Solar Panels Cost in Alabama: Cost, Companies 2024

Imagine a year with 213 sunny days in Alabama. That’s more compared to the 205-day national average. But why does Alabama lag behind other southern states in solar generation? Is this because of the fees imposed on homes with solar panels? Check out these solar panels in Alabama and determine if they’re right for you.

Local Solar System Installation Costs in Alabama

Are you trying to figure out how much you will need for a home installation? It will cost you around $9,170 to install a 5kW solar system, that’s after deducting the federal tax credit of 30%.

You can take advantage of the credit now while it’s still available. It will only be available for commercial buildings in the years to come.

A 10 kW solar panel system is what you need. This setup can cover the $144 monthly average electric bill.  Installing solar is costly. But it is more valuable in the long run.

The table below reflects the cost for various standard system sizes in Alabama:

Alabama Solar System Costs
System size Avg System Cost
4kW $10,914
5kW $13,100
6kW $15,094
7kW $17,301
8kW $20,110
9kW $22,031
10kW $24,180

The cost of installation depends on the size of a solar power system. You can buy solar panels in larger quantities at a lower price per watt. However, the total cost may still be high due to the increased number of individual panels.

What other factors affect the cost of solar panel installation in Alabama?


Other factors aside from system size make solar installation pricing fluctuate between homes. These include the following:

Quality of Solar Panels

Solar panels aren’t all created equal, right? Some are of higher quality. You’ll get more bang for your buck and save money on your utility bills.

Expect high-quality solar panels to cost higher upfront. But they can help you reduce your electric bills over time. Take monocrystalline solar panels, for instance. They are higher in cost and efficiency than other types.


Do you wish to customize your solar power system?  Lots of companies provide more than simple setups. You’ll surely enjoy having more freedom to decide for your home.

You can find some add-ons like solar batteries. Of course, buying these extra items means a dramatic increase in cost.


The installation company you pick can also impact the final cost of your project. Solar companies have the option to charge different rates for their equipment and labor.

Hiring one installer may end up costing you more than another who installs the same panels. Talk to a local solar expert to get a more exact idea of the cost of your installation.


Fortunately, solar financing is available to many Alabama residents. This loan helps lower upfront costs and increase your access to sustainable energy.

However, you’ll pay interest throughout the loan. Thus, financing will raise your overall expenditures. Better speak with a solar installation firm or loan provider first. It’s also wise to check local solar companies on their current offers.


You have to apply for a solar permit if you plan to install solar panels in your home. Each city may require varying requirements. Speak with a reliable installer about the process of acquiring a permit. They often perform most of the work.

Remember that your city has the authority to charge fees. It’s exciting to put up solar panels. But wait until you complete all the necessary paperwork.

Alabama Solar Incentives, Tax Credits, and Rebates


Local Incentives

Alabama may be rich in sunlight but lacks solar power policy and regulations. Therefore, there are no local incentives for solar panel installation.

Guess what? There are only three US states without a net metering policy. One is Alabama. So don’t expect to get compensated for surplus electricity produced by your solar system.

Tax Credits


There is no specific “Alabama solar tax credit.” What exists is a federal tax credit. The tax credit can be claimed on your taxes in the year following the installation. It is currently worth 30% of the cost of the solar panel system.

Alabama Solar System Costs (After 30% tax credit)
System size  Avg System Cost
4kW $7,490
5kW $8,984.50
6kW $10,290
7kW $11,872.70
8kW $13,664
9kW $14,981.40
10kW $16,457


Alabama doesn’t have Renewable Portfolio Standards (RPS). Hence, finding rebates is unlikely. RPS requires raising the use of renewable resources by a specific date. In states with strong RPS, utilities provide homeowners with solar incentives.

Electric utilities are profit-driven enterprises. In Alabama, TVA is the only company that offers rebates. If you install a solar PV system, TVA will provide a $1,000 rebate.

Top 7 Local Solar Companies in Alabama

1. Vulcan Solar Power, LLC

  • Address: 3433 Lorna Ln, Birmingham, AL 35216, United States
  • Phone: +1 205-679-8666

Vulcan Solar Power is a licensed general contractor. Go to them if you want the entire installation process covered. This includes permits, design, and interconnection. You’ll have fewer worries!

