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
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.
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
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.
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.
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.
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.
Encourage net metering in Alabama that is
equitable to both renewable power
providers and electric utility rate payers.
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.
– 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.
includes installations or modifications that are primarily designed to
reduce consumption of electricity, propane or natural gas, or improve the
management of energy demand.