Cost & Savings Breakdown
Based on $150/month electric bill in Birmingham
System Size
7 kW
Annual Production
9,865 kWh
Gross System Cost
$20,763
Federal Tax Credit (30%)
-$6,229
State Incentive
None
Net Cost
$14,534
Monthly Savings
$122
CO₂ Offset/yr
9,076 lbs
25-Year Savings Projection
Utility & Net Metering
Local UtilityAlabama Power
Net Metering PolicyAvoided Cost
Compensation RateAvoided cost rate
Capacity Limit25 kW limit
Electricity Rate$0.148/kWh
Peak Sun Hours4.8 hrs/day
Available Incentives
30%
Federal ITC — Deduct 30% of your system cost from federal taxes. Available through 2032.
Common Questions
How much does solar cost in Birmingham?
Solar in Birmingham, Alabama costs approximately $20,763 for a 7 kW system. After the 30% federal tax credit, your net cost is about $14,534.
What is the solar payback period in Birmingham?
The estimated payback period for solar in Birmingham is 10 years, based on a $150/month electric bill and local sun hours of 4.8 hrs/day.
Does Alabama Power offer net metering?
Alabama Power offers Avoided Cost net metering. Avoided cost rate.