Alabama Tax Credits

While Alabama currently does not offer any tax credits at the state level, you can still benefit from the federal solar tax credit, also known as the solar investment tax credit (ITC) . The federal solar tax credit reduces the cost of solar installation by 30% in 2025 and has been extended by the Inflation Reduction Act until 2032. For homeowners looking to save on solar, it’s important to take advantage of this solar program before it is phased out completely.

Other than South Carolina, Alabama resident spend more on their electricity bill than any other state. This is large part due to heavy air conditioning use in the summer and heavy use of heating in the winter. The average Alabama homeowners spends $1,747 on their yearly electricity bill. With an average of 213 sunny day per year in Alabama, why not use the power of the sun to have your electricity bill pay for itself?

Alabama Renewable Portfolio Standards

Alabama currently has no Renewable Portfolio Standards (RPS). Renewable Portfolio Standards are regulations that demand utilities escalate their renewable energy production. Utilities are required to meet these regulations by generating their own renewable energy or purchasing it from customers. If the standards are not met then utilities can face large fees. To avoid paying these large fees, utilities in states that have good renewable portfolio standards offer solar incentives to homeowners.

Alabama Net Metering

Net Metering is the process where a homeowner’s residential solar system is connected to a public utility power grid. After the system is connected to the grid, any excess power that is generated that is not used by the homeowner is transferred to the grid. The utility company will then deduct the amount of energy from their current bill or apply a credit to a future bill for the electricity added to the grid. Alabama currently does not have any net metering laws.

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