Georgia has some of the highest electricity costs in the nation. Moreover, energy costs will likely increase by as much as 3% per year for the foreseeable future.
Due to rising energy costs, people look for new ways to power their homes, being as cost-effective as possible.
For this reason, solar panels are increasingly attractive. They can be a very cost-effective investment to make, especially over the long run.
However, the initial installation of solar panels will not be cheap, but it is a long-term investment. If you live in Georgia, you probably want to know how much installing solar panels will cost.
The initial cost of the solar panel installation is not the only important factor. In fact, the more important aspect is how long it will take for them to pay for themselves. So, if you invest in solar panels, how long will it take for you to break even based on yearly electricity cost savings?
Therefore, we’re not just going to look at the initial cost of the solar panels. We’re also going to determine how much electricity you currently use per month and how much it costs you. We also want to know how much electricity an average solar panel can produce per month.
Based on all of these factors, we can then determine how long it will take for you to break even on your investment.
The Average Cost of Solar Panels in Georgia
Let’s first talk about the average cost of solar panels in Georgia. The good news is that solar panels are very affordable in Georgia. On average, they cost just $2.33 per watt of solar panel installed, which is well below the national average of $3.
Bulk pricing scale generally applies to solar panel investments. This means that the larger the system, the cheaper it will be for every watt.
A 9-kilowatt system will cost more than a 5-kilowatt system. However, in terms of the cost of individual watts, the more extensive system is, the more cost-effective. Keeping this in mind, how much can you expect to spend on solar panels in Georgia?
- 4kW – $2.55 per watt – $10,200
- 5kW – $2.44 per watt – $12,200
- 6kW – $2.33 per watt – $13,980
- 7kW – $2.31 per watt – $16,170
- 8kW – $2.32 per watt – $18,560
- 9kW – $2.26 per watt – $20,340
- 10kW – $2.23 per watt – $22,300
Solar Rebates and Incentives in Georgia
Georgia does not offer any solar rebates or incentives. However, there is a federal incentive known as the ITC or Investment Tax Credit. This is also known as the Federal Solar Rebate Program. At this time, this program provides a 26% rebate on all solar panel investments. This means that you only pay 74% of the upfront cost.
This rebate, as it stands, will last until the end of 2022. Then, this incentive will drop to 22%. However, from 2024 onwards, this incentive will no longer be in place, and at this time, plans to renew this rebate are not in place.
Therefore, to save the most money, you must install your solar system before the end of 2022. So, what do solar panels systems cost in Georgia after this federal rebate has been applied?
- 4kW – $7,548
- 5kW – $9,028
- 6kW – $10,345.20
- 7kW – $11,965.80
- 8kW – $13,734.40
- 9kW – $15,051.60
- 10kW – $16,502
Determining the Payback Period of Solar Panels in Georgia
Now that we know how much solar panels in Georgia cost, there are other figures we need to determine, such as how much energy you use and how much it costs. We also need to know how many hours of peak sunlight solar panels in Georgia get.
Once we have these numbers, we can then plug them into our final equation. Next, we want to figure out how long it will take your solar panels to pay for themselves.
Georgia Residential Energy Usage and Expenditures
Residents of Georgia use an above-average amount of electricity. Georgians use roughly 1,098 kilowatt-hours of electricity per month, ranking 11th in the nation. This is almost 22% more than the national average of 903-kilowatt hours per month.
However, Georgia has relatively low electricity rates, an average of 11.17 cents per kWh used. This is 29th in the US. The average residential electricity rate in the US is 6% higher, at 11.88 cents per kWh used.
That said, Georgian electricity costs are still fairly high due to the large amounts of electricity used per month.
On average, Georgians pay $123 per month for their electricity, 11th in the nation. It’s almost 15% more than the national average electricity bill of $107 monthly. This equates to $1,476 spent per year.
Peak Sunlight Hours and Solar Panel Output
We also need to know how much peak sunlight solar panels in Georgia get. The standard peak sunlight used in output calculations is 4 hours.
With 4 hours of peak sunlight per day, a 5-kilowatt system can produce around 20-kilowatt hours of electricity. This equates to roughly 600-kilowatt hours of electricity generated per month.
The standard installation size is 5 kW, so this is what we will work with. Georgia gets 4.25 hours of peak sunlight per day, which must be factored into the equation. So, in Georgia, a 5-kilowatt solar system will produce roughly 21.25 kilowatt-hours per day, or approximately 637.5 kilowatt-hours every month.
The Payback Period
Now we have the numbers needed to determine how long solar panels will take to pay for themselves:
- A 5kW solar system in Georgia will cost roughly $9,028.
- That 5kW system, with 4.25 hours of peak sunlight, will produce 637.5 kilowatt-hours of electricity per month.
- Residents of Georgia use an average of 1098 kilowatt-hours of electricity per month.
- Georgians pay an average of $1,476 per year for their electricity needs.
The 637.5 kilowatt-hours produced is 58.06% of the 1,098 kilowatt-hours used per month. This, therefore, means that a 5kW solar system will allow you to save 58.06% of your energy costs.
A 5kW solar system will lead to yearly savings of $856.97. Based on this, it will take 10.53 years for you to break even on a 5kW solar system investment. However, a 5kW solar system doesn’t come close to meeting your monthly usage needs.
To Fully Meet Your Energy Needs
To fully meet your energy needs in Georgia, you need a 9kW solar system which will allow you to save the full $1,476 per year. Remember that the cost of a 5kW system in Georgia is $15,051.60. Based on this, the investment would take 10.2 years to pay for itself.
Conclusion
With a payback time of just over 10 years, a solar system is an excellent investment to make in Georgia. It saves money in the long run, it adds to the resale value of your home, and it’s good for the environment.