Alabama Solar Incentives & Tax Credits
Every solar incentive available to Alabama homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $22,805 system, that's a $6,841 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
No State Credit
Alabama State Incentive
Alabama does not offer a statewide solar tax credit.
While Alabama does not offer a statewide solar tax credit, many utilities offer their own rebate programs. Check with your local utility for current offers.
Net Metering in Alabama
Alabama has Avoided Cost net metering. Your top utility, Alabama Power, credits you for excess solar power fed to the grid.
Policy Type
Avoided Cost
Electricity Rate
$0.132/kWh
Top Utility
Alabama Power
Utility Net Metering Policies in Alabama
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Alabama Power | $0.132 | Avoided Cost | 25 kW limit |
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