Switching to renewable energy is one of the most significant activities that we can do to reduce emissions, protect people against the harmful effects of air pollution, and reduce our contribution to climate change. This change has the opportunity to be made at multiple levels. For example, power utilities can switch from fossil fuels such as coal and natural gas to renewable energy such as solar and wind, businesses can install solar panels on their commercial buildings, and individual residents can install solar panels at their homes. In Alabama however, residents that wish to utilize solar energy are charged an extra fee from Alabama Power, the only electric power utility company across the majority of Alabama. In 2012, the Alabama Public Service Commission approved Alabama Power’s request to charge customers $5 per kW(kilowatt), which has now been increased to $5.41 per kW. At the rate of the fee, residents would be charged around $27 per month for a typical 5kW solar array, around $325 per year. Alabamians’ use of solar energy does not cost Alabama Power anything, except for what they lose in power bills.
Alabama Power’s fee disincentivizes solar adoption because in order to utilize solar to a capacity that is realistic on an individual scale, Alabama’s residents must pay this extra fee. Alabamians do have another option, which is to rely solely on solar energy and take their building off of the energy grid. This option comes with some drawbacks though. For one, powering a building only on solar is a rather expensive endeavor, and secondly, solar panels require sunlight to generate electricity, meaning that nights or long bouts of overcast weather can reduce the amount of electricity produced. Using batteries makes off grid solar possible, but they also have a high cost. Solar is already difficult for Alabamians to move towards due to the startup cost, and the fee from Alabama Power means that utilizing solar energy is more than the initial cost of the equipment, but also the monthly additions to power bills.
In 2018 GASP, citizens who invested in solar, and other conservation groups filed suit in federal district court against the Alabama Public Service Commission (PSC) for approving Alabama Power’s punitive and discriminatory charges targeting customers with rooftop or on-site solar.
After a series of procedural changes over the past few years, our case is picking up speed and a lot will be happening over the next several months. We are entering the discovery phase, which may last to late spring or early summer. The discovery phase of a trial is the period before trial where both parties gather and exchange information and evidence relevant to their cases, using various methods like depositions, interrogatories, and document requests, to build their arguments and potentially settle or obtain a judgement on the case.Stay tuned for more updates.
