Southern's Unit Secures PSC Approval for Five Solar Facilities

Georgia Power, a subsidiary of Southern Company SO, secured approval from the Georgia Public Service Commission (“PSC”) to move forward with five large-scale solar Power Purchase Agreements (PPAs). These newly certified projects will contribute a combined capacity of 1,068 megawatts (“MW”) of solar energy. Designed to align with the 2023 Clean and Renewable Energy Subscription (“CARES”) initiative, the agreements aim to further the company’s renewable energy objectives and provide long-term benefits to its customer base.

Expanding Utility-Scale Solar Projects to Support CARES 2023 Goals

The newly approved solar projects were selected through a competitive bidding process under the CARES 2023 Request for Proposal (“RFP”). These third-party-built and maintained facilities are expected to bring significant environmental and economic benefits. Each project contributes directly to CARES, a program that allows eligible commercial and industrial customers to subscribe to a share of renewable energy production. As sustainability goals become central to corporate strategies, demand for these subscriptions continues to grow rapidly.

According to Wilson Mallard, director of Renewable Development at SO’s subsidiary, the selected PPAs are economically sound and strategically aligned with its long-term planning models. The solar resources are expected to provide energy and capacity benefits to the grid, enhance generation diversity and increase overall system reliability.

Breakdown of the Five Approved Solar Projects Across Georgia

The five newly approved solar PPAs, carefully evaluated through a competitive solicitation process led by an independent evaluator and the PSC staff, will be strategically located across Georgia to strengthen the state’s renewable energy infrastructure and diversify Georgia Power’s portfolio.

In Mitchell County, a 25-year agreement will deliver 260 MW of solar capacity, making it one of the largest standalone solar projects in the state. Coffee County will host a 200 MW project under a 30-year PPA, showcasing Georgia Power’s strong, long-term commitment to solar development. Wilkinson County’s 20-year agreement will add 183 MW of solar paired with a 91.5 MW battery energy storage system, enhancing grid reliability through advanced integration of solar plus storage.

Meanwhile, Jefferson County will benefit from a 20-year PPA for 200 MW of solar energy, supporting both clean energy goals and local economic growth. Laurens County rounds out the portfolio with a 20-year agreement for 225 MW of solar, reinforcing the statewide momentum toward sustainability. Together, these projects promise meaningful, long-term benefits for all SO’s unit customers — delivering cleaner, more secure and cost-effective energy for years to come.

Supporting a Diverse, Carbon-Free Generation Mix Through RFP Innovation

SO’s subsidiary continues to evolve the energy mix by strategically expanding its renewable energy procurement through competitive RFP processes. This strategy allows the company to remain flexible and adaptive to dynamic market trends while supporting a carbon-free energy future.

The CARES 2025 RFP, also approved under the 2022 Integrated Resource Plan (“IRP”) Final Order, was recently issued with a bold target of up to 2,000 MW of additional utility-scale solar. These new projects, expected to reach commercial operation by 2028, are designed to fulfill any remaining capacity left from the CARES 2023 RFP and further meet growing corporate demand for sustainable energy solutions.

Future-Focused: Georgia Power’s Long-Term Renewable Energy Commitments

According to its newly approved 2025 IRP, the subsidiary intends to acquire up to 4,000 MW of new renewable energy assets by 2035, starting with a primary target of 1,100 MW through forthcoming RFPs. This aligns with SO’s broader mission to enhance energy diversity, grid reliability and environmental performance.

To meet these objectives, SO’s subsidiary anticipates releasing its next set of competitive RFPs in 2026, targeting both utility-scale solar and distributed generation. By taking these steps, the company is set to grow its renewable energy capacity to nearly 11,000 MW by 2035, solidifying its role as a frontrunner in the shift toward clean energy.

Solar Plus Storage: A Critical Step Toward Grid Resilience

A notable feature of the Wilkinson County project is its solar-plus-storage configuration. The integration of 183 MW of solar energy with 91.5 MW of battery storage enhances the system’s overall reliability and operational flexibility. Storage ensures that excess solar energy can be saved during peak generation hours and dispatched when demand is high or sunlight is scarce. These capabilities are key to ensuring a resilient and balanced grid, especially as more intermittent renewable sources are integrated.

Georgia Power’s commitment to solar plus storage marks a forward-thinking approach to grid modernization, aligning with best practices in sustainable utility operations and delivering a consistent energy supply regardless of weather conditions or time of day.

Aligning Corporate Sustainability With Clean Energy Procurement

The CARES program serves as a strategic tool for corporations to demonstrate environmental stewardship. Through renewable energy subscriptions, businesses can claim a share of solar production, reduce their carbon footprint and meet internal ESG benchmarks. The surge in subscription demand is a clear indicator that commercial and industrial customers view CARES as a credible pathway to achieving clean energy targets.

By enabling businesses to participate in Georgia's renewable energy growth, Southern Company is fostering a collaborative model for sustainability. The program’s scalability also allows Georgia Power to adjust offerings based on customer interest and evolving market needs, creating a win-win for both the utility and its customers.

Conclusion: A Milestone Moment for Georgia’s Energy Future

SO’s Georgia Power continues to demonstrate strong leadership in the renewable energy space. With the PSC’s approval of 1,068 MW of new solar PPAs, the utility is taking decisive action to increase solar capacity, meet growing customer demand for renewables and pave the way for a more sustainable and reliable energy grid. As the CARES program expands and future RFPs bring even more renewable capacity online, SO’s unit is poised to deliver significant value to its customers while contributing meaningfully to Georgia’s clean energy goals.

The integration of solar plus storage, the growing corporate interest in renewable subscriptions and the aggressive long-term procurement targets all point to a transformative decade ahead for the state’s energy landscape.

SO’s Zacks Rank and Key Picks

Currently, SO carries a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like Algonquin Power & Utilities AQN, NextEra Energy NEE and Iberdrola IBDRY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Algonquin Power & Utilities is worth approximately $4.35 billion. It currently pays a dividend of 26 cents per share, or 4.59% on an annual basis. Algonquin Power & Utilities is a diversified, international utility company headquartered in Canada. It operates two main business groups: a regulated services group that provides natural gas, electric and water utility services, and a renewable energy group that generates clean power. The company's goal is to be a leader in the energy transition, focusing on sustainability and growth through both acquisitions and organic initiatives.

NextEra Energy is worth approximately $146 billion. It currently pays a dividend of $2.27 per share, or 3.2% on an annual basis. NextEra Energy is one of the largest electric power and energy infrastructure companies in North America. It is the parent company of Florida Power & Light Company, the largest electric utility in the United States.

NextEra Energy is also a leading producer of renewable energy from wind and solar and committed to investing in a clean energy future. The company is actively involved in developing and operating a diverse mix of energy sources, including natural gas and nuclear power, alongside its extensive renewable portfolio.

Iberdrolais worth approximately $123.42 billion. It currently pays a dividend of $2.99 per share, or 4.04% on an annual basis. Iberdrola is a Spanish multinational energy company that is a global leader in the renewable energy sector. With a strong focus on smart grids, wind power and energy storage, the company has positioned itself at the forefront of the clean energy transition.

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