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Solar Panel Cost in Alabama

Average costs, savings, and incentives for solar installations across Alabama.

$2.95
Avg Cost/Watt
4.9 hrs/day
Peak Sun Hours
$0.132/kWh
Electricity Rate
Avoided Cost
Net Metering

Estimated Savings for a Typical Alabama Home

Based on a $150/month electric bill

System Size
7.7 kW
Gross Cost
$22,805
Federal Credit
-$6,841
State Incentive
None
Net Cost
$15,963
Annual Savings
$1,460
Payback Period
10.9 yrs
25-Year Savings
$33,907
CO₂ Offset/yr
10,176 lbs

Alabama Solar Incentives

30%

Federal Investment Tax Credit (ITC)

Deduct 30% of your total solar installation cost from your federal taxes. Available through 2032 with no dollar cap.

Net Metering Policy: Avoided Cost

Top utility in Alabama: Alabama Power. View full incentives detail →

Solar Costs by City in Alabama

City Annual Savings Payback (yrs) Population Utility
Birmingham$1,46010212,237Alabama Power
Montgomery$1,4609.3199,518Alabama Power
Huntsville$1,46011.5190,582Alabama Power
Mobile$1,46010.3187,041Alabama Power
Tuscaloosa$1,46011.899,543Alabama Power
Hoover$1,4609.784,126Alabama Power
Dothan$1,46010.568,001Alabama Power
Auburn$1,4601163,118Alabama Power
Decatur$1,4609.652,942Alabama Power
Madison$1,4609.948,174Alabama Power

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Quick Facts: Alabama

  • ⚡ Avg rate: $0.132/kWh
  • 🌞 Peak sun: 4.9 hrs/day
  • 🏭 Top utility: Alabama Power
  • 📋 Net metering: Avoided Cost
View all Alabama incentives →