Solar Panel Cost in Alabama (2026)
Installed solar in Alabama runs about $2.45 per watt — roughly 5% below the national average of $2.58/W. With the federal residential tax credit (25D) gone as of 2026, payback here rests on a $0.15/kWh power price and 4.8 daily peak sun hours.
Worked example: a typical $150/month home in Alabama
A $150/month electric bill in Alabama works out to about 12,000 kWh a year. Sizing a cash-purchase system to cover 100% of that:
System size
8.8 kW
Panels
22
Annual offset
103%
Gross cost
$24,060
Federal credit (25D)
$0
Expired 12/31/2025 — $0
State incentive
$0
Net cost
$24,060
Payback
11.2 yr
25-year savings
$43,239
Last updated June 30, 2026
Alabama solar numbers
- Installed price
- $2.45 / watt
- Electricity price
- $0.15 / kWh
- Peak sun hours
- 4.8 hrs/day
- State incentive
- 0%
- Net-metering value
- 100% of retail
Local context: Alabama Power's solar fees and limited net metering pull paybacks longer than its strong sun would suggest.
Estimate your own Alabama system
Adjust the bill, ownership, and battery options below — it's pre-set to Alabama's pricing and sun hours.
Estimated system cost
$27,753–$36,047
12.0 kW30 panels
Low $28kMost likely ~$31,900High $36k
Federal tax credit
— expired Dec 2025, we won't pretend otherwise
$0
State & utility incentives
$0
Est. annual savings
$2,523
Payback period
~10.9 yr
Net cost
$28k–$36k
25-year net savings
+$59,871
iA ballpark estimate for planning — not a final quote.
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