Energy Incentive Programs, Alabama
Updated November 2009
Below you will find questions and answers regarding Alabama's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
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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?
No utility energy efficiency programs are currently available to Federal customers.
What load management/demand response options are available to me?
Alabama Power (part 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 day-ahead or hour-ahead market pricing. 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.
Alabama Power also offers a Standby Generator Capacity (PDF 28 KB) rate wherein customers can receive a monthly credit of $2.31/kW for allowing Alabama Power to remotely operate their standby generator (of 250 kW or greater) during periods of peak electricity demand. Generators signed on to this program may be operated by the utility for a maximum of 240 hours per year.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may be of interest to Federal customers:
Alabama's Biomass Energy Program assists commercial customers in installing biomass energy systems, including those fired from wood waste and landfill gas. Program participants receive up to $75,000 in subsidy payments to help defray the interest expense on loans to install approved projects.
Through the Green Power Switch Generation Partners Program, the Tennessee Valley Authority (TVA) purchases the output of a photovoltaic, wind, biomass, or small hydropower installation of up to 1 MW for 10 years. The remuneration rates are $0.12/kWh above the retail rate for solar installations and $0.03/kWh above the retail rate for the other renewables. Purchases must be brokered by a participating power distributor (typically, 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 are currently available to Federal facilities.
What additional opportunities are available to me?
Federal customers whose utilities have areawide supply contracts through the General Services Administration (GSA) (e.g., Alabama Gas and Alabama Power) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.