Alabama residential solar energy incentives

TVA – Green power switch generation partners program

- This production-based incentive program is for customers of Tennessee Valley who purchase and install solar photovoltaics, wind, low-impact hydropower, and biomass systems.

- The entire output of a qualifying system is purchased by TVA at $0.12 per kilowatt-hour above the retail rate for solar and $0.03 per kilowatt-hour above the retail rate for all other eligible renewable systems.

- Payments are made in a form of a credit on each monthly bill through participating local power companies who purchase the generated power.

- A $1000 incentive is given to every participant to help with the initial cost of the system.
Utility-sponsored loan and solar rebate programs

- Many utility loan and rebate programs are available throughout the state of Alabama, provided by municipal cities and utility companies.

* Information and details on all the different programs are available on the internet.

* Details and requirements for each program will vary.

- Most loan and rebate programs are available for customers who install heat pumps and water heat systems.
Residential Renewable Energy Tax Credit

- This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

- Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

- The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

* This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.
Residential Energy Conservation Subsidy Exclusion

- This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

- The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

- Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.
Energy-Efficient Mortgages

- This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.