The state of Alabama is located in the Southeastern territory of the USA. Alabama lies in the Sun Belt region of the United States which generally extends from Southeast to Southwest. This region receives an abundance of sunlight and the climatic conditions are considered quite favorable for the production of solar energy through the use of photovoltaic technology. Unfortunately, Alabama has fallen short of harnessing its true potential to produce solar energy.
Among all states of the USA, Alabama occupies the 13th position for having the greatest solar potential and it is the 8th most economically viable state to benefit from solar installations. Yet, solar energy’s contribution to the state’s energy mix stands at a meager 0.26%, whereas its true potential is far greater. According to estimates, solar power is sufficient to meet 29.8% of Alabama’s electricity demand.
Solar in the Southeast – an independent blog – declared that Alabama occupies the last spot in the seven-state southeastern region. The other six neighboring states are harnessing the power of the sun at a much rapid pace to meet their energy demands. If Alabama introduces more solar-friendly laws and provides economic incentives to businesses, the cost of energy will reduce significantly and the community will have a more resilient and reliable power infrastructure, turning Alabama into an energy secure and surplus state.
The major impediment to Alabama’s solar industry is the hostile and non-profitable business environment. Alabama has failed to create a business-friendly environment for the proliferation of renewable energy. One such quotable example is the imposition of a high fixed cost on commercial and other types of solar systems by Alabama Power. Alabama Power is the state’s official electric utility company that supplies electricity to 1.5 million customers. It has imposed a monthly fee of $20-32 on all average-sized systems which acts as a major detriment to the wide uptake of solar power by businesses and other entities operating in Alabama.
A snapshot of Alamaba’s solar industry is as follows:
- 283.1 MW of installed capacity
- Total number of installations: 157 units
- National ranking: 35th state
- Growth projections indicate that the installed capacity will increase to 1,349 MW and the ranking will improve to 27 in the next five years
- The current investment in solar power stands at $339 million
- Current no. of solar jobs: 481
- 42 solar companies in the state, their distribution is as follows:
- 18 manufacturers
- 11 installers
- 13 others