Electricity Rates in Alabama

Companies offering net metering in Alabama include Riviera Utilities, Central Alabama Electric Cooperative, and Southern Pine Electric Cooperative. The state has nonexistent net metering and feed in tariffs that make solar and other alternative types of electricity generation more feasible.

The state has 42 electricity providers who report energy loss during transmission activities. The average energy loss for these suppliers is 4.38%. The countrywide average is 2.87%, resulting in Alabama receiving a rank of 41st best in the nation for energy loss efficiency.

Encouraging private citizens to install solar panels can be a challenge due to prohibitive installation costs. Governments can help the cause by enacting rebates and tax breaks for solar panel installs. Alabama, unfortunately, has no tax credits offered to residents who purchase solar. There are currently no state sponsored rebates available to consumers who are considering purchasing solar. The state of Alabama offers no property tax exemptions to homeowners who install private solar, making it less attractive for residents to do so. Fortunately, residents in the state have a 100% sales tax exemption for the install of solar. This is as good as it gets.

Statewide legislation has a big role in affecting whether customers who are seeking renewable energy sources can easily find alternatives. Many states require green fuel sources to make up a percentage of the fuel used for electricity generation by electricity companies in the state. These guidelines are called Renewable Portfolio Standards (RPS). The state of Alabama, unfortunately, has no standards in place. Additionally, the state does not have any sort of low income solar programs that encourage the installation of solar panels at low income households.