Solar Panel Cost in Alabama (2023 Local Savings Guide)

In this EcoWatch guide on the cost of solar panels in Alabama, you’ll learn:

  • How solar panel costs in Alabama compare to the U.S. average
  • What affects solar prices for Alabama residents
  • How much you can save by going solar in Alabama 
  • What makes Alabama a good state for solar
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Cost of Solar Panels in Alabama

Solar 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 $19,722 after the credit is applied.

Keep reading to learn more about solar costs and incentives in Alabama. Or, 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.

Badge icon

Eagle Solar & Light

Outstanding Regional Installer

Regional Service

EcoWatch rating

Average cost

Pros

  • NABCEP-certified technicians
  • Offers products from leading manufacturers
  • Locally owned and operated
  • Award-winning company

Cons

  • Relatively young company
  • Limited information available on website
  • Slightly limited service offerings
Badge icon

Creative Solar USA

Solar Veteran

Local Service

EcoWatch rating

Average cost

Pros

  • Representatives are experts on local policies
  • Comprehensive service offerings
  • Many years of experience

Cons

  • No leases or PPAs
  • Limited brands of solar equipment available
Badge icon

SunPower

Best National Provider

Nationwide Service

EcoWatch rating

Average cost

Pros

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage

Cons

  • Expensive
  • Customer service varies by local dealer

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 $15,435
10 kW $24,500 $17,150
11 kW $26,950 $18,865
12 kW $29,400 $20,580
13 kW $31,850 $22,295
14 kW $34,300 $24,010
15 kW $36,750 $25,725

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

See Also: Calculate how much you can save by going solar

What Determines the Cost of Solar Panels in Alabama?

Solar panel systems in Alabama can range quite a lot in price, with most homeowners paying between $16,317 and $27,195 after taking advantage of the federal tax credit. A number of important factors affect your system cost, and it’s challenging to determine what you’ll pay without knowing how these factors apply to your specific needs and property. 

Below we’ll take you through the major factors that determine system cost so you’ll have a better idea of where your total tab might fall.

Solar Equipment

solar panels in an array

Solar equipment is expensive and is usually the biggest determining factor in your all-in system costs. To a large extent, the climate and weather in Alabama dictate what equipment will be appropriate for your home.

Alabama residents experience around 213 sunny days per year, which is just above the national average. Abundant sun means there is no need for high-efficiency, higher-cost panels to offset energy bills, and even tier-two panel brands will typically suffice in AL. 

Overall, this means somewhat lower system costs in AL than in states that get less sun and/or are more northerly.

However, Alabama is located in Dixie Alley (the southeastern U.S. version of Tornado Alley), and the state is prone to tropical cyclones and hurricanes as well as tornadoes. These extreme weather events put the electrical grid at high risk of outages. 

Many Alabama solar customers choose to include solar batteries with their panels, which can eliminate power outages but add thousands of dollars to equipment costs. If you plan on adding batteries to your system, you can expect your total price to bump up significantly.

Solar Financing in Alabama

tips for choosing solar system size

The type of financing you use for your solar panel purchase can also swing your price up or down quite a bit. 

Paying with cash means you’ll pay only equipment and labor costs. Taking out a solar loan means you’ll be incurring interest charges as well as paying for your system. At an average system cost of $19,722 and an interest rate of 5%, you’re looking at an additional $3,900 in interest on top of your system price.

Alabama does offer statewide, government-backed financing solutions to reduce the added cost of financing your panels. It provides Property Assessed Clean Energy (PACE) financing for residential and commercial customers looking to keep interest rates low. 

Unfortunately, low-income households don’t have any dedicated solar financing solutions in Alabama to make solar panels more accessible.

Alabama Solar Installation Company

As you can probably imagine, pricing varies among different solar installers based on equipment costs, labor rates and more. Even if you choose the same equipment and system size from two companies in Alabama, you could be quoted totally different totals.

Some of the most significant price discrepancies between installers are due to the equipment brands offered. For example, if you look at Eagle Solar & Light and SunPower — two of the best solar companies in Alabama — you’ll see they carry different brands. 

Eagle Solar & Light installs brands like REC, which are considerably cheaper than the Maxeon panels that SunPower exclusively installs. These companies will, therefore, differ in price by thousands of dollars, even for a system of the same size.

Given the pricing discrepancies, it’s crucial to compare installers based on value delivered rather than just on cost, as panel quality, longevity, warranty and performance can all vary by brand.

Additional Considerations and Costs in Alabama

Below are some additional considerations for you when thinking of going solar in Alabama. These won’t have much of an impact on your system price, but they can affect your overall experience.

  • Permits: Solar systems in Alabama can’t be installed without the proper building permits. Your solar installer will usually handle the permits, but you should confirm this before signing any agreements for service.
  • Licenses: Alabama requires that all solar installers maintain a valid electrical contractor license. It’s worth checking to ensure your installer is properly licensed for your own safety and your system’s legality.
  • Warranties: Solar warranties are important because they protect your investment and help ensure that your system continues to function as intended. You don’t have to prioritize your brand choice by warranty coverage, but longer and more comprehensive warranties are always a better option.
  • HOAs: Unfortunately, there are no laws in Alabama preventing your homeowners’ association from prohibiting solar panel installations. You should always check with your HOA, if you have one, before signing an agreement with a solar installer.
  • Environmental zoning: The zoning laws in Alabama rarely cause issues for rooftop solar installations, so you shouldn’t run into any problems with zoning.

What Solar Incentives Are Available in Alabama?

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.

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 30% of your total system cost. In Alabama, where the typical system totals $28,175, that’s a credit of $8,453, bringing the effective total down to $19,722.

The Best Solar Panel Brands Available in Alabama

The table below lists some of the top solar panel brands available in Alabama. We’re also including some relative pricing so that you can see how these brands stack up against each other and which ones are likely to suit 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 $$$

Ready to get a quote for your solar panel system? Select one of our top providers below, and we’ll have a reputable solar installer in your area provide a free estimate with no obligation to you.

Read More About Going Solar

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. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

Blog author image
Article author
Karsten is an editor and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.
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Expert reviewer
Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral.

Comparing authorized solar partners

EcoWatch rating
Average cost
Pros
Cons
BBB Rating
Year founded
Service Area
Brands of Solar Equipment Offered
Warranty Coverage
  • 4.5
    • NABCEP-certified technicians
    • Offers products from leading manufacturers
    • Locally owned and operated
    • Award-winning company
    • Relatively young company
    • Limited information available on website
    • Slightly limited service offerings
    A+
    Outstanding Regional Installer

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