Alabama power purchase of rooftop residential solar
In Alabama, a typical residential solar panel system costs $11,690 to $33,400, depending on the size of your system and what financial incentives you qualify for. The federal solar investment tax credit (ITC) is the best financial incentive for most Alabama homeowners to buy solar panels.
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Alabama power purchase of rooftop residential solar
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Alabama Solar Incentives, Tax Credits & Rebates
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Alabama solar incentives, tax credits & rebates
In Alabama, a typical residential solar panel system costs $11,690 to $33,400, depending on the size of your system and what financial incentives you qualify for. Jump to insight
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Alabama solar incentives, tax credits & rebates
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Alabama Solar Incentives, Tax Credits & Rebates 2025
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6 FAQs about [Alabama power purchase of rooftop residential solar]
What incentives are available for solar conversion in Alabama?
The federal credit is an outstanding incentive no matter where you live, but it’s especially crucial in Alabama. This is one of the only benefit programs available to directly defray the cost of your system, and it’s by far the best incentive available to you for solar conversion.
Should Alabama pay for solar panels?
Instead of incentivizing solar installations, Alabama allows its largest utility, Alabama Power, to pay pennies on the dollar for excess energy generated by solar installations. This policy results in solar panel payback times being nearly the worst in the nation.
How much does a solar array cost in Alabama?
The average cost of a complete solar array in the state of Alabama is about $42,780 without any incentives, which is around $12,000 higher than homeowners pay in other states. This is mostly due to larger-than-normal systems required in this Southern state. But thanks to incentive programs, that won’t represent your true cost.
Does Alabama offer a solar rebate?
Unfortunately, Alabama does not offer any cash rebates for solar panels.
How much does solar cost in Alabama?
In Alabama, the average monthly savings of a 6-kW solar system are around $90. However, with a $30 monthly fee, your net benefit from solar is reduced by one third. Currently, Alabama Power's rate PAE and rate rider RGB mean that a solar purchase won't pay back its initial investment until after 15 years.
How does Alabama compensate for excess solar energy?
Instead of paying the full price for excess solar energy, Alabama allows its largest utility, Alabama Power, to pay pennies on the dollar for it.
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