Solar Panels Cost $16k-$27k in Alabama | March, 2025

Electricity Costs in Alabama & What that Means for Your Solar Panel Pricing

Each month, an average Alabama energy consumer uses 1,142 kWh, resulting in an average bill of $172.78. Compact residences, including duplexes and condos, are also included in the numbers noted in the prior sentence.

For March 2025, Alabama's average electricity rate is 15.12¢ per kWh.

If you’re an average electricity consumer in Alabama you must have 10 kW or more sized system to satisfy your full electricity needs. Right now, 10 kW solar panel installation is priced at $39,700, but with a 30% tax credit, it is reduced to $27,790

Are solar panels worth it in Alabama?

If you plan to live in your home beyond the time it takes to recoup your solar investment, adding solar panels in Alabama is an excellent decision. A 5 kW solar system in Alabama could potentially save you $27,571.60 over the course of 20 years, with the break even point averaging at 7 years.

The cost of not having solar panels in Alabama

Besides missing out on the previously mentioned savings, not having solar panels or a separate backup energy source makes you fully reliant on your electric utility for electricity. Relying entirely on your utility isn't always ideal, as several recent news reports have highlighted.

Lately, utilities in Alabama have had an average of 1.72 outages per customer annually. On average, the length of an outage is 206.39 minutes. Major events like earthquakes, grid management errors, or construction accidents can cause these durations to rise considerably.

Take a look at the component below to see the number of current electricity customers without power in Alabama.

A solar energy system, whether or not it has a backup battery, could help reduce the effects of any future power interruptions you might face.

What impacts the cost of solar panels in Alabama?

Your Energy Needs -Even though larger solar panel systems are more expensive initially, the average price per watt reduces as the system size increases. Consumers often find that installing a solar system that can offset their electric bill is extremely useful. This method leads to maximum savings.

Make & Model - There are a wide variety of makes and models of solar panels and mounting equipment. Your installer’s system preferences might necessitate picking a reputable company. Buyers frequently find that using better quality models provides a more positive long-term experience.

Solar Panel Type - For numerous good reasons, monocrystalline panels are now the standard in the industry. Although they are more expensive, they deliver increased energy. The majority of installers use panels made from this material.

Your Property - No two properties or homes are identical. Trees, uneven ground, or other obstructions can increase the difficulty of the installation. Solar installers currently commonly leverage satellite imagery to evaluate your home and incorporate these considerations into the initial cost estimate.

Labor Rates - Variations in employee wages across companies cause expenses that are transferred to the consumers. Higher wages often lead to companies getting better reviews for their services and customer service.

Permitting & Interconnection - Your final installation cost will be impacted by local permitting and utility interconnection fees, which vary by area. Reliable local installers will incorporate these figures into your initial estimates to prevent any surprises.