State Policy Description

Alabama - Net Metering

Policy Component information last updated August 03 2017

Description

Prior to Net Energy Metering (NEM) policies, utility customers who installed a solar or other renewable generation system had two options for dealing with excess generation. One, they could certify it as a qualifying facility under the Public Utility Regulatory Act (PURPA) of 1978 and sell that energy at the utility’s avoided-cost rate. As an alternative, consumers could install batteries to store the energy produced by their systems to deliver the power when they needed it. With the advent of NEM policies, the economic incentives for installing distributed energy systems improved, and NEM has become one of the most important policy tools for supporting distributed generation For more information, see the full policy brief.

For more information on the components of the policy see the full policy brief.

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