Huntsville’s solar ambitions: 5 key insights

single-meta-cal December 13, 2024

Pop quiz: What’s the most abundant and cost-effective form of energy? If you answered, “solar power,” give yourself a point!

Solar energy isn’t just about shiny panels soaking up sunlight; it’s a renewable resource that harnesses the sun’s energy to generate clean, sustainable electricity. This environmentally friendly energy source operates without emitting harmful greenhouse gases or toxic pollutants, making it essential for a healthier planet.

In Huntsville, this forward-thinking approach to energy generation is gaining traction as a response to the rising energy demands of a growing population. The City and Huntsville Utilities are prioritizing a shift toward clean solar energy to meet future energy needs.

A group of people cut a red ribbon while standing on a gravel road. There are solar panels behind them and a chain fence.

In November 2024, Toyota cut the ribbon on a $49 million solar facility spanning 168 acres and generating up to 62,000 megawatt-hours annually.

In his 2024 State of the City address, Mayor Tommy Battle unveiled plans for a groundbreaking 200-megawatt solar power plant, set to be developed by Huntsville Utilities on a 748-acre site near the Tennessee River. This initiative is part of a larger strategy aimed at enhancing the city’s sustainability efforts.

“With our city’s growth, we must ensure that our energy sources are clean and reliable,” Mayor Battle said. “Investing in solar energy is a crucial step toward a greener, more sustainable Huntsville.”

Here’s are five key insights into Huntsville’s solar ambitions:

Meeting a growing need

Huntsville’s need for additional power is evident, particularly when examining the growth of Huntsville Utilities’ customer base over the past decade. In 2014, the utility served 176,000 customers; today, that number has risen to about  225,000, a 25% increase. Furthermore, Huntsville Utilities anticipates inspecting approximately 3,000 new homes in 2024 to ensure compliance with Alabama and TVA energy standards.

The timeline for transition

Transitioning to solar energy isn’t an overnight process. Significant due diligence is required, including land and environmental surveys and studies to determine the project’s overall viability. For example, TVA mandates that solar generation not exceed two-thirds of the minimum daylight load for any electric substation.

“We need to figure out how to build this in a way that we can fully absorb the energy back into the Huntsville system,” explained Huntsville Utilities President and CEO Wes Kelley. “TVA doesn’t want solar generation to impact electric stability, so we must evaluate all our substations and their daylight loads.”

The solar project is expected to take three to six years, with construction slated to begin in late 2025 or early 2026.


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A rich history of solar in Huntsville

Solar power isn’t a new idea for Huntsville. Twelve years ago, Redstone Energy Group established a small solar farm near Memorial Parkway and Redstone Arsenal. Additionally, Toyota Alabama has been instrumental in advancing the city’s solar initiatives. In November 2024, Toyota cut the ribbon on a $49 million solar facility spanning 168 acres and generating up to 62,000 megawatt-hours annually.

Accessibility for all

Huntsville Utilities’ Green Connect program will allow individuals, not just large corporations, to benefit from clean solar energy. This initiative connects residential customers interested in solar generation systems — whether they choose to include battery storage — with reputable installers. Participants must meet specific requirements, including generation demands and insurance obligations.

For more details, visit Huntsville Utilities’ solar FAQs page.

Affordability and Incentives

While Alabama doesn’t offer state tax incentives for solar systems, the federal Residential Clean Energy Tax Credit provides a 30% credit on the total cost of a solar panel system. According to Energy Sage, the average cost for a 5kW solar panel system in Alabama is about $16,651. With the 30% tax credit, that cost drops to approximately $11,656. On average, solar panels have a payback period of five to ten years, with potential lifetime savings of $25,500 to $33,000 on electricity bills.

As Huntsville embraces solar energy, the community is taking significant steps toward a sustainable and environmentally friendly future. The commitment to solar power not only meets immediate energy needs but also paves the way for a greener tomorrow.