Changes to Energy Efficiency Tax Credits Affect Georgia
The One Big Beautiful Bill (OBBB) became law early this month. Within this massive bill are several important changes for energy and natural gas in Georgia. Specifically, we’re looking at shorter end-dates for energy efficiency tax credits. Although this doesn’t seem like a big move, the impacts are big. Let’s find out what GA home owners can expect from the new law ending energy efficiency tax credits.
Ending Energy Efficiency Tax Credits Hits Home
For years, we’ve been able to make efficiency upgrades to our homes a little less pricey with federal tax credits. Though expensive, putting in new windows or HVACs can cut your energy usage and lower bills. These credits for energy efficient upgrades and home solar were meant to last until 2032. The OBBB now ends these credits on December 31, 2025. This means major home upgrades will cost you more next year. Many of these projects will simply become out of reach for lower income households.
Over the years, as appliances and home heating systems age, they become less efficient. This costs you more money each month on energy and natural gas bills in Georgia. Higher energy use and other cuts from the OBBB could raise bills in coming years. But before we get to that, let’s see how the OBBB cuts deal a blow to our Georgia energy sector.
Tax Credits for Georgia’s Green Energy Projects
In recent years, federal tax credits for major power projects have driven growth in our state. According to Environment Georgia, our state’s solar power capacity grew by 3,616% from 2014 to 2024. Perks from this growth include making cheap and clean energy in-state, meeting higher electric demand, and new jobs and wealth.
However, the OBBB cuts the timeline for these credits. This puts current and future green power projects, energy, and jobs at risk. The law now requires new energy projects to be in-service by the end of 2027 to get tax credits. Projects that begin building within the next year may have up to four years to get the credits. The bill also adds strict limits to foreign presence in these projects. These limits cover things from parts new plants use to the people and companies who are financially involved. In other words, more hurdles to jump.
Georgia faces growing electric demand from AI and tech business. So, losing these tax credits could scrap green energy projects and drive up energy costs for everyone. Plus, new generators will likely rely on burning natural gas. As a result, without bumping up electric output, energy prices could become more volatile. So, you’ll be looking at very pricey winters with rising natural gas rates.
Georgia Energy Bill Projections
According to an Energy Innovation analysis, Georgians could see their energy bills rise to $270 per year by 2035. Others predict a per year bump in electric costs of $102 by next year for Georgians. Keep in mind that electric demand will pressure natural gas prices, too. Specifically, as more natural gas goes toward electric generation, you will need more dollars to run your gas furnace.
Also remember that before prices for natural gas go up, you can lock-in a cheap rate for the long term at https://www.georgiagassavings.com.