utilities, environmental groups and some solar businesses. Dudgeon said the bill’s chance of becoming law is “very high.”
Georgia has become a national leader in adding new solar power, although totals remain tiny. But recent growth has centered on large solar farms, not on home rooftops. Advocates say the smaller systems are more common in states where governments have cleared the way for third-party solar financing.
Dudgeon predicted changing state law will have a dramatic impact on the number of home solar installations here.
“I think it is going to skyrocket,” he said.
Solar companies have complained that uncertainty about what's allowed under Georgia law made it hard to sell homeowners, small businesses, churches and schools on solar financing. More than two dozen other states allow solar companies to cover the cost of new solar systems, own the equipment and then sell the power back to the customers.
Often, homeowners pay nothing upfront, then pay solar bills tied to the amount of solar energy they use. Often solar costs are competitive with or less than existing power rates.
Under the Georgia legislation, a solar company could provide energy to the homeowner and sell any excess to the power company in their area. But the solar company would be barred from selling the energy to a third party.
John D’Andrea, Georgia Power’s legislative affairs manager, said the company supports the bill “to advance solar in a responsible, cost-effective way while offering our customers more options.”
If the changes go through, homeowners could be pitched financing programs not only by solar companies, but by their local utility.
Last year, Tom Fanning, the chief executive of Georgia Power’s parent, Southern Co., said the utility was considering launching a program to help homeowners and businesses finance and maintain solar energy systems on their property.
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