Solar Panel Savings in Alabama
Alabama gets 4.8 peak sun hours per day with electricity at 14.5¢/kWh. See how much you can save with solar panels.
Solar Panel Cost & Savings by System Size in Alabama
| System Size | Gross Cost | After Credits | Payback | 25-Year Savings | Annual kWh |
|---|---|---|---|---|---|
| 6 kW | $16,200 | $11,340 | 6.3 yrs | $45,999 | 10,512 |
| 8 kW | $21,600 | $15,120 | 7.6 yrs | $50,507 | 14,016 |
| 10 kW | $27,000 | $18,900 | 9.3 yrs | $46,727 | 17,520 |
| 12 kW | $32,400 | $22,680 | 10.8 yrs | $42,947 | 21,024 |
Includes 30% federal ITC + 0% Alabama state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.
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Is Solar Worth It in Alabama?
Alabama averages 4.8 peak sun hours per day, which means an 8 kW solar system would produce approximately 14,016 kWh per year. At the state's average electricity rate of 14.5¢/kWh, that translates to significant annual savings on your electric bill.
With the federal 30% Investment Tax Credit and Alabama's 0% state incentive, an 8 kW system costing $21,600 drops to just $15,120 after credits — with a payback period of approximately 7.6 years.
Over 25 years, homeowners in Alabama can expect to save $50,507 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of solid sun exposure and federal incentives makes solar a very strong investment in Alabama.