Energy Incentive Programs, Alabama

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Updated June 2015

Alabama utilities collectively budgeted $40 million for energy efficiency and load management programs in 2014.

What public-purpose-funded energy efficiency programs are available in my state?

Alabama has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

Alabama Energy provides an on-line energy information system and various informational resources, but does not currently offer financial incentives for energy efficiency.

Tennessee Valley Authority (TVA) is the largest publicly-owned utility in the U.S. Under its Energy Right Solutions program, TVA offers a variety of resources to commercial and industrial customers that are served by participating distributors of TVA power:

  • Standard Rebates and Custom Incentives provide two different options for offsetting the costs of energy efficiency projects. Standard cash rebates are available for replacing specific types of equipment (lighting, motors, HVAC, and food service equipment) with more efficient versions. Projects that are more comprehensive or involve other types of efficiency upgrades may qualify for custom incentives.

  • Other resources include technical advice for qualifying customers and the Business Energy Advisor, which provides calculators and tips on common ways to reduce energy by facility type.

What load management/demand response options are available to me?

Alabama Power, a subsidiary of the Southern Company, offers a set of real time pricing programs. Under this service, customers are alternatively credited or charged for electricity usage below or above a pre-determined customer baseline load (CBL). Participants may choose to pay for these differences from their CBL based on either day-ahead or hour-ahead market pricing. Furthermore, customers may also select from a variety of price protection products, including caps, collars, contracts for differences, index swaps, and index caps. These variants on the basic real time pricing service are risk management tools that customers can use as a hedge during possible periods of higher real-time electricity prices.

The TVA-EnerNOC Demand Response program provides payments to participants in exchange for agreeing to reduce electricity consumption during times of exceptionally high demand with a 30-minute notice. Demand response events may occur weekdays April-October between 12 and 8 p.m. and November-March between 5 a.m. and 1 p.m. EnerNOC collaborates with customers to create an optimal demand reduction plan. Demand response efforts typically involve curtailing energy usage of such equipment as lighting, chillers, pumps and HVAC equipment. Interested customers may contact their local electricity distributor or fill out the program's inquiry form.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs from TVA may be of interest to federal customers:

  • TVA's Renewable Standard Offer program provides power purchase plans of up to 20 years to developers of renewable projects (biomass combustion, biomass gasification, methane recovery, wind and solar) greater than 50 kW and up to 20 MW in size. Rates paid are based on seasonal time-of-day averages. To be eligible, projects must have gone online after October 1st, 2010. The energy seller must provide TVA with project financing and interconnection agreements as well as metering installation plans, and must sign over title to RECs and other environmental attributes generated by the system. The Solar Solutions Initiative pilot program offers additional incentives to participants in the standard program that use local NABCEP-certified installers.

  • Through the Green Power Providers program, TVA will provide an up-front incentive of $1,000 and then purchase the output of a solar photovoltaic, wind, biomass, or small hydropower installation of up to 50 kW for ten years. The maximum installation size is 50 kW. Larger systems may qualify for the Renewable Standard Offer. Purchases must be brokered by a participating power distributor (generally, utilities that purchase TVA power).

Are there energy efficiency programs sponsored by state government?

The Energy Division of the Alabama Department of Economic and Community Affairs offers energy conservation programs, but none is currently available to federal facilities.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (such as Alabama Gas and Alabama Power) may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available in GSA's Energy Division Library. Federal facilities should contact their account executive to determine the level of each utility's participation.