Residential Pricing - Renewable & Alternate Energy Rates | Alabama Power

Residential Pricing & Rates

Renewable and Alternative Energy Rates Overview

For more than a decade, Alabama Power customers have partnered with us in supporting renewable energy.

These partners value renewable energy – which can cost more than traditional energy sources – and have invested in efforts to promote renewables.

Alabama Power’s Renewable Energy Certificate (REC) program allows customers to purchase Renewable Energy Certificates associated with energy generated from renewable sources such as wind and solar.

Purchasing RECs is a way for individuals and businesses to support renewable energy development. You can purchase a REC for as little as $1.25 a month.

Details of the program are included below. To learn more and to sign up for the Renewable Energy Certificate program, call Alabama Power Customer Service at 1-800-990-2726.


What is a REC?

  • One REC represents the environmental attributes and benefits associated with 1,000 kilowatt-hours (kWh) of electricity generated from a renewable fuel source.
  • Such renewable sources include solar or wind farms, low-impact hydro-electric facilities, or biomass generators.
  • RECs are a commodity that can be separated from the energy they were generated with and “bundled” with energy customers purchase for their homes or businesses.


How does the purchase work?

  • You can purchase one REC for as little as $1.25 per month for a period of 12 months. Or you can choose to purchase multiple RECs.
  • The cost is in addition to your regular monthly charges.
  • At the end of 12 months, you will receive a certificate that shows the number of RECs you have purchased.
  • When a REC is bundled with 1,000 kWh of energy, that 1,000 kWh becomes classified as “green” or “renewable” energy. So, when you pair a REC with energy you purchase for your home or business, you get the exclusive right to claim that you were served with the renewable energy associated with the REC. Customers who enroll in the REC program can therefore ensure that all or part of their electricity usage comes from renewable resources, supporting the continued development of environmentally-friendly generation technologies.


How many RECs does it take to match your energy consumption?

  • It depends on your average annual usage.
  • For example, if you want to green-match the entire energy usage in your home and you use approximately 10,000 kWh per year, you would purchase 10 RECs. This would cost you an additional $12.50 per month on your power bill.
  • Or, you may decide to green-match only some of your energy. A customer service representative can help you choose what’s best for you.


To learn more and to sign up for the Renewable Energy Certificate program, call Alabama Power Customer Service at 1-800-990-2726.

More information about RECs is available from the EPA’s website:

The billed amount for your REC purchase will be shown on the back of your power bill as a separate line item. The cost of each REC is $15, and will be billed at the rate of $1.25 per month for 12 months.

You may choose to end your participation before the end of the 12-month billing period. By doing so, you will not receive a certificate. You must call Alabama Power at 1-800-990-APCO (2726) to cancel your participation. The program automatically renews for another year after the 12-month period unless you notify Alabama Power of your wish to cancel.



Purchase of Alternate Energy

Rate PAE applies to customers with distributed generation units, such as a solar panel array or a wind turbine, and would like to sell the excess energy back to Alabama Power.


Purchase of Alternate Energy

Special Rules Governing Application of Rate PAE