MONTGOMERY, ALABAMA — When Jim Bankston installed solar panels on his Tuscaloosa home, he estimated it would trim his electricity bill, and the savings would eventually offset the cost of the hefty investment.

After it was running, he noticed fees on his Alabama Power bill that he didn’t understand and learned there was a $5-per-kilowatt capacity charge on customers who use solar panels to produce a portion of their own electricity.

“I am having to pay them just to use the photons that are hitting my own roof,” Bankston said.

He had estimated the system would eventually pay for itself in 20 years. With the fees included, he said it could be twice that. “I won’t be alive anymore, maybe,” the 45-year-old radiologist says wryly, also noting that it also might be beyond the life span of the panels he installed.

The Alabama Public Service Commission will hold a Nov. 21 hearing on a challenge to the fees charged by Alabama Power. The utility says the fees are needed to provide backup power for customers. But critics say the fees are some of the highest in the […]

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