Energy-Efficiency Funds and Demand Response Programs, Alabama

Updated September 2008

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.

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 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.

Alabama Power also offers the Standby Generator Program (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. Download Adobe Reader.

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 woodwaste, landfill gas, and switchgrass. 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, TVA will purchase the output of a solar photovoltaic installation of up to 50 kW (though larger systems may be approved on a case-by-case basis) at $0.20/kWh. Purchases must be brokered by a participating power distributor (generally, utilities in the TVA territory). Current (mid-2008) participants are Cullman Power Board and Sheffield Utilities, but interested customers of TVA distribution utilities should contact their utility account representative to pursue this opportunity.

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 also have energy efficiency opportunities available with utilities (such as Alabama Gas and Alabama Power) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.