Solar Panels in Alabama: Cost, Companies & Installation Tips

Imagine a year with 213 sunny days in Alabama. That’s higher compared with 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 $10,878.  That’s after deducting the federal tax credit of 26%.

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.

An 11.5-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:

System Size Original Price Reduced Price

(with tax credit)

11 kilowatts $26,950 $19,943 $7,007
12 kilowatts $29,400 $21,756 $7,644
13 kilowatts $31,850 $23,569 $8,281
14 kilowatts $34,300 $25,382 $8,918
15 kilowatts $36,750 $27,195 $9,555

The cost of installation depends on the size of a solar power system. You can buy solar panels in larger quantities at lower prices per watt. However, they will still cost high because they contain more individual panels.

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

solar panel installation in Alabama

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


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

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

Have you heard of the Alabama solar tax credit? That doesn’t exist. It’s a federal tax credit. Unfortunately, solar tax credits are not available in Alabama.  

The tax credit is claimed on taxes the year following installation. It is currently worth 26% of the cost of the solar panel system.


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 provides rebates. If you place a solar PV system, TVA will reward you with $1,000.

Top 7 Local Solar Companies in Alabama

1. Vulcan Solar Power, LLC

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.

Address: 3433 Lorna Ln, Birmingham, AL 35216, United States

Phone: +1 205-679-8666


2. Go Solar Power

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.

Address: 420 N 20th St S #94, Birmingham, AL 35203, United States

Phone: +1 800-530-9597


3. EnPower Solutions

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.

Address: 232 Oxmoor Cir Suite 1002, Birmingham, AL 35209, United States

Phone: +1 205-201-0292


4. Design 1 Solar Group Birmingham

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.

Address: 1430 Gadsden Hwy Ste 116, Birmingham, AL 35235, United States

Phone: +1 844-765-2755


5. Solar Technology Alabama

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.

Address: 1206 Eva Rd, Eva, AL 35621, United States

Phone: +1 256-482-2063


6. Eagle Solar & Light 

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?

Address: 4005 2nd Ave S, Birmingham, AL 35222, United States

Phone: +1 800-982-0808


7. Southern Solar Systems, Inc. 

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.  

Address: 11807 Memorial Pkwy SW, Huntsville, AL 35803, United States

Phone: +1 256-883-9848


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 is lowered on days when it rains or clouds. But the sun shines for the majority of the year. Therefore, it’s worth it to invest in solar panels. The rain will help maintain your solar equipment clean of dirt and grime.

Peak Hours

The average peak hours for solar generation in Alabama is 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.


Hurray if you live in southern Alabama! 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.

Leave a Comment