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 26% in 2020. By 2021 the tax credit will drop to 22% and is currently scheduled to be phased out by the end of 2021. 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.
Solar Energy is Affordable
Recent Growth in the Solar industry has driven up front costs down by over 25%. Federal tax credits of 26% are available through 2020.
Solar Energy is Clean Energy
It reduces power plant emissions of pollutants and greenhouse gases that contribute to global warming and poor air quality.
Solar Energy is Renewable
It’s helping to conserve our finite fossil fuels for future generations.
Solar Energy is Independent
Empowering you to generate your own electricity which reduces the possibility of blackouts and the need for more power plants.
Solar Energy is Financially Smart
Generating substantial cost savings and an attractive long-term rate of return for your money.
Hurricane and Power Back-up
Generating power after a loss of power company’s supply.