Table of Contents
- How much do solar panels in Alabama cost?
- Solar panel pricing vs electricity costs in Alabama
- Average solar panel costs by system size in Alabama
- Current solar incentives & rebates in Alabama
- Is Alabama good for solar?
- What not having solar panels in Alabama will cost you
- What does the cost of solar panels in Alabama depend on?
- Solar panel cost FAQs for Alabama
How much do solar panels in Alabama cost?
Going solar in the month of November, 2024 in Alabama averages out to $3.97/W.
You should expect the price to be $3,970, on average, for every 1 kW (or 1000 watts) of solar energy your solar panel system can produce. A 5 kW panel install in Alabama will typically cost you $13,895 after the 30% federal tax credit. Your energy consumption levels might require a larger system.
Solar panel pricing vs electricity costs in Alabama
Across Alabama, the average electric bill for an energy user is $172.45, with an average monthly usage of 1,155kWh. Compact residences, including duplexes, are also reflected in the numbers cited in the prior sentence.
In November 2024, the electricity rate in Alabama averages 14.93¢ per kWh.
The average electricity consumer in Alabama has to have a 10 kW or higher solar setup to take care of their full energy usage demands. Currently, 10 kW setup costs $27,790 after deducting the 30% federal income tax credit.
Average solar panel costs by system size in Alabama
Presented below, you will find a price breakdown for multiple solar panel system sizes set up in Alabama. Although a more extensive solar installation comes with a larger expense, it also provides greater electricity savings and higher income tax credits.
Check a cost benefit analysis in the solar panel cost calculator below and to the right, for an average electric bill of $172.45 in Alabama. For more specific results, just swap the $172.45 with whatever your usual electricity bill is.
| System Size | Roof Size Min. space required | Electricity Value Annual Production | Est. Price |
|---|---|---|---|
| 6kW | 429 ft² | $1,339 a year | $16,674 |
| 7kW | 501 ft² | $1,562 a year | $19,453 |
| 8kW | 572 ft² | $1,785 a year | $22,232 |
| 9kW | 644 ft² | $2,008 a year | $25,011 |
| 10kW | 715 ft² | $2,232 a year | $27,790 |
Current solar incentives & rebates in Alabama
The REAP Grant can fund anywhere from 80% to 100% of the expenses associated with setting up solar energy or wind turbines for rural small businesses and farmlands.
For those looking into residential solar, the 30% federal income tax credit is offered to most people, which makes solar a feasible option in many states. In conjunction with federal efforts, state and local programs help to promote the use of solar power.
In Alabama, 4 solar rebates and incentives are currently available from different utilities and government agencies.
Is Alabama good for solar?
If you expect to own your residence longer than the solar system's payback period, solar panels are a smart investment in Alabama. Installing a 5 kW solar system in Alabama will, on average, save you $27,492.86 over 20 years, and you can expect to break even in about 7 years.
What not having solar panels in Alabama will cost you
Not installing solar panels or any other backup energy system leads to missing the previously noted savings and full dependence on your electric utility for electricity. Recent news examples have shown that full reliance on your utility provider is not always ideal.
Over the past few years, customers in Alabama have faced an average of 1.72 utility outages each year. On average, each outage lasts for 206.39 minutes. Major events like vandalism, aging infrastructure or wildfires can considerably extend these durations.
With or without a backup battery, a solar panel system could ease the stress of future power disruptions you might experience.
What does the cost of solar panels in Alabama depend on?
- Your Energy Needs
- Make & Model
- Solar Panel Type
- Your Property
- Labor Rates
- Permitting & Interconnection
Bigger solar panel systems are more expensive, but the cost per watt decreases as well. A larger system that can completely cover your typical electricity bill would lead to the biggest savings long-term.
Solar panel cost FAQs for Alabama
What do solar panels cost in Alabama?
As of November, 2024, the average solar panel installation cost in Alabama has reached $3.97/W. After federal tax credits, the installation of a 5 kW solar panel system in Alabama is estimated to cost $13,895.
What incentives are available for solar in Alabama?
If you live in Alabama, you can find 4 rebates and incentives through different utilities and government agencies. Furthermore, almost all individuals are entitled to the 30% federal income tax credit.
What solar financing options are available to me?
While paying cash provides the most savings, various financing options for solar panels exist that also make financial sense. Financing options from installers will often be detailed in your initial quotes.
Is it worth it to get solar panels in Alabama?
Yes, on average, 5 kW solar panels in Alabama pay for themselves in 7 years, with homeowners saving approximately $27,492.86 on electricity over 20 years.
Will Alabama pay you to get solar panels?
While Alabama does not currently provide payments for solar installations, all U.S. residents can utilize the 30% federal income tax credit for such projects.
Can you get free solar panels in Alabama?
In Alabama, there are no free solar panel programs yet, but the 30% federal income tax credit, which most US citizens can access, greatly reduces the cost of installing solar panels.