Solar Guide for Alabama Power Customers

If you're a Alabama Power customer considering solar energy, you're making a smart financial decision. With residential electricity rates averaging 16.1 cents per kWh, solar panels can dramatically reduce or even eliminate your monthly electric bill. The typical Alabama Power customer spends approximately $129 per month on electricity — money that could be working for you instead of going to the utility.

Central and Southern Alabama

Alabama Power has a limited net metering policy. While net metering isn't currently offered, solar customers still save substantially by reducing the amount of electricity they purchase from the grid. By consuming your solar energy directly as it's produced and potentially adding battery storage, you can minimize your reliance on grid electricity at 16.1¢/kWh.

An 8kW solar system for a Alabama Power customer costs approximately $22,240 before the 30% federal Investment Tax Credit. After the ITC, your net cost drops to about $15,568. This system produces enough clean energy to save you approximately $1,878 per year, resulting in a payback period of roughly 7 years.

After your system pays for itself, you'll enjoy 12+ years of dramatically reduced electricity costs. Over a 25-year period, total savings for Alabama Power customers are estimated at $46,950 — and that's without accounting for the likely 2-3% annual increase in electricity rates that would make your savings even greater.