Average cost: $19,875 before incentives · $2.65/watt · 5.0 peak sun hours/day
The average cost of a residential solar panel system in Alabama is $2.65 per watt, which translates to approximately $19,875 for a typical 7.5 kW system before any incentives or tax credits are applied.
After factoring in the 30% federal Investment Tax Credit (ITC), the net cost drops to around $13,912. Additional state and local incentives may reduce your cost further.
| Metric | Alabama Value |
|---|---|
| Cost Per Watt | $2.65 |
| Average System Cost (7.5 kW) | $19,875 |
| Cost After Federal Tax Credit | $13,912 |
| Peak Sun Hours/Day | 5.0 |
| Est. Annual Savings | $1,916 |
| Est. Payback Period | 7.3 years |
| Net Metering | Limited |
See how much you can save with solar panels for your home. Compare quotes from top-rated local installers.
Get My Free Quote →Alabama residents can take advantage of the following solar incentives:
The most significant incentive for Alabama homeowners is the federal ITC, which provides a 30% tax credit on the total cost of your solar installation. This credit applies to both the equipment and labor costs.
Learn more about the Federal Solar Tax Credit →
Solar installation costs can vary between cities due to differences in local permitting fees, installer competition, and utility rates. Here are the top cities in Alabama:
With an average of 5.0 peak sun hours per day and an estimated payback period of 7.3 years, solar panels are a strong investment for most Alabama homeowners. After the payback period, you're essentially generating free electricity for the remaining 15-20 years of your panel warranty.
If your monthly electric bill is $100 or more, solar is very likely to save you money over the life of the system. The higher your electric bill, the faster your payback and the greater your lifetime savings.
See how much you can save with solar panels for your home. Compare quotes from top-rated local installers.
Get My Free Quote →Most Alabama homes need between 18-24 solar panels (a 7-9 kW system) to offset their electricity usage. This depends on your monthly energy consumption, roof orientation, and the efficiency of the panels you choose.
Alabama's net metering policy: Limited. Net metering allows you to sell excess solar electricity back to the grid, effectively spinning your meter backwards and reducing your bill. Learn more about net metering →
Solar panels typically last 25-30 years with minimal degradation. Most manufacturers guarantee at least 80% output after 25 years. Read our full lifespan guide →