In 2020, the average price of solar panels in Alabama is $3.33 per watt. The typical cost of a solar power system installation of the 6kW in Alabama would cost around $20,000. This price does not reflect Federal Tax credit.
The Federal Investment Tax Credit – the government program also known as Investment Tax Credit (ITC). It allows you to claim 26 % of the total cost of the solar equipment and its installation as the tax credit and has no cap on its value.
Tennesse Valley Authority - if you are a customer of Tennesse Valley Authority you could get a $1000 rebate to offset the initial cost of solar power system installation.
Looking at the advantages and disadvantages of solar energy, one can clearly see that adopting solar is a great investment for many homeowners in Alabama. The latest technology development, decreasing solar equipment costs, and the great geographical location with plenty of sunshine make solar an attractive clean energy option in beautiful Alabama.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.