Written by Sarah Lovanova
Across much of the United States, net metering laws ensure that solar system owners receive fair compensation for the surplus power they feed to the utility grid. Net metering programs enable utility customers to sell renewable energy at a retail rate and receive credits on their utility bills. Then, these credits offset electricity consumption during other times of the day when the solar system isn’t producing enough.
Therefore, net metering programs are critical for encouraging solar energy growth throughout the United States. Unfortunately, the future of net metering in Georgia right now is unknown.
Georgia’s Monthly Net Metering Program
In 2019, the Georgia Public Service Commission (PSC) approved a motion requiring Georgia Power to purchase excess solar power at the retail rate from solar systems over the course of the month. This is called “monthly net energy metering.”
Residential and commercial solar systems that produce surplus power can supply it to the power grid. This energy is totaled up on a monthly basis and offsets monthly electricity use at roughly 12 cents per kilowatt-hour (kWh). Georgia Power compensates solar customers for excess power supplied to the grid beyond the monthly usage at the Solar Avoided Energy Cost Rate, which is a much lower rate.
This initiative is a huge improvement over the roughly 3 cents per kWh credit that Georgia Power used to pay for solar electricity. This lower amount is the wholesale rate of electricity, not the retail cost that customers pay.
However, only the first 5,000 solar customers were eligible for this renewable energy tariff and received about 12 centers per kWh of electricity. This number is quite low, considering Georgia Power has 2.5 million customers.
What Happens When the Monthly Net Metering Program Reaches its Cap?
Now, this program has reached its limit and is not accepting new applications. Therefore, new solar system owners are only eligible for net billing. Solar system owners have a bidirectional meter that tracks energy going in both directions, including surplus power that is supplied to the utility grid.
However, solar system owners receive the Solar Avoided Energy Cost Rate, which is much lower than the retail rate they pay to Georgia Power for electricity. Therefore, these solar systems will have a lower return on investment and a longer payback period than solar systems that qualify for monthly net metering with Georgia Power.
Expanding the Georgia Power Net Metering Cap
Net metering programs dramatically increase the savings from owning a solar energy system. Therefore, it is critical to increase the capacity of this program to help promote renewable energy use in Atlanta and beyond. The Georgia Solar Energy Association (GA Solar) warns that if the cap isn’t expanded, Georgia could lose hundreds of solar energy jobs.
GA Solar has launched the Scrap the Cap campaign, calling for eliminating the 5,000-customer limit on monthly net metering. Thus, it is urging people to reach out to the PSC to show support for this popular program.
According to Georgia law, investor-owned utility companies must file an integrated resource plan (IRP) every three years. Georgia Power’s 2022 IRP explains the company’s proposed mix of energy fuels, including coal, fossil gas, and renewable power. The IRP will shape Georgia’s energy future, impacting greenhouse gas emissions, energy independence, and fossil fuel consumption for years.
The PSC regulates Georgia Power and has the authority to approve its IRP, and the process involves public engagement. However, many Georgians are calling for greater investment in clean power and energy efficiency and relief for low-income residents using energy equity.
There are ways that citizens and non-profits have gotten involved in the IRP process, such as making comments in hearings and providing feedback to commissioners. This feedback can help shape Georgia’s energy future.
The IRP process creates an opportunity for Georgians to get involved and to have their voices heard. The future of solar energy growth in our state relies on policies that fairly compensate solar system owners for the valuable energy they provide to the power grid. Expanding the monthly net metering cap allows more Georgians to take advantage of the many benefits of solar energy.