VSP offers complete solar panel systems for companies and homeowners. They also install for charity organizations. You’ll love their affordable solar systems with enormous financial returns.

2. Go Solar Power

  • Address: 420 N 20th St S #94, Birmingham, AL 35203, United States
  • Phone: +1 800-530-9597

You’re in for a top-notch installation experience if you choose Go Solar. The team members are very prompt and professional. Do you hate pushy salespeople? They’re not like those with invasive door-to-door techniques.

Go Solar fulfills its commitments and keeps customers updated along the way.  Plus, its customized designs and services are cost-effective.

3. EnPower Solutions

  • Address: 232 Oxmoor Cir Suite 1002, Birmingham, AL 35209, United States
  • Phone: +1 205-201-0292

EnPower Solutions claims to differ from the majority of solar companies. It doesn’t create and sell you a solar energy system that you have to pay for and maintain.

EnPower designs and builds one that will suit your needs. All you have to do is purchase renewable energy at a discounted rate to save money.

4. Design 1 Solar Group Birmingham

  • Address: 1430 Gadsden Hwy Ste 116, Birmingham, AL 35235, United States
  • Phone: +1 844-765-2755

Design 1 is a prominent solar installer of stylish, durable panels. The company has already been in business for over 50 years. It continues to look for ways to better its clients’ experiences.

One solar energy expert will conduct a consultation after a home assessment. You will receive implementation ideas and strategies that best suit your needs.

5. Solar Technology Alabama

  • Address: 1206 Eva Rd, Eva, AL 35621, United States
  • Phone: +1 256-482-2063

Solar Tech opened for business in 2008. It has become a big name in Alabama when it comes to off-grid solar systems. Yet, it has also set up some of the state’s most extensive grid-direct solar power systems.

The company is a full-service solar power installer. It helps residents access clean and cheap solar energy through its custom systems.

6. Eagle Solar & Light

  • Address: 4005 2nd Ave S, Birmingham, AL 35222, United States
  • Phone: +1 800-982-0808

The Eagle Solar & Light was established in 2016. Its goal was to offer the same access to solar energy available in other regions in the US. The company holds qualifications and accolades from recognized boards.

ESL is also a dedicated community partner. The company is even willing to conduct a solar presentation for a primary science class. Isn’t that amazing?

7. Southern Solar Systems, Inc.

  • Address: 11807 Memorial Pkwy SW, Huntsville, AL 35803, United States
  • Phone: +1 256-883-9848

Southern Solar opened in 2007. It is reputed as one with the knowledge and experience to meet all your energy demands. It specializes in solar photovoltaics for commercial and residential buildings.

The company will take care of every facet of your solar project. Expect them to collaborate with you from design to installation.

What to Look for When Installing Solar Panels in Alabama

Local Climate

Are you concerned about tornadoes and other harsh weather conditions? Having an excellent physical protection warranty is usually all you need to feel secure.

The efficiency of your solar panels decreases on cloudy or rainy days. But the sun shines for the majority of the year. Therefore, it’s worth it to invest in solar panels. The rain will help keep your solar equipment clean of dirt and grime.

Peak Hours in Alabama

The average peak hours for solar generation in Alabama are 4.23/day with a fixed solar panel. Does that seem low for you? Not to worry! Remember, the sun is always out all year round. Peak solar hours can increase with a tracking mount.

Do you know what’s ideal for solar energy production in the US? A place with at least four hours of peak sunlight each day is already considered a great fit.

Solar Panel Direction and Placement in Alabama

If you live in southern Alabama, you’re in luck! Your area receives a little bit more sunlight than northern regions. Also, rooftops facing south receive greater annual average sunlight.

Your system will work more efficiently if there are no huge obstructions. The problem lies if you have serious shading concerns. Your home will be cooler, but you’ll receive less solar energy.


Are you considering installing solar panels in Alabama? Investment in solar power equipment is a sound one. Figure out whether or not it’s a good fit. Among other things, think about how much energy you actually use. If you’re not sure what you need, consult with a reputable solar panel company for assistance.

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