Why Go Solar in the State of Alabama?

Alabama has potential and opportunity for solar energy; still, it has room for improvement. Alabama enjoys enough sunshine, which can harness enough carbon-free energy and creating solar jobs. Using different incentives, Alabama aims to make solar more attractive and affordable. The incentives include Federal Solar Tax Credit, Alabama Sales and Use Tax Exemption, Alabama Property Tax Exemption, Tennessee Valley Authority – Green Power Providers, and Net Metering makes solar energy more attractive and affordable. 

Solar panel systems can make you energy independent. Moreover, you can save a lot of cash over its lifetime. The state has made a dedicated effort to invest in solar, an easy choice for energy-conscious consumers


National solar ranking

 36th (51st in 2020)

Solar Installed (MW)


Percentage of State’s Electricity from Solar

30,531 homes

Percentage of State’s Electricity from Solar 


Solar Jobs


Total Solar Investment in State

$339 million


Prices have fallen

45% over the last 5 years

Growth Projection and Ranking


1,667 MW over the next 5 years (ranks 18th)

Number Of Installations


Is going solar worth in Alabama?

The Alabama solar panel system installation ranges from $11,140 to $13,615, which imply $2.53 ($/W). The Alabama solar panel user can enjoy the return on investment in 5.6-6.8 years.  Moreover the state had 1,200 Blackouts in the past decade.

Many users prefer cash purchase pay for solar, which delivers a long-term value to the customers. The users can opt for different financing options to afford installations, including solar leases, PPAs, and solar loans.  

What solar panels should I install in Alabama?

The user can customize their solar panels according to their needs and demands. They can choose the batteries and aesthetic of the installation. The customizability increases the importance of understanding the various factors that can impact the solar panel’s performance. The solar panel with warranties and premium performance is more expensive. On the other hand, an in-depth analysis is required if high-efficiency solar panels and warranties can fit your needs. 

How much energy can users generate in Alabama?

Your solar panel performance depends on the quality and quantity of sunlight directly hitting your solar panel. Alabama isn’t one of the sunniest states in the U.S. On average, Alabama has 213 sunny days annually. The state is known for its rain, sleet, hail that falls to the ground, and snow. The other factors which can have an impact on the Alabama solar panel system include the following: 

  • Shading 
  • Panel orientation 
  • Panel angle 
Alabama Weather Highlights

Summer High

The July high is around 91 degrees

Winter Low

The January low is 33


Averages 56 inches of rain a year


Averages 1 inches of snow a year

Rebates and incentives

The federal Investment Tax Credit has been one of the most impactful and reliable incentives for solar across the U.S. the user can deduct 26% of the total system cost from his/her federal taxes. This good incentive lasts until the end of 2022, and from 2023 the tax credit amount steps will decrease to 22%. The federal ITC is eliminated for residential solar installations after 2023, but commercial solar energy system owners can still deduct 10% of a retail solar system cost from their taxes beyond 2023. Apart from the federal ITC, Alabama offer additional incentives for going solar, including the following: 

Federal Solar Investment Tax Credit

26% federal solar tax credit is available for home solar systems installed by December 31, 2022

Residential Renewable Energy Tax Credit

Varies depending on market value

Sales and Use Tax Exemption

Varies depending on market value

Property Tax Exemption

Varies depending on market value

Tennessee Valley Authority – Green Power Providers


Net Metering

Varies depending on market value


If you are living in Alabama, it is the right time to get solar. You can harness solar energy if the solar panels are getting enough sunlight. Moreover, the panels are placed in a direction where PVs can receive sunlight quickly and continuously. The number of hours the sun shines in the region is also critical. Furthermore, the state is going the extra mile to offer attractions and incentives to promote solar energy. If you want to go solar in Alabama, wait no more. We, with our team of skilled experts, can make the process easy and convenient. Wait no more, and lets us serve you with excellence.