As of 2012, Alabama had yet to implement many incentives for residential solar power. Despite this, Alabama receives abundant annual sunshine and has a great deal of potential for solar energy systems. In this article, you will find all the information needed to help you decide if solar energy is right for you.
Grid Connected Solar Power Systems In Alabama (2012)
- Residential Systems: N/A
- Non-Residential Solar Power Systems: 0.1 Megawatt
- Utility: 0.5 Megawatt
- Total: 0.6 Megawatt
- Cumulative: 1.1 Megawatt
The state currently ranks in the bottom 10% of the nation's states for total solar power capacity. Homeowners can act as the pioneers of a new energy frontier in Alabama by investing in their own solar energy systems.
Cost of Electricity in Alabama
- Electricity Price: $0.12 per kwh
- Average Electricity Bill: $123.00
- Average Bill after Solar: $87.00
A solar installation in Alabama can significantly reduce utility bills each month. On average, the monthly cost of leasing a solar energy system in Alabama is $0, which means that monthly savings amount to about $36. It takes about 16 years for 5kW of solar energy to pay for itself.
On average, Alabama receives between 4 and 5 Kilowatt of solar radiation per day over an area of 1 square meter (10.76 square feet), which represents a very high amount of solar radiation. Alabama additionally enjoys 211 days of sunshine annually.
State Solar Incentives and Rebate Programs
- State Solar Tax Credit: N/A
- State Solar Rebate: N/A
- Property Tax Exemption: N/A
- Sales Tax Exemption: N/A
While Alabama's solar energy industry currently offers no solar incentives, this actually helps Alabama residents in terms of federal tax incentives. Regarding the Federal Tax Credit – which applies to solar energy systems in the state – the government calculates this incentive based on initial out-of-pocket costs. As a result, less state incentives equate to a larger federal solar tax credit for homeowners.
Additionally, some counties and cities in Alabama offer their own solar incentives. The Tennessee Valley Authority (TVA) offers residents an initial $1,000 rebate after installing a solar power system.
Solar Installers in Indiana
Solar installers can only install solar panels in Alabama if they are formally licensed as electrical contractors. The best way to check if a contractor is licensed in Alabama is to call (334) 269-9990, or verify the license of your solar installer on the state’s website.
Summary: Good Conditions for Solar Power Systems
While the state needs to establish more residential solar incentives, solar energy savings in Alabama still remain comparable to neighboring states. With Alabama's plentiful sunshine each year, installing a solar energy system is a sound investment. To calculate your own costs and savings, please use our Solar Calculator, or contact solar installers in your area.
Solar Energy Fact Sheet: Alabama, © SolarContact.com