Alabama is a sunny southern state that gets on a minimum of 4.23 peak sun hours per day. Many areas of the state get a lot more sun, which helps Alabama rank close to the middle compared to other states in the sunshine. Unfortunately, the state government has not done a lot to encourage solar development in Alabama so installing solar panels might still be quite expensive. But with the rising cost of electricity in the state, solar is a very smart investment option.
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 your 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 being phased out by 2022.
Most people are eligible to claim this credit (you must owe federal taxes to be eligible).
Example of 4 kW system calculation in Minnesota for electricity bill $100