Ballpark Lab
Alabama solar estimate

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 $0.16/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 10,976 kWh a year. Sizing a cash-purchase system to cover 100% of that:

System size
8.0 kW
Panels
20
Annual offset
102%
Gross cost
$22,100
Federal credit (25D)
$0
Expired 12/31/2025 — $0
State incentive
$0
Net cost
$22,100
Payback
10.4 yr
25-year savings
$44,791

Last updated June 30, 2026

Alabama solar numbers

Installed price
$2.45 / watt
Electricity price
$0.16 / kWh
Peak sun hours
4.8 hrs/day
State incentive
0%
Net-metering value
100% of retail

$/W: industry pricing surveys · electricity: U.S. EIA, 12-month average through April 2026 · sun hours: NREL.

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.

Tell us about your home

Average monthly electric bill$210
Estimated system cost
$26,048$33,832
11.2 kW28 panels
Low $26kMost likely ~$29,940High $34k
Federal tax credit
— expired Dec 2025, we won't pretend otherwise
$0
State & utility incentives
$0
Est. annual savings
$2,574
Payback period
~10.1 yr
Net cost
$26k–$34k
25-year net savings
+$63,708
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Monthly shape modeled with NREL PVWatts® v8 (NSRDB 2020 TMY) — updated July 18, 2026.

Electricity 16.4¢/kWh — U.S. EIA, 12-month average through April 2026.

iA ballpark estimate for planning — not a final quote.

Data: U.S. EIA · OpenEI URDB · Google Solar · NREL PVWatts · DSIRE · IRS · ENERGY STAR · industry surveys see all sources

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