Cost of Solar Panels in Alabama: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Alabama:

  • Average Cost Per Watt: $2.45
  • Cost of Average System: $20,850*
  • Cost of Energy Without Solar: $56,765
  • Payback Period: 11 Years**
  • Lifetime Savings of Going Solar: $28,590

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/17/2022

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Find Cost Savings on Solar in Alabama

As a homeowner in Alabama, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

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Cost of Solar Panels in Alabama

tips for choosing solar system sizeSolar panel systems in Alabama typically cost around $2.45 per watt, which is quite a bit cheaper than the national average of $2.66. However, most Alabama solar customers need an 11.5-kW system to offset the average electricity bill of $144 per month. This is one of the largest monthly bills in the country, which both makes solar more expensive to install and more worth it for long-term savings.1 

Even with the lower cost of solar equipment, Alabama residents will pay more for their systems than most. The average total cost for a home solar project is $28,175 before the federal tax credit or $20,850 after the credit is applied.

Solar Panel System Installation Cost in Alabama

The most significant factor when estimating your cost of going solar is the size of the system you need. Every additional kilowatt required to offset electricity costs will bump up your total by an estimated $2,450. The average home in AL requires an 11.5-kilowatt system, but the table below provides typical pricing for other standard system sizes in the area.

Size of Solar Panel System Alabama Solar Panel Cost Cost After Federal Tax Credit
9 kW $22,050 $16,317
10 kW $24,500 $18,130
11 kW $26,950 $19,943
12 kW $29,400 $21,756
13 kW $31,850 $23,569
14 kW $34,300 $25,382
15 kW $36,750 $27,195

Want to see a list of the top solar installers in Alabama that can provide you with an affordable, high-efficiency system? Click here.

What Determines the Cost of Solar Panels in Alabama?

System size is the most significant factor to consider when estimating the cost of going solar, but there are other cost factors at play that can influence your total. We’ll discuss the other things you’ll need to consider below.

Solar Equipment

solar panels in an arraySolar equipment might all look similar to the untrained eye, but different brands provide wildly different energy efficiency and value. Some brands and pieces of equipment produce and store more energy and can help you save money on electric bills in the long run, but they usually cost more upfront. The most efficient solar panels — like Maxeon/SunPower panels — fall into this category of high-cost and high-value, as do Tesla Powerwall batteries.

Many solar installers in Alabama allow you to customize your system beyond brand selection. Some companies just tackle simple systems consisting of solar panels and inverters. Others provide access to add-on products like electric vehicle chargers and solar batteries to provide off-grid power at night or during a blackout. These additional pieces of equipment will, of course, bump up your cost significantly.

Solar Financing

The average cost of going solar in Alabama — $28,175 — is prohibitively expensive for many homeowners. Thankfully, most residents have access to solar financing that reduces upfront costs and makes renewable energy more accessible.

However, financing will increase your total costs due to the interest you’ll pay over the lifespan of the loan. Even low-APR solar loans will end up costing more than a cash purchase in the long run. It’s wise to consult with a solar installation company or loan provider to determine your all-in price before committing to a solar loan.

You can maximize your savings with a solar loan by choosing a low-APR option and making the largest down payment that you can comfortably afford.

Solar Installation Company

Finally, the installation company you choose to handle your solar conversion can have a significant impact on your total.

First, solar companies can upcharge equipment and charge different prices for their labor. That means you could pay more with one company than you would with another installing the exact same equipment.

The equipment provided by an installer will generally determine whether you’ll pay more or less than the average throughout Alabama. For example, a company that only offers high-quality, high-efficiency solar equipment will naturally cost more than a company that keeps prices down by delivering the cheapest solar panels. Companies that include high-efficiency equipment do, however, tend to save you more over time.

Alabama Solar Incentives

Many Alabama homeowners understandably struggle with the idea of paying nearly $30,000 to go solar. Luckily, the federal government and the state government both offer tax incentives and other benefits to homeowners who convert to clean energy. Below are the most appealing incentives for going solar available in Alabama.

Alabama Solar Incentive How it Affects the Cost of Solar Panels in Alabama
Property Tax Exemption Alabama’s Property Tax Exemption for Renewable Energy Facilities ensures that, although the value of your home will rise after installing solar, your property taxes won’t go up with the increased value.
Sales Tax Abatement Alabama’s Sales Tax Abatement for Renewable Energy Facilities allows homeowners to pay less sales tax when purchasing solar equipment.
Net Metering Through net metering programs, homeowners can receive credits from their utility company for any excess power their panels produce. Alabama power companies are not required to provide these programs, but you can check with your utility to see if it offers net metering. Learn More 
Local Solar Rebates & Incentives We recommend checking for any additional incentives. Some solar-friendly cities provide rebates and other ways for homeowners to save money on clean energy. 
Federal Solar Tax Credit The solar investment tax credit (ITC) is applied to any federal income tax you owe and is valued at 26% of your total system cost. In Alabama, where the typical system totals $28,175, that’s a credit of $7,326, bringing the effective total down to $20,850.

Best Solar Panel Brands and Installed Solar System Costs in 2022

Alabama residents will have their fair share of solar equipment brands to choose from when going solar. The table below provides some relative pricing for the best solar panel brands available in the Yellowhammer State. This table should help you figure out which brands are most likely to fit within your budget.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

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People Also Ask 

EcoWatch FAQ: Solar Panel Cost Alabama

At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Alabama residents. Below are some of the questions we see most often, along with our responses.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.