Georgia Power’s Rooftop Solar PV Program Is A Bust So Far… Only 5 Customers In 1 Year
Following the launch last July by Georgia Power of a rooftop solar photovoltaic system consultation service and a separate installation business, the company has managed to sign up just 5 rooftop solar system installations to date. Yes, just 5.
That is despite the fact that the company has fielded around 10,000 enquiries, according to reports. In addition, there have actually been around 800 detailed customer analyses created by the firm to date.
So, what’s the issue? Why so many enquiries but so few rooftop solar photovoltaic (PV) system installations?
Georgia Power’s system itself doesn’t seem to be the problem, as the firm’s approach is rather straightforward — interested parties can simply complete a simple online survey, and then sign up for a consultation with the utility’s solar energy specialists if there seems to be an opportunity worth exploring. If everything seems good, then customers can go ahead and install a system with Georgia Power Energy Services, or choose from a list of certified solar system installers.
That all sounds good, doesn’t it? And yet the program has, to date, not been a success.
“Certainly there’s an interest and desire to have renewable energy in the Southeast, but at this point, it really is being completely dominated by utility-scale,” commented Kim Greene, chief operating officer and executive vice president at Southern Company, Georgia Power’s parent company, speaking at the Edison Electric Institute annual convention this week in Chicago.
Greentech Media‘s coverage provides some possible reasons: “There is also a limited number of solar products offered in Georgia. On the same day that Georgia Power launched its unregulated solar installation arm, the state began to allow third-party financing. Despite that change, the utility only offers a solar purchase option. In addition, the website says little about other financing options that allow for immediate savings, which is a key benefit for many customers.”
Another factor, of course, is low local electricity prices. Going by figures released by the EIA, the “average residential electricity rate in Georgia is 10.66 cents per kilowatt-hour. For comparison, the average rate in California is 17.71 cents per kilowatt-hour. Even when selecting the most favorable circumstances for adopting rooftop solar on the Georgia Power survey, the shortest payback period available is 13 years. For many customers, that’s just too long.”
A good point. If the economics don’t make sense, then only a very small minority of potential customers are going to be interested, especially if they don’t know about $0-down financing options.
With regard to the company’s seriousness, the senior vice president of GTM Research, Shayle Kann, commented: “I don’t think Georgia Power is trying not to sell solar. I think they’re trying, and it’s some combination of they’re not that great at it yet and have to learn the lessons solar installers have learned over the years, and that the economics are tight because electricity is cheap.”
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