Questions to ask yourself before going solar
For a lot of homeowners, the biggest considerations are upfront costs and long-term savings. Whether or not solar panels are really worth it also depends on the condition of your roof and how long you plan to stay in your house.
1. How much will it cost upfront?
A typical residential solar panel installation in Alabama costs$16,994. System size is a major solar cost factor.
A typical Alabama household needs a 5.8 kW system to power their house. You might need a bigger or smaller one. On the high end, Nathan in Jacksonville told us his system cost $47,000.
That’s about as expensive as a car. And like a car, you don’t necessarily have to pay for solar all at once. Many homeowners finance a system with a solar loan or lease panels with little money down.
Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house: It helps you compare the value of solar energy systems in different sizes. In Alabama, the average cost per watt is $2.93.
Solar panel costs by system size in Alabama
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $14,672 | $17,606 | $20,540 | $23,474 | $26,409 | $29,343 |
Consider battery storage
The table above does not include the cost of a solar battery is the price, which can add $7,000 to $18,000 to your total system costs.
A solar battery lets you store extra energy to use at night or during an outage. It may be worth considering if electricity rates are rising, and battery storage is practically essential if you want to go off-grid.
2. How much will I save over time?
Over 25 years, Alabama residents with solar panels can save an estimated $48,933 on total utility costs. That projected amount could fluctuate based on future electricity demand.
Electricity bills are expensive in Alabama. The recent rate freeze offers some short-term relief, but it won’t last forever. Installing solar panels now could help protect you from future rate hikes, which seem inevitable.
What to know about net metering in Alabama
Alabama does not have statewide net metering , so compensation for extra solar power depends on your utility.
Alabama Power customers can sell excess solar electricity back to the utility. In 2026, rates generally range from about 3.5 to 5.5 cents per kWh, depending on the time and rate plan (much less than the retail price of electricity).
Solar can still make sense if your system is sized around your own electricity use rather than producing lots of extra power to sell back to the grid.
3. Is my house a good candidate for solar panels?
Going solar can be worth it for many homeowners, as long as their house is a good candidate for panel installation. Here’s what to think about before you commit:
- What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, repair your roof and reinstall them.
- How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Alabama averages 3.5 to 4 peak sun hours each day. However, lots of shading, like tall trees above your roof, will make your system less effective.
- What is the size and angle of my roof? Alabama (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
4. How long will I stay in my house?
It takes years for electric bill savings to offset the initial cost — about 13.9 years on average in Alabama. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.
Solar panels last 25 to 30 years.
Solar panels might add 4.1% to your home’s value, but don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.
For instance, let’s say you spend $25,000 installing solar panels on a $400,000 house. It might sell for $16,400 more in a few years. But, you miss out on $48,933 in total avoided utility costs over 25 years.
5. Am I eligible for any financial incentives?
The federal solar tax credit is gone, and Alabama has few local incentives to help residents embrace renewable energy.
Alabama does offer a property tax abatement for qualifying renewable energy systems, but it isn’t automatic. Local governments must approve the exemption, which can cover 100% of eligible noneducational property taxes. Applications are currently available through July 2028.
» LEARN MORE: Solar incentives in Alabama
What to know about Alabama Power's Clean Energy Select
The Clean Energy Select program lets Alabama Power customers support renewable energy without installing solar panels. Instead of generating your own power, you pay extra on your monthly bill to purchase Renewable Energy Certificates (RECs).
RECs represent renewable electricity generated elsewhere, including solar farms in Alabama and wind farms in Kansas and Oklahoma. They let you claim that some or all of your electricity use is matched with renewable energy.
Clean Energy Select is best viewed as a green energy subscription, not a money-saving program. It supports renewable energy, but it won’t lower your electricity use or protect you from future rate increases.
