Alabama Solar Rebates And Incentives

Rebates list

Alabama Rebates and Incentives Summary

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 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.

Search Federal Programs, Rebates or Incentives

Alabama Gas Corporation - Residential Natural Gas Rebate Program

Alabama Gas Corporation (Alagasco) offers a rebate to its residential customers who replace older gas water heaters with new, efficient gas water heaters. Rebates are offered for customers who switch from electric to natural gas furnaces, AC and water heaters. All equipment requirements must be met in order to receive rebates. Separate incentives are also available for converting the fuel source of this equipment. Please visit program web site to access rebate forms and application instructions. Only current Alagasco customers with a gas account are eligible for rebate. 

Alabama Power - Electric Water Heater Rebates

Alabama Power Co. is an electric utility that serves 1.4 million customers electricity. Alabama Power Co. offers rebates to customers who make the switch from a gas to an electric water heater. To qualify, customers must own their home, townhome, or condo. This rebate will be available for a limited time only. Contact the utility or visit the program website for more information.

Alabama Power - Residential Heat Pump Loan Program

Alabama Power offers low-interest loans to residential customers to purchase and install new heat pumps. The loans require no money down and can be used to finance an air source, geothermal or dual-fuel heat pump. The loans can also be used to cover associated water heating costs and wiring installations. Contact Alabama Power or see the program web site for more information.

AlabamaSAVES Revolving Loan Program

The Alabama Department of Economic and Community Affairs (ADECA) offers an energy efficiency and renewable energy participating loan program called AlabamaSAVES. The Program funds subordinated participating interests in qualified third-party loans used to finance energy projects at existing commercial, industrial and non-profit businesses in Alabama. The Participating Interest can be for 100% of the cost of the eligible project or 25% of the Participating Loan up to the cost of the eligible project, whichever is less.A variety of technologies are eligible; see the program technical guide for full details.

In order to apply, interested parties must first contact an AlabamaSAVES

AlabamaWISE Home Energy Program

The Alabama WISE Home Energy Program provides technical and financial resources for homeowners to improve energy efficiency of their homes. Homeowners can work with participating certified energy contractors to complete a comprehensive home energy assessment. During the energy assessment the contractor will identify various energy saving measures which the homeowner may choose to implement. 

The program also provides financing for energy efficiency measures identified in the assessment. To be eligible for the loan, the homeowner must have a minimum credit score of 660 and must be a member or affiliate member of the RedStone Federal Credit Union. A list of eligible

Building Energy Code

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP web sites.

Legislation passed in March 2010 authorized the Alabama Energy and Residential Code (AERC) Board to adopt mandatory residential and commercial energy codes for all jurisdictions. In 2015, the AERC board updated its energy code to the 2015 Alabama Residential Energy Code and 2015 Alabama Commercial Energy Code. The residential code is based on the 2015 International Energy

Central Alabama Electric Cooperative - Residential Energy Efficiency Rebate Program

Central Alabama Electric Cooperative, a Touchstone Electric Cooperative, offers the Touchstone Energy Home Program. Touchstone Energy Homes, either standard or manufactured, with an air-to-air, dual fuel or mini-split heat pump qualify for rebates. Additionally, water heaters are eligible for rebates if certain efficiency requirements are met. Rebates range from $235 to $400, depending on tonnage and system type. Contact CAEC for further information on this program.

Dixie Electric Cooperative - Residential Energy Efficiency Loan Program

Dixie Electric Cooperative, a Touchstone Electric Cooperative, offers the Energy Resources Conservation (ERC) loan to residential customers pursue energy efficiency measures. The program allows a maximum loan of $5,000 at a 5% interest rate. Funds can be used for improvements, upgrades, gas to electric conversions, or installation of a heat pump system. The payments for the loan are added to the customers' monthly utility bill and can be spread over a maximum of 60 months. Customers may be subject to a credit review and approval. For more information view the web site listed above.

Local Government Energy Loan Program

Through a public-private partnership with PowerSouth, Alabama's Local Government Energy Loan Program offers zero-interest loans to local governments, K-12 schools, and public colleges and universities for renewable energy systems and energy efficiency improvements that will eventually have a payback through utility savings. Under the program, municipal and county governments, and colleges and universities may borrow up to $350,000 for eligible projects, and K-12 schools may receive up to $350,000 per campus or $500,000 per school system for eligible projects. Eligible renewable energy resources generally include biomass, hydropower, geothermal energy, wind energy, and solar energy.

The application is available on the

Local Option - Property Assessed Clean Energy Financing

NOTE: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing

Local Option- Property Tax Exemption for Renewable Energy Faclities

The State of Alabama provides abatement of property tax for qualifying renewable energy facility in the state.  Only the noneducational portion of the property tax can be abated. 

