- Last Updated: May 23, 2012
Alabama, affectionately called the Yellowhammer state after the state bird, has strikingly few incentives for renewable energy development. There are 21 states in the country with renewable energy portfolio standards, or requirements that they will get a certain percentage of their power from renewable sources by a certain time. Another five states have renewable energy goals. Alabama is not part of either group.
The state legislature has not made renewable energy development a priority, and discussions on the topic have been truncated at best. The state does have some hydroelectric power sources and two biomass electric plants fueled by lumber industry waste.
Alabama is rich in other power resources and enjoys the lowest property tax of any state in the country, making it a hard tax to cut for clean energy incentives. The state income tax, while one of the highest for the poorest families, is—on average—one of the lowest in the United States, which also makes it a poor candidate for incentives to those homeowners who would consider installing solar.
While the state itself has made no strides toward incentivising private and corporate installations of clean energy sources, a federal program operating regionally has stepped up to the plate.
Those Alabamans who live in the part of the state within the jurisdiction of the Tennessee Valley Association do have access to funding and rebates.