Clean Energy Select vs. rooftop solar
Clean Energy Select is nice if you want to support renewables but can’t install solar. Rooftop solar, even with limited incentives in Alabama, is about using less utility power altogether, which is why it can still make financial sense for the right homeowner.
| Clean Energy Select | Rooftop solar panels | |
|---|---|---|
| Requires installation? | ✘ | ✔ |
| Upfront cost | None | Moderate to high* |
| Monthly electric bill impact | Slightly higher | Usually lower |
| Reduces electricity usage from the grid | ✘ | ✔ |
| Provides backup power during outages | ✘ | Only with storage batteries |
| Improves energy independence | ✘ | ✔ |
| Best for | Renters, shaded roofs, values-driven customers | Homeowners focused on long-term savings |
Pros and cons of solar panels in Alabama
It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely pay less than you would for traditional utility bills.
Pros
- Long-term savings
- Better for the environment
- Low maintenance costs
- May increase home resale value
Cons
- Potential upfront costs
- Seasonal production variations
- Potential roof leaks
Compare solar companies in Alabama
We’ve heard from several solar customers in Alabama. In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support. Compare our picks for Alabama’s top solar companies to learn more.
| Company | Customer rating | Pro install | Year founded | |
|---|---|---|---|---|
 Remote Power | Learn More | No rating |  | 1999 |
 Wolf Solar Electric | Learn More | No rating | | 2006 |
 ShopSolar | Learn More | 4.5 |  | 2018 |
FAQ
What are the benefits of solar panels in Alabama?
Some people go solar for long-term savings. For others, it’s more about the environmental benefits or gaining more energy independence. It’s really just a nice perk that solar panels can increase your home’s value.
- Cheaper energy bills: The average homeowner in Alabama uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
- Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
- Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even bigger boosts.
What are the drawbacks of solar panels in Alabama?
One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.
- Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in Alabama. That way, you can store energy at home instead of tapping into the local grid when you need to.
- Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
- Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy.
How can I pay for solar panels?
It’s great if you can pay for the whole thing upfront. Of course, that’s when loans, leases and other agreements come into play. The good news is that loans, leases and other agreements make it easy to go solar with minimum upfront costs.
- Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
- Leases: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them. Leasing can be good if you have limited savings. Solar lease agreements typically last 20 to 25 years.
» COMPARE: Best solar companies in Alabama
How long does it take to install solar panels in Alabama?
Installation times depend on a range of factors, especially seasonality and supply chain issues. The actual installation might take only a day, but it takes time to design, plan and activate the system.
Bottom line: Is going solar in Alabama worth it for you?
Given rising energy costs in Alabama and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway. Solar panels essentially generate free electricity once the initial installation costs are paid.
Anecdotally, Carrie in Enterprise saved for a while to avoid financing. “We just bought straight cash because we don't like payments. It was expensive but so far we enjoy it and for the money it is a good value because we use it often so can't complain about that,” Carrie wrote in a review on ConsumerAffairs.com.
Solar costs vs. savings: Alabama and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Alabama | $17,606 | $29,343 | 5.8 kW | $2.93 | $48,933 |
| Florida | $13,178 | $21,964 | 14.4 kW | $2.20 | $51,910 |
| Georgia | $14,690 | $24,484 | 6.3 kW | $2.45 | $23,339 |
| Mississippi | $16,011 | $26,685 | 5.2 kW | $2.67 | $15,211 |
| Tennessee | $18,277 | $30,462 | 6.7 kW | $3.05 | $2,846 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
CleanTechnica, “Alabama Power Approve Rate Freeze, Solar Power for Data Center.” Accessed. Sept. 2, 2026.
Energy Alabama, “A Consumer’s Guide to Going Solar in Alabama.” Accessed Sept. 2, 2026.
Alabama Power, "Rate PAE Purchase of Alternative Energy." Accessed Sept. 2, 2026.
DSIRE, “Local Option - Property Tax Exemption for Renewable Energy Facilities.” Accessed Sept. 2, 2026.
