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Solar Panels in Alabama: Cost, Savings & Payback (2026)

Enter your own bill below — the state's 2026 electricity rate, sun hours and installed cost are already filled in.

Typical $150/mo household in Alabama

System size

6.9 kW

estimated

Installed cost

$18,663

at $2.70/W

Year-one savings

$1,800

at 17.2¢/kWh

Payback

10.4 yrs

$46,963 net over 25 yrs

1What's your average monthly electric bill?

2Your state

3Tell us about your roof

Solar in Alabama: the three numbers that decide it

Sun hours. Alabama averages 5.2 peak sun hours a day (NREL), rank 14 of 51. After typical system losses that is about 1,518 kWh per installed kilowatt per year.

Electricity price. Residential power costs about 17.2¢/kWh (EIA, 2026), rank 21 of 51 — the higher the rate, the more each solar kilowatt-hour is worth.

Installed cost. Around $2.70 per watt before incentives (EnergySage marketplace data, 2026). With no federal credit for 2026 installs, this is the price you actually pay for an owned system.

Put together, a household with a $150 monthly bill would size a ~6.9 kW array, pay about $18,663, save roughly $1,800 in the first year and reach payback in about 10.4 yrs. Use the calculator above with your own bill.

States with similar sun hours

StateSun h/dayRate$/WPayback @ $150/mo
Alabama5.217.2¢/kWh$2.7010.4 yrs
Georgia5.215.0¢/kWh$2.7011.8 yrs
Idaho5.213.0¢/kWh$2.8014.2 yrs
Louisiana5.214.2¢/kWh$2.7012.6 yrs
Mississippi5.316.3¢/kWh$2.7010.8 yrs

State figures are 2026 averages verified 2026-09-02 (EIA / NREL / EnergySage). Your utility rate, roof and installer quote will differ — see thefull state table and the main calculator.

States with similar sun hours

Related guides

Frequently asked questions

How much do solar panels cost in Alabama?
Installed cost in Alabama averages about $2.70 per watt before incentives (2026). A system sized for a $150/mo bill — roughly 6.9 kW — comes to about $18,663. Get quotes from several licensed installers; local pricing and equipment choices move the figure.
Is solar worth it in Alabama?
For a $150/mo bill, the estimate is $1,800 saved in year one and $46,963 net over 25 years after paying $18,663 for the system, with payback in about 10.4 yrs. Higher bills and good roof orientation shorten payback; shading and low net-metering export rates lengthen it.
Is there a federal solar tax credit in Alabama for 2026?
No. The 30% federal residential solar credit (IRC §25D) was repealed for costs paid after December 31, 2025, and that applies in every state. State and utility incentives in Alabama are not included in this estimate and can still improve the payback — check the state energy office.
How many sun hours does Alabama get?
About 5.2 peak sun hours per day on average (NREL data), ranking 14 of 51 states and DC. Each installed kilowatt therefore produces roughly 1,518 kWh a year after typical system losses.
Why does the electricity rate matter?
Alabama's residential rate is about 17.2¢/kWh (EIA, 2026), ranking 21 of 51. Savings scale directly with the rate: every kWh your panels produce replaces a kWh you would have bought at that price.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.