In late March, a federal district court ruled that Alabama Power, a utility serving over 1.5 million homes, can continue to charge an additional fee for homeowners with rooftop solar panels.
According to a report from the Alabama Reflector, U.S. District Court Judge Annemarie Carney Axon granted a motion from the Alabama Public Service Commission and Alabama Power to dismiss the lawsuit filed by plaintiffs aiming to rescind the fee.
Alabama Power said the charge is meant to ensure customers with solar who rely on the grid "pay their share" of system costs. Over the lifetime of an average solar system, homeowners would incur about $9,000 in additional costs, depending on their system's output.
Fees like this can change the math on a solar investment, but they do not necessarily outweigh the benefits. Even with added charges, many homeowners still see significant long-term benefits, and some even earn six figures in savings over the lifetime of their system.
To see how solar panels can transform your home's energy and your wallet, connect with the experts at EnergySage for more information, quick solar estimates, and competitive quotes.
The plaintiffs of the federal case expressed their disappointment with the ruling.
"I am frustrated that Alabama Power solar customers like me have to pay an extra monthly fee in order to reduce our power bills," Mark Johnston, an Episcopal priest and retired executive director of Camp McDowell, said.
"I want lower electricity bills and a better environment for my children and grandchildren," he added.
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This was "a disappointing day for Alabama Power customers who want to use solar energy to get relief from some of the highest electricity bills in the nation," Christina Tidwell, a senior attorney who represented the plaintiffs, said.
Critics said that the charges discourage homeowners from installing solar panels, which, especially when paired with battery storage, can help reduce strain on aging grids.
Data from the Solar Energy Industries Association shows that solar power in Alabama accounts for less than 1% of total energy production, while neighboring states generate 3.8% of their electricity from solar.
Regardless of your location or utility provider, more often than not, solar panels can help you save big on energy costs.
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If you're curious about making an upgrade, EnergySage has free tools to help you get started. Homeowners can save up to $10,000 on installation costs by consulting with EnergySage experts.
To see the average cost of solar in your area as well as details on local incentives, check out EnergySage's helpful mapping tool. It can help you lock in the best price for your home and budget.
Pairing solar panels with battery storage may be worth exploring if you want to keep your power on during outages, reduce reliance on the grid, or further lower your electricity bills by avoiding peak rates. Check out EnergySage's battery resources to learn more.
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