George Dodd/EyeEm/Getty images
Why trust SaveOnEnergy?
Learn MoreAt SaveOnEnergy, we work to offer accurate information with editorial integrity.Our partners do not direct our editorial content, though we may reference their products in our posts. Read more about how we make money.
Key Points
- Alabama residents can save thousands over the life of their panels by installing a solar system.
- Prices for solar panels have dropped by 54% over the past decade.
- Federal and state incentives can help homeowners recover part of their solar installation cost.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
Solar power in Alabama
Alabama solar power accounts for a small but growing segment of the state’s overall energy consumption. Solar prices have dropped 54% over the last decade, according to the Solar Energy Industries Association (SEIA). Homeowners can save thousands on energy costs over the long term by going solar. However, you should be prepared for an upfront cost between $20,000 and $35,000, depending on your system requirements.
Solar power in this sunny state is becoming an attractive investment to residents and businesses that want to increase their energy savings in an environmentally friendly way. Alabama has installed 813 megawatts (MW) of solar thus far, enough to power over 88,000 homes. Discover more about solar power in this southern state with SaveOnEnergy. We’ll help you understand solar industry basics like costs, incentives, the installation process, and more.
Get your free solar savings estimate
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
Alabama solar panel cost
Investing in Alabama solar energy offers several benefits, such as increased energy independence and more stable electricity rates. If you’re trying to calculate how much a solar panel installation will cost, keep in mind solar panel prices are typically shown in dollars per watt.
According to Lawrence Berkeley National Laboratory, the average nationwide price per watt is $3.67,with an average system size of 8.6 kilowatts (kW). The typical installed cost of a solar system is $31,558. Solar panels can be customized according to your home’s energy needs, roof size, and more. All of these factors impact the overall cost of your installation. Taking advantage of the Residential Clean Energy Credit and other state incentives and rebates can help reduce 30% or more of your solar cost.
How does Alabama solar save you money?
Alabama has higher electricity bills than most of the U.S. — with the current average monthly bill costing $165.19. Switching to solar can help you lower or eliminate your electric bills once you pay off the full installation cost of your system. The potential payback period for a solar array in Alabama purchased at the national price is about 11 years. Most solar systems have a 25–30-year lifespan, which means you could have one to two decades of cheap or free electricity.
The best Alabama solar panel incentives or rebates
Rebates and other incentives help offset the upfront cost of installing solar panels. Some tax incentives are time-sensitive, so investing in solar sooner rather than later may help you guarantee these savings.
| Incentives sources | Details |
|---|---|
| Alabama Power Net Metering | Customers enrolled in Rate PAE earn electricity bill credits for energy sent back to Alabama Power. |
| Personal Tax Exemption for Energy Conservation Subsidies | This legislation states that utility customers participating in energy conservation programs don’t have to claim electricity rate reductions or electric bill credits earned as taxable income. No action is needed on the part of the homeowner. |
| Residential Clean Energy Credit | You can receive a 30% federal tax credit for solar system expenses through 2032 if you install solar on your primary or secondary residence. |
Solar incentives in Montgomery
In addition to the 30% federal clean energy credit, Montgomery residents may be eligible for rebate and loan programs from local utilities. These include:
- Alabama Power
- Dixie Electric Cooperative
- Central Alabama Electric Cooperative
These utilities have loans or rebate programs to help reduce your upfront solar cost. To learn more about utility rebates in your area, scan the Database of State Incentives for Renewables and Efficiency (DSIRE).
Why choose Alabama solar power?
The best solar panels offer more than just green energy. Solar panels for your home can also lower monthly energy costs and increase your household’s energy independence.
Lower energy costs
Solar power generatesrenewable energy when the sun is shining. As a result, you’ll be creating your energy instead of paying for all of your home’s energy consumption on your monthly electricity bill. You may be able to earn electric bill credits by selling excess solar energy to the grid through local net metering programs. Over time, these savings offset the initial cost of solar panel installation.
Establish energy independence
A residential solar installation can strengthen your energy independence and reduce your reliance on the power grid. With the addition of a solar battery, you can store excess solar energy and prepare for a temporary power outage. A solar battery can also save you the frustration of paying as much for peak energy prices as someone who depends entirely on the grid for their power supply.
