Alabama Gov. Kay Ivey signed the “Powering Growth” act into law, an “all-of-the-above” energy plan that focuses on expanding energy capacity, and developing prime sites for industrial and commercial development.
“In order to keep Alabama’s economy growing, we’ve got to make sure that we have the power to support it,” said Gov. Ivey in a statement. “That’s what Powering Growth is all about — making sure our energy infrastructure is robust enough to meet the demands of new industries, new jobs and a stronger future. This plan ensures we’re prepared to compete, not just with neighboring states, but on a national level.”
“By investing now,” she said, “we’re laying the groundwork for long-term growth – especially in areas that need it most.”
(See also: All-of-the above approach necessary for reliable and resilient grid)
The plan streamlines and removes regulatory delays so that energy infrastructure projects can move faster and at lower costs.
The governor’s office told pv magazine USA that while the legislation does not specifically address automated permitting software, “it introduces a specific timeline and process for permit applications related to electric transmission facilities, which helps drive industrial growth and economic development, particularly in rural areas.”
In doing so, the governor said this will make Alabama more attractive to industrial prospects that need speed to market and predictability in the planning process.
The legislation also aims to fix supply-chain bottlenecks by reducing government-caused delays that slow down site readiness and project approvals. It also accelerates access to critical materials and equipment for energy infrastructure.
Alabama Energy Infrastructure Bank
The legislation also establishes the Alabama Energy Infrastructure Bank, which is intended to fund energy infrastructure expansion to power sites. The bank will provide flexible financing for power infrastructure tied to industrial growth and job creation.
The act aims to issue up to $1 billion in bonds for energy infrastructure projects statewide, including renewable energy projects. The act will also fund an initial $50 million for acquiring long lead-time supplies.
Image: The Governor's Office of Kay Ivey
According to Gov. Ivey, the Alabama Energy Infrastructure Bank will leverage state funds to unlock private and federal investment without raising taxes.
Commerce Secretary Ellen McNair said energy availability consistently ranks as the number one factor in site selection for economic development projects, and noted that demand for energy is growing exponentially nationwide. “By investing in our energy infrastructure and addressing supply chain vulnerabilities – across both our urban and rural areas – we are laying the foundation for long-term economic prosperity and ensuring Alabama remains a premier destination for businesses,” she said.
Alabama was one of just two red states to enact policies to proactively work on anticipated future energy challenges this legislative session. The other state was West Virginia, which created designated districts for microgrids and data centers with a new specialized tax structure.
The Alabama Growth Alliance, a coalition of business and government leaders dedicated to driving economic development, identified energy infrastructure and supply chain resilience as key priorities. A statewide study commissioned by the Legislature and the Commerce Department identified the establishment of the Energy Infrastructure Bank as well as targeted growth projects that may help the State Industrial Development Authority in directing this funding mechanism.
“You don’t want to build a levee when the water is already rising,” said state Sen. Arthur Orr (R). “As energy demand is going to continue to accelerate in the future, we are laying the groundwork now through Powering Growth to ensure we are able to compete and win on economic development projects for decades to come.”
Last July, Gov. Ivey, who has been the state’s governor for eight years, created the National Clean Energy Week, held in September. But despite recent moves, the state is not known to have the friendliest solar policies.
The Alabama Public Service Commission (PSC) approved a rule in 2024 that significantly reduces the rate the state’s largest utility Alabama Power pays to independent power producers, such as solar producers. The rule imposes a $0.00193 per kWh fee for large-scale energy projects not owned by Alabama Power. The rule changes limit revenues for larger renewable energy companies.
The tax is similar to Alabama’s solar tax for rooftop solar. In 2013, the PSC approved Alabama Power’s request to impose a $5 per kW capacity reservation charge on rooftop solar customers, which has since increased to $5.41 per kW. According to Energy Alabama, “That’s “technical speak” for a tax that confiscates about half of all the money someone could expect to earn from their solar panel installation.” Alabama is ranked 51st for its rooftop solar capacity, according to the Solar Energy Industries Association (SEIA).
(See also: Coal lobby group drafted state utility commissioners’ letters to FERC)
Alabama ranks 26th in capacity and 49th per capita for its utility-scale solar and just 0.88% of the state’s electricity is from solar, according to SEIA. As of March 2025, Alabama had 757 people employed in the solar industry. In March, Alabama Power announced plans to develop the state’s first utility-scale battery energy storage system on the site of a former coal plant.
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