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. 

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

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

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

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

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

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. 


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

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,

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

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