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An arrow graphic shows that Alabama has no renewable portfolio standard.

Carve-out: None
Tracking system: No formally adopted tracking system

Alabama does not have statewide policies such as net metering, interconnection, or community solar programs to support midscale solar. Electric customers in the Tennessee Valley Authority (TVA) service territory may be eligible for utility incentives for midscale solar.

Net Metering

Alabama does not have a net metering policy.


Alabama does not have a standardized interconnection policy.

Third Party Ownership

Third party solar power purchase agreements (PPAs) are not allowed in Alabama.

Community Solar

Alabama currently does not have statewide community solar policies or programs.

State Incentive Programs

Program Administrator Incentive
Local Government Energy Loan Program Department of Economic and Community Affairs The program offers zero-interest loans to local governments, K-12 schools, public colleges, and public universities for solar systems. Eligible public entities may borrow up to $350,000 per project.

Utility Incentive Programs

Prospective Alabama customers in the TVA service territory may be eligible for TVA solar incentives.

Program Incentive Limitations
TVA: Green Power Providers program First 10 years: 0.02/kWh above the retail rate; an additional 10 years: retail rate <50 kW
TVA: Renewable Standard Offer program 10-, 15-, or 20-year contracts at a rate that escalates 5% annually 50 kW to 20 MW
TVA: Solar Solutions Initiative Additional $0.04/kWh for the first 10 years 50 kW to 1 MW
Total capacity: 20 MW


The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Programs and Incentives