Go green
Solar energy is a green energy source. Your home will have a smaller carbon footprint after you install efficient solar panels because you won’t be contributing to carbon dioxide emissions. Plus, your home may prove more attractive to potential buyers committed to green energy if you intend to sell it in the future.
Should I buy or lease my solar panels?
There are multiple financial paths to accessing solar panels. Some people pay with cash or finance their solar array, while others opt for a lease, power purchase agreement, or community solar. Discover the pros and cons of these different ways of getting solar panels at your home.
| Payment method | Benefits | Drawbacks |
|---|---|---|
| Cash purchase | Largest amount of savings over time, solar system ownership, eligible for incentives, electricity bill savings | High upfront cost |
| Solar loan | Solar system ownership, eligible for incentives, electricity bill savings | Monthly payments, interest fees |
| Solar lease | Avoid upfront costs, little to no maintenance, electricity bill savings | No ownership, ineligible for incentives, potential rate increases |
| Power purchase agreement | Avoid upfront costs, little to no maintenance, electricity bill savings | No ownership, ineligible for incentives, potential rate increases |
| Community solar | No upfront costs, power home with clean energy, electricity bill savings | No ownership |
Alabama solar panel companies
The SEIA reports that the Alabama solar industry supports nearly 700 jobs. Some solar companies use door-to-door sales or frequent calling to reach out to residents. We take a customer-centric approach at SaveOnEnergy. To learn more about your potential solar savings, fill out the solar estimator on this page. You can connect with an energy expert to find a trusted solar installer near you who can discuss personalized solar options.
| Solar installer | Year founded | Financing options | Warranty terms |
|---|---|---|---|
 | 2011 | Cash purchase or solar loan | 25-year manufacturer warranty and production guarantee |
 | 1985 | Cash purchase, solar loan, or lease | 25-year full system warranty |
Beware of free solar panel scam in Alabama
There is no such thing as free solar panels. You should avoid entering into any agreement with a company promising you this. Some unscrupulous sales agents may try to get you to sign up for something by claiming it is free when the costs are actually expensive. By using the up-to-date information provided by SaveOnEnergy, you can stay informed and make the right decision when picking your solar panel installer.
Important solar installation factors to consider
Several factors should apply when considering solar panels for your home, such as:
- Condition of roof: Consider whether the condition, age, and angle of your home’s roof are appropriate for supporting panels. The Department of Energy advises that solar panels perform best on south-facing roofs with an angle of between 15 and 40 degrees.
- Neighborhood regulations: You may need approval from your homeowners’ association (HOA) or neighborhood organization before installing solar panels. Your installer can also help you work through any potential rules.
- Available sunlight: A solar installer can assess if your roof is exposed to enough sun each day to make your investment worthwhile. Rooftops in the shade of trees may not be the most efficient. Consider removing any obstructions from direct sunlight before installing solar on your property.
Learn more about residential solar panels
Solar panel FAQs
The national average cost for a residential solar panel installation is $31,558. You may pay a similar figure in Alabama. However, the exact cost will vary depending on several factors, including your energy usage, the size of your home, and its location. Reputable solar installers conduct an inspection of your home before providing you with a quote.
Yes, absolutely. The cost of solar in Alabama has been declining for more than a decade, and the state enjoys plenty of sunshine. The Residential Clean Energy Credit allows you to recover 30% of the installation cost, making an Alabama solar investment even more attractive. Switching to solar can lead to long-term energy bill savings while reducing your household’s carbon footprint.
Your exact savings will depend on how much energy your panels generate and what your energy needs are. Over the typical 25–30-year lifespan of solar panels, you could save thousands on energy costs in Alabama. Your biggest savings will come during the day when the sun shines. If you install a battery, you can also store solar power to use when the sun goes down.
Many solar panel installers operate across Alabama. You should check their reviews before making a choice. SaveOnEnergy can help you locate a vetted solar panel installer. Contact our experts today by filling out our solar estimator or calling the number on this page.
Solar panels help the environment because they don’t produce carbon emissions when generating energy. Reducing carbon dioxide levels in the atmosphere is an important way to combat climate change. Solar is also a renewable energy source because the panels can generate power whenever the sun shines. On the other hand, fossil fuels like gas and coal release carbon dioxide into the air when burned to produce power. They are not renewable because the source is not replenishable, unlike sunlight.