Homeowners and business owners alike are pushing a proposal to loosen restrictions on how they install and use solar panels and other alternative energy.
A bipartisan bill filed in the state Senate would do just that, beginning what proponents view as a David vs. Goliath battle against energy giants such as Georgia Power, which warn of further rate increases should the bill pass. The Georgia Chamber of Commerce also has come out against the bill, pitting its own business-forward agenda against some of the Senate's staunchest Republicans.
The most controversial aspect of Senate Bill 401 would allow outside companies to install, own and maintain alternative energy systems, in return for customers agreeing to a long-term contract to pay for the electricity generated by that system.
The bill would expand Georgia law relating to alternative energy to include biomass, municipal solid waste, landfill gas and hydropower. It also would remove limits on just how much alternative energy customers could use.
"I just believe in the free market and the rights of property owners" to do what the bill would allow, said Senate President Pro Tem Tommie Williams, R-Lyons, who has signed SB 401 as a co-sponsor. "It's a consumer issue. They can't do what I feel they should be able to do right now with solar power."
Georgia set ground rules in 2001 for alternative energy, including solar energy, fuel cells and wind turbines. The law did not address how consumers could pay for it, although it capped how much energy could be generated by whatever system they used.
Williams said the caps reflected the technology at the time.
The costs of alternative energy systems such as solar panels have dropped substantially over the past few years, according to industry experts. Depending on the size of the system they want, it still requires a considerable financial commitment. The dilemma has spawned a new financial twist on how to pay for the systems: so-called third-party power purchase agreements.
"You make it possible for people who need it most -- including governments and local schools -- to do a transaction and save money," said Lee Peterson, an Atlanta-based tax attorney for the Reznick Group, a national firm that specializes in renewable energy finance.
Georgia Power spokeswoman Lynn Wallace, however, said SB 401 would allow power arrangements that had no oversight. Solar power is intermittent, and when it is not generating electricity, Georgia Power is obligated by law to fill the gap.
"That drives up cost. It would lead to higher rates and compromise reliability," Wallace said.
"If they want to install solar panels, there's nothing in Georgia law that would prevent customers from doing that to offset [regular] usage" as long as they did not use an outside business to do that, Wallace said.
For the same reasons, the Georgia Chamber of Commerce does not support the bill.
"While expanding Georgia's solar network is a laudable goal, we believe it should be done using an incentive model rather than government mandates that give taxpayer subsidies to unregulated companies with no oversight or accountability," said Chris Clark, the chamber's president. "Not only would this create an unfair playing field with existing companies, in the long term it would likely result in higher rates for customers throughout the state."
One attraction for outside companies interested in third-party arrangements is the opportunity to claim tax credits for normal business depreciation on any alternative energy system in use.
With more than two dozen lobbyists patrolling the state Capitol on behalf of Georgia Power and the chamber, SB 401 has an uphill climb. That disappointed its sponsor, Sen. Buddy Carter, R-Pooler, who questioned Georgia's commitment to renewable energy given the law's current restrictions.
Bo Nilsson, board chairman for Atlanta-based Thomas Concrete, said his company two years ago explored the addition of solar panels to its plants but stopped because of uncertainty about financing. Partnering with an outside company could ultimately help his company save money, Nilsson said. "I think it's a very good idea. It works financially for a business like us."
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