Homeowners and Environmental Group Challenge Solar Fees
A federal judge has refused to dismiss a lawsuit against the Alabama Public Service Commission (PSC) over controversial fees imposed on customers using solar panels to generate their own electricity. U.S. District Judge Myron Thompson ruled on Monday that a group of homeowners and the Greater-Birmingham Alliance to Stop Pollution (GASP) can proceed with their lawsuit, which challenges the fees as a violation of federal law.
Solar Panel Fees Under Scrutiny
The lawsuit argues that the monthly fees—$27 for a 5kW solar system—violate the Public Utility Regulatory Policies Act (PURPA) of 1978, a law aimed at encouraging renewable energy production. The fees are charged by Alabama Power to customers connected to its electrical grid who also use solar panels for part of their energy needs.
Alabama Power has justified the fees, stating they are necessary to maintain the infrastructure required to provide backup power when solar panels don’t generate enough energy. However, environmental groups claim the charges dissuade customers from adopting solar energy in a state with abundant sunshine.
Environmental Groups Fight Back
Christina Tidwell, a senior attorney with the Southern Environmental Law Center’s Alabama office, criticized the fees as unjustified and said they diminish the financial benefits for customers investing in solar power. “We will continue our efforts to require the Commission to follow the law and not allow Alabama Power to unfairly charge customers who invest in solar,” Tidwell said in a statement.
Tidwell argued that the fees erode expected savings and make it “impractical to invest in solar power” for many Alabama residents.
Legal Battle Continues
The Alabama PSC and Alabama Power had filed a motion to dismiss the case, arguing that the federal court lacks jurisdiction. However, Judge Thompson’s decision allows the lawsuit to move forward. Both Alabama Power and the PSC have declined to comment on the ongoing litigation.
In 2021, the Federal Energy Regulatory Commission (FERC) rejected a request from environmental groups to take enforcement action against the Alabama PSC. However, two members of FERC expressed concerns that Alabama regulators may be violating federal policies meant to encourage renewable energy and reduce dependence on fossil fuels.
