AlabamaSolar Panel Costs & Savings
Alabama averages 4.5 hrs of peak sun per day with an average payback period of 11.2 years. Homeowners can save $28,400 over 20 years.
Peak Sun Hours
4.5 hrs
per day
6kW System Cost
$17,700
before incentives
Payback Period
11.2 yrs
average
20-Year Savings
$28,400
estimated
Solar Cost Breakdown in Alabama
| Item | Amount |
|---|---|
| 6kW System Cost ($2.95/W) | $17,700 |
| Federal Tax Credit (30%) | -$5,310 |
| Net Cost | $12,390 |
Net Metering
Partial Net Metering
Electricity Rate
14.87¢/kWh
Avg Monthly Bill
$163/mo
Solar Incentives in Alabama
Federal Solar Investment Tax Credit (ITC)
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Solar Potential by ZIP Code in Alabama
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 36301 | Dothan | 4.7 hrs | $1,257 | 9.9 yrs |
| 36101 | Montgomery | 4.6 hrs | $1,231 | 10.1 yrs |
| 36601 | Mobile | 4.6 hrs | $1,231 | 10.1 yrs |
| 36001 | Prattville | 4.6 hrs | $1,231 | 10.1 yrs |
| 36401 | Evergreen | 4.6 hrs | $1,231 | 10.1 yrs |
| 35004 | Moody | 4.5 hrs | $1,204 | 10.3 yrs |
| 35201 | Birmingham | 4.5 hrs | $1,204 | 10.3 yrs |
| 35401 | Tuscaloosa | 4.5 hrs | $1,204 | 10.3 yrs |
| 35601 | Decatur | 4.5 hrs | $1,204 | 10.3 yrs |
| 35801 | Huntsville | 4.5 hrs | $1,204 | 10.3 yrs |
| 35001 | Alabaster | 4.5 hrs | $1,204 | 10.3 yrs |
| 35501 | Jasper | 4.5 hrs | $1,204 | 10.3 yrs |
| 35901 | Gadsden | 4.5 hrs | $1,204 | 10.3 yrs |
| 36201 | Anniston | 4.5 hrs | $1,204 | 10.3 yrs |
Compare With Other States
More Data for Alabama
Frequently Asked Questions
How much do solar panels cost in Alabama?
A typical 6kW solar system in Alabama costs approximately $17,700 before incentives. After the 30% federal tax credit ($5,310), the net cost is approximately $12,390.
How long does solar take to pay for itself in Alabama?
The average solar payback period in Alabama is 11.2 years, slower than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does Alabama have net metering?
Alabama has partial net metering. Some utilities offer net metering programs with varying credit rates.
How much sun does Alabama get for solar?
Alabama averages 4.5 peak sun hours per day, which is 0.0 hours below the national average. A 6kW system produces approximately 9,855 kWh per year.
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Data verified March 2026 · Source: NREL, DSIRE, EIA