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Alabama · AB

Solar Panels in Alabama:
Is It Worth It in 2026?

Alabama averages 1373.1 kWh per kWp per year with 5.4 peak sun hours per day. At 16.06¢/kWh, an 8 kW system saves roughly $1,764/year and pays back in about 8.6 years.

Alabama Solar at a Glance

Peak sun hours / day5.4 hrs
Avg solar yield1373.1 kWh/kWp/yr
Electricity rate16.06¢ / kWh
Avg payback (8 kW)8.6 years
Annual savings (8 kW)$1,764/yr
Net meteringFull retail net metering ✓

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Alabama

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

TVA Generation Partners program, property tax exemption on added value

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in Alabama

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax Exemption — Solar-added home value not taxed
Net Metering — Full retail net metering ✓

How Much Solar Power Do Alabama Cities Get?

Real PVGIS yield data and EIA electricity rates for all 3 cities. Click any city for detailed payback calculations.

Huntsville
1326.3 kWh/kWp · 8.9 yr payback
Birmingham
1376.4 kWh/kWp · 8.6 yr payback
Montgomery
1416.5 kWh/kWp · 8.3 yr payback
Mobile
1421.1 kWh/kWp · 13.6 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for Alabama.

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All Alabama incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Alabama: Frequently Asked Questions

Is solar worth it in Alabama?
Generally yes — solar makes financial sense in Alabama for most homeowners. The 8.6-year payback is near the national average. At 16.06¢/kWh, annual savings on an 8 kW system run approximately $1,367. Alabama Power's time-of-use rates make self-consumption especially valuable.
What solar incentives are available in Alabama?
Alabama homeowners can stack multiple incentives: the state solar incentives (federal ITC expired Dec 2025) (ITC) — $6,480 on a typical 8 kW system; a property tax exemption (solar-added home value not taxed); and net metering through Alabama Power. Alabama Power's time-of-use rates make self-consumption especially valuable.
How much electricity do solar panels produce in Alabama?
Alabama averages 1373.1 kWh per kWp of solar per year — 8% below the US average. An 8 kW system produces roughly 10,985 kWh/year, with a monthly average of 114.4 kWh/kWp. Output varies by location: southern Alabama produces more than the north.
How much do solar panels cost in Alabama?
The average 8 kW system in Alabama costs approximately $21,600.0 before incentives. After the 30% federal ITC ($6,480), your net cost is around $15,120. Prices range from $2.40–$3.20/watt installed depending on installer, panel brand, and humid subtropical climate.

Going Solar in Alabama: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Alabama. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Alabama average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 16.06¢/kWh in Alabama, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Alabama does not have a statewide solar tax credit, but utility rebates and net metering may still apply. TVA Generation Partners program.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Alabama typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Alabama: Alabama averages 1373.1 kWh/kWp/year with 5.4 peak sun hours/day. Electricity costs 16.06¢/kWh. An 8 kW solar system saves ~$1,764/year and pays back in 8.6 years. TVA Generation Partners program, property tax exemption on added value.