Alabama Solar Information

Alabama isn't a bad state for solar but far from the strongest. There is a state tax credit that reduces your income tax. Along with basically wiping out your state income tax although not required by the state the three major utilities servicing all of Alabama offer net metering. As always in Alabama you are entitled to the 30% federal tax credit.

№20

Alabama ranks in America for savings from installing solar panels on
6013.60 kWh

AC Energy output every year in Alabama in 4 kW system
5.35 kWh

Solar Radiation (kWh / m2 / day)
13 ¢ /kWh

The cost of electricity today in Central Alabama Electric Coop
28 ¢ /kWh

If you don't get solar. The forecast average utility price over the next 25 years

Alabama Solar Facts

$1.39
Average cost of a 4kw solar power system in 2019.
3 years
Average system payback period.
$59 994
Average lifetime savings.
5 ¢ /kWh
Levelized cost of solar energy.
5 kW
Recommended system size.

Choose relevant panels Calculate your system

How much do solar panels cost in Alabama
$1.39 per watt

Cash purchased solar system

Before 30% solar tax credit
$5 648 total

Estimated system cost

Before 30% solar tax credit
3 years

Average system payback period

Energy from the sun is free. However, capturing and utilizing this free energy does have associated costs, such as installing and maintaining the equipment needed to harness the energy.

Residential System Pricing

Solar Thermal System Pricing

Solar water heating systems generally produce the biggest economic return on investment. A typical residential solar water heating system sized for a family of four costs about $6,000 to $8,000.

Solar Electric System Pricing

The initial investment required to purchase a residential solar electric system can be significant. A turn-key system equipped to produce enough power for the average home can be as much as $30,000 - $36,000, which is why most homeowners choose a solar electric system that is designed to offset only a portion of the home's electrical energy consumption.

An average home in Alabama consumes 1,200 kWh of electricity each month. A solar electric system rated at one kilowatt will produce approximately 100 kWh of electricity per month in Alabama, which means the average house would require an approximately 12-kilowatt (kW) system with battery back-up in order to meet 100% of the household electricity needs.

Installing a solar electric system without batteries averages between $2,500 to $3,000 per kW. Therefore, the average homeowner would have to make an initial equipment investment of $30,000 to $36,000 for a 12-kW system. In Alabama, with electric costs averaging $0.125/kWh, the annual electric utility cost for the average homeowner would be $1,800.

Without incentives, it would take over 20 years to get a return on the investment of a whole-house solar electric system.

Tax Credits and Incentives

For a typical household, the prospect of paying up to $100,000 for solar panels is prohibitive; however, incentives in the form of tax credits and low interest loans can help offset the cost. A 30% federal tax credit is currently available through 2016 for installing a solar energy system.

Tell us how much you are spending on electricity and we’ll calcalute how much you can save if you get solar

kWH

$ per kWH

According to Central Alabama Electric Coop, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.

I am claiming the 30% Federal Tax Credit (ends 2019) i

When you install your solar system, 30% 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).

System size

4.05 kW medium system size

Provides up to 80% of electricity consumption

$1.39 per watt

Average system cost

13 x 325 watt

solar panels
+
13 x 300 watt

microinverter
+
1 x 5 000 watt

inverter

$101.53 / month

Estimated savings on your average quarterly bill

$5 647.75

Estimated system cost
Excludes 30% Federal Tax Credit.
This price does not include the installation cost.
3 years

Average system payback period
$59 993.80

Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

13 ¢ /kWh

The cost of electricity today in Central Alabama Electric Coop
28 ¢ /kWh

If you don't get solar. The forecast average utility price over the next 25 years
5 ¢ /kWh

levelized cost of solar energy