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State of Alabama Solar Resources

Programs promoting Geothermal, BioMass and certain Building Materials

GeothermalCentral Alabama Electric Cooperative, a Touchstone Electric Cooperative, offers the Touchstone Energy Home Program. Touchstone Energy Homes with a dual-fuel or geothermal heat pump qualify for rebates and a free water heater. In order to qualify as a Touchstone Energy Home, homes must follow seven of the 11 guidelines listed on the program web site. Rebates range from $400 to $1,200, depending on tonnage and system type. Touchstone Energy homes with an air-source, dual-fuel or geothermal heat pump are eligible for a free energy-efficient water heater.

BiomassThe Biomass Energy Program assists businesses in installing biomass energy systems. Program participants receive up to $75,000 in interest subsidy payments to help defray the interest expense on loans to install approved biomass projects. Technical assistance is also available through the program. Industrial, commercial and institutional facilities; agricultural property owners; and city, county, and state government entities are eligible. Interested parties must obtain loans from commercial lending institutions and submit repayment data to the Alabama Department of Economic and Community Affairs (ADECA) for interest payment assistance. ADECA pays the borrower directly, based on documentation of payment. The interest rates on loans should be no greater than 2% above the prime rate.

This statute allows individual taxpayers a deduction for the purchase and installation of a wood-burning heating system. The deduction is equal to the total cost of purchase and installation for the conversion from gas or electricity to wood when the system is used as the primary energy source for heating a home. The deduction must be taken for the taxable year during which the conversion was completed. Note that this incentive is for the conversion of an existing system and not for the first-time installation of a wood-burning system.

Building/Construction insulation materials
-Windows, Coolith tubes, heat exchangers, plantings etc

For improvements made in 2009 and 2010, you can get an income tax credit of up to $1,500 for installing efficient new windows, insulation, doors, roofs, and heating and cooling equipment in your home. However, efficiency criteria will vary dependant on when these items are installed.

Multiple renewables:Tennessee Valley Authority (TVA) and participating power distributors of TVA power offer a production-based incentive program to Valley homeowners and businesses for the installation of renewable generation systems from the following qualifying resources: solar, wind, low-impact hydropower, and biomass called Generation Partners. The energy generated from these renewable generation systems will count towards TVA's green power pricing program, Green Power Switch. TVA will purchase 100% of the output from a qualifying system at a premium of $0.12 per kilowatt-hour (kWh) on top of the retail electricity rate for solar and $0.03 per kilowatt-hour on top of the retail electricity rate for wind, low-impact hydro, and biomass. Payment is made in the form of a credit issued by the local power company on the monthly power bill for the home or business where the generation system is located. If a qualifying system produces more electricity than the customer consumes, payment for any excess credits will be issued either monthly or annually, at the discretion of the power company. All new participants in the Generation Partners program will receive a $1,000 incentive to offset the upfront cost of the qualifying system.

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