Solar Panels in Alabama Policies, Rebates, and Solar Companies

Alabama has the potential to be a major player in solar energy thanks in part to its 99 days of average sunshine per year. It currently ranks near the bottom among states for installed solar panel capacity, according to the Solar Energy Industries Association. However, large retailers have committed to solar projects and the state’s two large utilities are looking to boost renewable power options for their customers. Read on to learn more about companies that install solar panels in Alabama, the state’s solar policies, and other helpful resources.

Alabama’s Solar
Report Card

Methodology

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To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

• Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
• Electricity Rates from the U.S. Energy Information Administration;
• Renewable Energy Policy from NC Clean Energy Technology Center;
• Interconnection Ease from Freeing The Grid;
• Photovoltaic Potential from the Energy Department

We determined a rank from 1 to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.

Incentives & Rebates, 40%

Electricity Rate, 15%

Renewable Energy Policy, 30%

Interconnection Ease, 5%

Photovoltaic Potential, 10%

Electricity Costs in Alabama

Since 2005, Alabama’s residential electricity costs have steadily increased to its current rate of about $0.12 kWh, sitting just below the national average of $0.13 kWh. Although Alabama hasn’t yet committed to extensive solar panel use, the state uses a variety of other renewable energy sources. Hydroelectric power supplies about 75 percent of Alabama’s renewable electricity and Alabama ranks sixth in the nation using landfill gas and biomass to generate electricity, according to the U.S. Energy Information Administration. Alabama also has large deposits of fossil fuel resources, including coal, crude oil, and natural gas reserves.

Solar Panel Installers & Companies in Alabama

In 2019, there are 50 solar companies in Alabama, providing solar products and services that include installing solar photovoltaic panels and solar hot water systems and manufacturing components needed for solar modules. About 600 people are employed in the industry throughout the state. Alabama homeowners have options in their search for a company to design and install their solar systems. Here are some of the installation companies currently working in Alabama’s solar industry:

Resources for Alabama Homeowners & Businesses