Georgia’s private sector considers the transition to a net billing system a major obstacle to the development of small-scale solar power plants, with businesses reporting significantly lower interest compared with the previous net metering model.
According to Davit Shvangiradze, founder of Green Energy, his company has not implemented a single net billing project since the regulation took effect. Although potential customers continue to inquire about the system, many lose interest after reviewing the financial calculations.
“I would be lying if I told you there was a boom like we saw with net metering. There isn’t. Since the regulation came into force, we haven’t implemented a single net billing project. There is demand: people call us, ask questions and discuss projects. But when we show them the actual figures, they are not satisfied,” Shvangiradze said in an interview with TV-program Business Course.
He explained that the economics often fail to work when a customer’s electricity consumption is lower than the solar plant’s generation capacity. In such cases, the price paid for surplus electricity supplied to the grid is insufficient to make the business model attractive.
Maia Melikidze, executive director of the Renewable Energy Development Association of Georgia (GREDA), also acknowledged the challenges the system creates for the private sector.
“Net metering involves supplying electricity to the grid and subsequently taking it back, whereas net billing monetizes the electricity supplied. As a result, small solar power plants with capacities below two megawatts may face challenges. Net billing becomes profitable for installations above two megawatts, and larger projects are more likely to benefit from it,” Melikidze explained.
The transition to net billing began in certain cases on October 1, 2025, and will apply fully to all new grid connections from January 1, 2027.
Under the current tariff structure, surplus electricity supplied to the grid in Tbilisi is purchased at 10.034 tetri per kilowatt-hour, while EP Georgia Supply pays 6.556 tetri per kilowatt-hour for electricity supplied to its regional network.
