Is solar worth it in Alabama?

With an average payback period of 11 years and 25-year savings of $30,025, solar panels in Alabama are a solid investment.

How much do solar panels cost in Alabama?

The average cost of a 6kW residential solar system in Alabama is $13,200 before incentives and tax credits.

How much can I save with solar panels in Alabama?

Homeowners in Alabama save an average of $1,201 per year with solar panels, totaling approximately $30,025 over 25 years.

Solar Panel ROI in Alabama

Last updated April 14, 2026 · Source: NREL PVWatts

Is solar worth it in AL? Here's what the data says.

2.3x ROI Score

11 yrs Payback Period

$1,201/yr Annual Savings

$30,025 25-Year Savings

Your savings estimate

$ /mo bill

Annual savings $1,201

Payback 11 yrs

25-yr savings $30,025

25-Year ROI Timeline

With a 11-year payback, your system spends 14 years in profit after breaking even.

Payback (11 yrs)

Profit (14 yrs)

Year 0 Year 6 Year 13 Year 19 Year 25

System Cost $13,200

25-Year Savings $30,025

Net Profit $16,825

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Solar Calculator for Alabama

Adjust the values below to see your personalized solar ROI estimate.

System Size

System Cost

Electricity Rate

$ /kWh

Solar Irradiance

5.38 kWh/m²/day

Based on NREL data for Alabama

ROI Score 2.3x

Annual Production 8,831 kWh

Annual Savings $1,201

Payback Period 11 years

25-Year Savings $30,025

System Cost $13,200

Alabama vs National Average

Solar Irradiance 5.38 kWh/m²/day

+5% vs national avg

Payback Period 11 years Near average

Electricity Rate $0.136 /kWh Below avg

How We Calculated This

Our solar ROI calculations use data from the National Renewable Energy Laboratory (NREL) PVWatts API, which models solar energy production based on location-specific solar irradiance, weather patterns, and panel tilt angles. We assume a standard 6kW residential system with south-facing panels at optimal tilt.

Electricity rates are sourced from the U.S. Energy Information Administration (EIA). Annual savings are calculated by multiplying estimated production by the local electricity rate. The ROI score represents total 25-year savings divided by system cost.

These estimates do not include the federal 30% ITC tax credit, state incentives, SRECs, or utility rebates, which can significantly reduce the effective payback period.

Solar ROI by Zip Code in Alabama

Explore solar data for specific zip codes in Alabama. Click any zip code for a full local breakdown.

35201 Birmingham 2.4x 10.4yr 35208 Birmingham 2.4x 10.4yr 35215 Birmingham 2.4x 10.5yr 35233 Birmingham 2.4x 10.4yr 35801 Huntsville 2.4x 10.6yr 36101 Montgomery 2.4x 10.3yr View all zip codes →

Compare with Nearby States

Mississippi 2.0x

12.6 yr payback · $1,034/yr

Tennessee 1.8x

14.2 yr payback · $945/yr

Georgia 2.1x

12.1 yr payback · $1,114/yr

Florida 2.2x

11.2 yr payback · $1,182/yr

Solar Outlook for Alabama

Alabama's solar irradiance of 5.38 kWh/m²/day is 8.5% above the national average. With electricity at $0.136/kWh, the 11-year payback is moderate — though incentives and tax credits can significantly shorten it.

Solar Equipment Worth Considering

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