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Introduction > Alabama Legislative Proposals > Renewable / Alternative Power Working Group Recommendations

Renewable / Alternative Power Working Group Recommendations

The Renewable / Alternative Power Working Group has developed the following recommendations for consideration.  The Working Group is proposing actions that will encourage renewable and alternative power production and use in Alabama.  The group also proposes actions to promoting energy conservation and energy efficiency in Alabama. 

1.       Encourage further research, development, incentives and use of renewable/alternative power in Alabama and determine the cost, the practicality for deployment in the state, and the economic feasibility.

2.       Encourage further research into the actual energy savings and typical costs savings in Alabama of the numerous energy conservation measures available for adoption by residential, commercial, institutional and industrial customers.

3.       Encourage electric utilities to expand the promotion of their renewable power programs in an effort to raise the awareness of all utility customers of the benefits and availability of renewable power. 

4.       Encourage electric utilities to establish renewable power recognition emblems that customers, who are eligible for purchase of renewable power and purchase a significant block of renewable power, can display.

5.       Establish an ENERGY STAR state sales tax holiday and encourage local governments to offer a local sales tax ENERGY STAR exemption the same day, in an effort to provide a state tax incentive for energy-efficient purchases, similar to the consumer tax incentives provided by the federal Energy Policy Act of 2005.

6.       Encourage the establishment of an Alabama Energy Commission.  In addition to the recommended responsibilities for the Energy Commission set forth by the Biofuels Working Group, it is recommended that the Energy Commission be established to further recommend courses of action leading to the development of a dynamic state Energy Policy in regard to renewable power, alternative power and energy conservation.

7.       Encourage net metering in Alabama that is equitable to both renewable power providers and electric utility rate payers.

8.      Develop state income tax incentives for installation of qualified solar water heating or solar photovoltaic electricity generating systems for residences and businesses.  The definition for qualified solar water heating or photovoltaic systems to be equivalent to the definition in the federal Energy Policy Act of 2005.  Incentives to include:  1) a deduction from the taxpayer's adjusted gross income for state income tax purposes of the total cost of installation of qualified solar water heating or solar photovoltaic electricity generating systems for the taxable year during which the installation was completed to be available to either the builder or the building owner, and 2) a production state tax credit for electricity generated by solar photovoltaic systems for the first ten years of system operation, to be available to either the photovoltaic system owner or the building owner.

9.      Encourage reduction of local restrictions preventing the installation of solar systems on buildings.  This has been enacted in other states to encourage the use of solar energy.


Renewable Power     electricity produced from biomass (animal, plants and waste, byproducts or derivatives of either), trash combustion, landfill gas, geothermal, wind, solar, hydroelectricity and small irrigation projects.

Alternative Power     electricity produced from coal gasification or liquefaction, nuclear, and advance coal-based generation.

Energy Conservation Measure     includes installations or modifications that are primarily designed to reduce consumption of electricity, propane or natural gas, or improve the management of energy demand.