Alabama Renewable Energy and Energy Conservation Incentives

Homeowners in Alabama who are interested in installing a renewable energy system such as solar, wind, or geothermal, or who want to take conservation measures to increase the energy efficiency of their homes, can look to Alabama electric co-ops for financial incentives to help with the cost.

Renewable energy production incentives

The Tennessee Valley Authority (TVA), through its Green Power Switch Generation Partners® Program, offers production incentives to residential and small commercial customers who install a solar photovoltaic or wind turbine system. TVA will purchase 100% of the output of the system at $0.15 per kWh through a participating power distributor in Alabama. For larger commercial customers TVA will purchase the electricity at $0.20 per kWh. The production incentive for larger commercial customers is limited to solar photovoltaic systems.

This production incentive is paid in the form of a credit by the local power distributor on your monthly power bill for your home or business. Payments are guaranteed for 10 years. When your system is first connected to the grid you can receive a rebate payment of $500 to help offset the initial installation costs. This rebate is available until total capacity reaches 150 kW.

To qualify for the production incentive, the solar photovoltaic or wind turbine system must have a minimum output of 500 watts AC, and a maximum capacity of 50 kW. But power distributors can elect to allow larger systems by mutual agreement with the TVA on a case-by-case basis. Your system must comply with the National Electric Code, must be permitted and certified by a licensed electrician, and must pass all applicable local code inspections.

On TVA's website at www.tva.com/greenpowerswitch there is a list of participating power distributors. If your utility company is not on the list and you are interested in participating in the green power switch program, you should contact the utility company's representative.

Residential energy efficiency rebate programs