Eligibility:

The Renewable Energy Facility is defined as any plant, property or property that either produces electricity from biofuels, or from renewable energy resources, including- wind, biomass, black liquor, tidal or ocean current, geothermal, solar energy, small irrigation, municipal solid waste, and hydrogen when derived or produced from some other renewable energy resource. Hydropower is exempted from the definition of eligible resource. 

Program Description:

The abatement of the property taxes is based

Local Option- Sales Tax Abatement for Renewable Energy Facilities

State of Alabama provides the option for local governments to provide exemptions or abatement for sales and use tax for qualifying renewable energy facilities in the State.  The state has a general sales tax of 4%, however, the renewable energy facilities qualify for 1.5% rate provision that is set for manufacturing and farm machinery. In addition to State sales tax, the local governments may also impose an additional sales or use tax. 

The exemption or abatement for both state and local sales/use tax are provided by the local granting authority. The local granting authority could be a city, county, or

South Alabama Electric Cooperative - Residential Energy Efficiency Loan Program

South Alabama Electric Cooperative (SAEC) is a part owner of Alabama Electric Cooperative which has a generation facility in Andalusia, Alabama. The Energy Resources Conservation Loan (ERC) helps members of the cooperative cover the cost of labor and materials for energy conservation measures on existing structures. Loans will only be made to members who have good credit ratings and also own the structures to be weatherized. ERC loans may be provided to finance the cost of labor and materials for items such as insulation, storm or thermal windows, storm or thermal doors and high efficiency heat pumps. Contact SAEC for

TVA - Green Power Providers

Tennessee Valley Authority (TVA) and participating power distributors of TVA power offer a performance-based incentive program to homeowners and businesses for the installation of renewable generation systems from the following qualifying resources: PV, wind, hydropower, and biomass. The long term Green Power Providers program replaces the Generation Partners* pilot program. The energy generated from these renewable generation systems will count towards TVA's green power pricing program, Green Power Switch.

The Green Power Providers program contract term is 20 years. Generation credit will be paid at the following flat rates for the entirety of the 20-year contract:

•Residential/GSA-1 customers with system

TVA - Mid-Sized Renewable Standard Offer Program

The Tennessee Valley Authority (TVA) now compliments the small generation Green Power Providers Program by providing incentives for mid-sized renewable energy generators between 50kW and 20MW to enter into long term price contracts. The goal for total production from all participants is 100MW, with no more than 50MW from any one renewable technology. The Renewable Standard Offer program also includes Solar Solution Initiative program that offers additional financial incentives for Solar Photovoltaic (PV) projects. 

TVA bases the standard offer for customer generators off of a seasonal time-of-day averages chart, which sets base prices for the term of the

TVA - Solar Solutions Initiative

Solar Solutions Initiative (SSI) is a pilot program that offers additional financial incentives for Solar PV systems participating in the Renewable Standard Offer program. Applications for new projects for the year 2015 will open on January 2, 2015. Participants applying for the Solar Solutions Incentive program are required to apply through the Renewable Standard Offer program.

The program offers performance based incentive of $0.04/kWh for the first 10 years after the project is operational. This incentive is additional to the seasonal and time-of-day price for electricity offered through the Renewable Standard Offer program.

The total capacity for the

TVA Partner Utilities - Energy Right Heat Pump Program

The Tennessee Valley Authority (TVA) energy right Heat Pump Plan provides financing to promote the installation of high efficiency heat pumps in homes and small businesses. Installation, performance, and weatherization standards ensure the appropriate sizing of equipment and operation of the system. TVA maintains a Quality Contractor Network (QCN) from which customers can choose an installer. Through a third-party lender, TVA provides financing for residential heat pumps with repayment on the customer’s electric bill and a term of up to 10 years. The programs are independently administered by local power companies served by TVA.

TVA Partner Utilities - eScore Program

The Tennessee Valley Authority (TVA) in partnership with local electric utilities offers eScore program, which provides homeowners financial incentives to increase the energy efficiency of existing homes. This program replaces the previous In-Home Energy Evaluation Pilot program offered by TVA. 

To participate in the program, homeowner must create an account with the program. After the account is verified, the applicant has two options to participate in the program:

  1. Request for eScore evaluation: If the homeowner is unsure about what exact steps should be taken to increase energy efficiency, then they have a professional energy advisor evaluate their home for a

Wood-Burning Heating System Deduction

This statute allows individual taxpayers a deduction for the purchase and installation of a wood-burning heating system. The deduction is equal to the total cost of purchase and installation for the conversion from gas or electricity to wood when the system is used as the primary energy source for heating a home. The deduction must be taken for the taxable year during which the conversion was completed. Note that this incentive is for the conversion of an existing system and not for the first-time installation of a wood-burning system.