Georgia offers a generous tax-credit program for homeowners that install photovoltaic and solar heating systems in their homes. These tax credits cover 35 percent of the costs of both installation and equipment, for amounts up to $2,500 for solar water heating systems, and $10,500 for photovoltaic systems. These tax credits can also cover renewable energy equipment that is leased; the value of leased equipment is calculated at eight times the annual rental fees. All solar heating equipment must be certified by Solar Rating Certification Corporation or the Florida Solar Energy Center.

Because Georgia has a limit on the total amount of tax credits that may be claimed, homeowners must submit a preliminary application to the Georgia Tax Commissioner before applying for these credits. The limit for credits through this program is $2.5 million, and these credits are offered on a first-come, first-served basis, so be sure to get your application in early if you would like to take advantage of this program. These tax credits may be claimed until Dec. 31, 2012.