See how much it will cost to install solar panels for your home in Alabama
Our estimates used by
Solar power in Alabama
Last fact-checked on January 19, 2023, by Catherine Lane
There is some room for improvement when it comes to solar power in Alabama. There are no state-based incentives and there is no net metering policy in place. Also, there is no renewable portfolio standard, which is often what pushes utilities to create solar rebates for customers.
Despite the lack of incentives, Alabama receives plenty of sunlight, so a solar system here will produce more electricity than a system in other areas of the country.
Residents of The Heart of Dixie can also take advantage of the 26% federal tax credit.
Compare solar quotes from the top solar companies in Alabama
Alabama solar power facts
$2.69 watt
Average cost: 5kW solar power system
?8 Years 10 Months
Average payback time
$53,928
Average lifetime savings
?5¢ kWh
Levelized cost of solar energy
21¢ kWh
If you don't get solar
?15,400 kWh
Annual power production
Cash flow graph based on cash purchase of a 12.15kW system
This 12.15kW system would offset 100% of your energy usage if your typical monthly bill in Alabama is $154, however, your situation may vary so try our solar calculator to get a result tailored to you.
How much can solar panels save you in Alabama
Average total cost of solar panel installation in Alabama
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $5,964 | $6,441 |
| 4kw | $7,756 | $8,376 |
| 5kw | $9,415 | $10,168 |
| 6kw | $10,962 | $11,839 |
| 7kw | $12,397 | $13,389 |
| 8kw | $13,776 | $14,878 |
| 9kw | $14,994 | $16,194 |
| 10kw | $16,100 | $17,388 |
How much do solar panels cost in Alabama?
$2.69 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.04 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Alabama?
The advantage of installing solar panels in Alabama is that the state receives excellent sunshine, so a solar system here will produce a lot of energy.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
The disadvantage of installing solar panels in Alabama is that there is hardly any policy or legislation regarding solar power, so there is a lack of incentives and rebates for installing solar. There is no net metering policy, so utilities are not required to compensate customers for excess electricity their solar system produces. The state’s only investor-owned utility, Alabama Power Company, does provide compensation for surplus energy a solar system produces, but solar customers also must pay a fee for having solar.
However, because of the 26% federal tax credit, now is the best time to go solar in Alabama.
Best solar companies in Alabama
Find local city information
Find local information for cities in Alabama
Compare solar quotes from the top solar companies in Alabama
How much electricity will solar panels produce in Alabama
Solar panels produce different amounts of energy in different locations.
Around the Montgomery area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,441kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in Alabama?
Tax exemptions
Alabama does not have a statewide property tax or sales tax exemption. However, the state does have a local option for tax exemptions. This means that if a municipal or county government decides they want to exempt the assessed value of a solar system from property or sales taxes, they can, but it is not required throughout the state.
Alabama Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Alabama, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Alabama using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Alabama
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Alabama or Montgomery ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Alabama solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Alabama
Check out all of the ways energy providers of Alabama can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Local Option - Sales and Use Tax Exemption | State | Sales Tax Incentive |
| Local Option - Property Tax Exemption | State | Property Tax Incentive |
| Alabama Power Company - Net Metering | Utility | Net Metering |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
