Alabama Solar Cheat Sheet
US Power & Solar · October 2026- Residential rate
- 16.4¢/kWh
- Est. monthly bill (900 kWh)
- $148
- 6 kW system output
- 8,928 kWh/yr
- Solar payback (no incentives)
- 12.3 years
- Verdict
- Less attractive
- Price change
- +38% since 2015
Fair pricing & incentives
- Fair installed price: $2.80–$3.30 per watt before incentives. Under $2.80 is a great deal; above $3.90 is likely overpriced.
- Federal tax credit: 30% of the system cost (you must owe enough federal tax to use it).
Utilities & net metering
Alabama Power. Charges a monthly fee for grid-tied solar systems.
Limited — no statewide net metering rule; export credit depends on your utility and is often low.
5 questions to ask your installer
- What is the total price per watt, before and after the 30% federal tax credit?
- Which panel and inverter brands and models will you install, and what are their warranties?
- What production (kWh/year) do you estimate, and what rate increase do your savings assume?
- Are there dealer fees, escalators or prepayment penalties in the loan or lease?
- Who handles permits, utility interconnection, and repairs if something goes wrong?
Data: EIA (rates) and NREL PVWatts (solar output). Estimates only; actual results vary. Utility info is a general guide.