Homeowners, group seek action on Alabama Power’s solar fee

MONTGOMERY, (AP) — Homeowners and an environmental group are asking federal regulators to step in over Alabama Power’s fees on home solar panels, fees they argue purposely discourages the use of solar in the sun-rich state.

The petition filed with the Federal Energy Regulatory Commission asserts that the Alabama Public Service Commission violated federal law when it upheld the fees. It asks the commission to initiate an enforcement action against the PSC and direct the state agency to order Alabama Power to sell electricity to solar customers at nondiscriminatory rates.

“By imposing one of the highest fees on solar customers of any regulated utility nationwide, Alabama Power’s unjustified solar charges are severely curtailing renewable energy development in our state, and other states are leaving Alabama behind because of it,” Keith Johnston, director of Southern Environmental Law Center’s Alabama office.

“We are asking FERC to exercise its authority to enforce federal protections for solar customers in Alabama Power’s service territory.”

The action comes after the Alabama Public Service Commission last year upheld the fees and approved an increase.

Alabama Power charges a $5.41-per-kilowatt fee, based on the capacity of the home system, on people who use solar panels, or other means, to generate part of their own electricity. That amounts to a $27 monthly fee on a typical 5-kilowatt system. The average solar panel setup for a home costs about $10,000, according to the Environmental Law Center. The fees add another $9,000 or so over the 30-year-lifespan of a system, dramatically increasing a homeowner’s cost and reducing any financial benefit they see from solar.

Alabama Power has maintained the fee is needed to maintain the infrastructure that will provide backup power to customers when the solar panels don’t provide enough energy.

“Alabama Power is focused on providing customers with safe, reliable, cost-effective energy. This issue was fully examined by the Alabama Public Service Commission, which included a lengthy public hearing, with the plaintiffs choosing not to pursue the case further in state court,” Alabama Power spokeswoman Alyson Tucker wrote in an email.

“Customers with on-site generation who want backup service from the grid should pay the cost for that service. If not, other customers unfairly pay the costs for those individuals and businesses,” Tucker said.

Experts for environmental groups said the charge eliminates much of the savings that customers expect to realize for their investments in installing solar panels.

Teresa Thorne, who had a four-kilowatt system installed on her roof in Blount County, Alabama, told The Associated Press last year that the fees, “cuts my savings in half.”

“Alabama Power’s monthly fee makes it extremely difficult for people like me who want to install solar to lower their monthly bills and generate clean energy,” Thorne said in a statement released by the Southern Environmental Law Center.

More Stories

Teacher of the Year: Kaitlin Sparkman

More Stories

Ardmore welcomes new family medicine center

More Stories

Hit and run claims life of Athens man

More Stories

LCSO arrest Athens man for infant abuse

News

Final Curtain Call: Beloved Band Director Dan Havely passes away

News

Calhoun Community College to go virtual due to impending weather

News

Gov. Ivey announces that ArcelorMittal plans $1.2 Billion Alabama mill

More Stories

U.S. Space and Rocket Center announces passing of Maria von Braun, wife of Dr. Wernher von Braun

Lifestyles

Athens Cheer heads to Orlando to compete for national titles

More Stories

Council on Aging rolls out new transportation van

News

Former Ardmore High School teacher arrested

More Stories

Singing River Smoke-O-Rama is set to return for a second year

More Stories

Local students earn prestigious recognition from Wallace State Community College

Local News

Sound of success: Athens native takes his faith and talent to the Grammys

More Stories

Teacher of the Year: Peyton Boldin

More Stories

Gov. Ivey invites students to apply for 2025 Summer Internship Program

News

State officials react to Trump’s second inauguration

National News

Trump, in his inaugural address, makes sweeping promises

More Stories

Teacher of the Year: Beth Tuten

More Stories

SEDC Board of Directors re-elects LCEDA’s Shockney

Local News

LCEMA: Travel advisory

Local News

ALEA updates on road conditions

News

Limestone County Schools to close Friday, Jan. 10

News

Athens City Schools closed Friday, Jan. 10