Alabama Solar Rebates and Incentives

Alabama Rebates and Incentives Summary

Last Updated on Oct. 27, 2014

Alabama, affectionately called the Yellowhammer state after the state bird, has strikingly few incentives for renewable energy development. And the lack of enthusiasm for solar at the government level translates directly into low numbers for solar adoption.

At the end of 2013, fewer than 150 homes in Alabama were powered by the sun, according to figures from the Solar Jobs Census. In terms of solar jobs, the state ranks 42 in the country.

That slow growth can be attributed to a relatively cloudy atmosphere for the solar industry. There is no strong net metering policy in the state, which means home and business owners who produce more power than they need and feed energy back onto the grid don’t get any credit on their utility bills for the excess.

Alabama doesn’t have a renewable energy portfolio standard and its policy on third-party-owned systems is murky at best. That means most people have to pony up cash out of pocket to install solar panels.

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 hard to incentivize solar with property tax discounts. 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 incentivizing 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.


Alabama Solar Power Financial Incentives

Financial Incentives

Last Updated on Oct. 27, 2014

Financial Incentives

Local Loan Program

Performance-Based Incentive

Personal Deduction

State Loan Program

Utility Loan Program

Utility Rebate Program

Rules, Regulations & Policies

Building Energy Code

Energy Standards for Public Buildings


Related Programs & Initiatives

Alternative Fuels Data Center
The U.S. Department of Energy's Alternative Fuels Data Center (AFDC) provides information, data and tools to help fleets and other transportation decision-makers find ways to reduce petroleum consumption through the use of alternative and renewable fuels, advanced vehicles, and other fuel-saving measures.

Green Power Network
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.

Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.

Wind Powering America
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.

Tennessee Valley Green Power Partners

Program Type Performance-based Incentive
Technologies Photovoltaics, Landfill Gas, Wind Energy, Biomass, Low-impact Hydroelectric
Amount $1,000 upon installation plus retail rate and $.04 per kilowatt hour in years 1 through 10 and guaranteed retail rate of power in years 11 through 20.
Required Documentation Completed application submitted to local utility within the TVA jurisdiction                                 
Official Web Site

The Tennessee Valley Authority, a government-owned independent corporation that controls utilities in Tennessee and major parts of Alabama, Mississippi, and Kentucky, aims to increase green power production.

The TVA has created an incentive program for independent residents and companies that want to generate green power.

Residents living within the jurisdiction of the TVA qualify for a $1,000 payment when they hook new renewable energy sources up to the grid.

They will also receive $.04 above the market rate for power for every kilowatt hour (kWh) of solar power they contribute to the electricity grid in the first 10 years after installation and are guaranteed to receive credit at the retail rate of electricity for another 10 years after that.

Systems sized between 0.5 kilowatts and 50 kilowatts are eligible.

Maintenance and upgrades to the independent power generation systems are the sole responsibility of the system owners.


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