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Solar Tax Credits, Incentives and Solar Rebates in Alabama
Latest Update:by Simone Garneau
|Solar Value Index||$913|
|Solar Energy Produced||7,222 kWh / year|
|Average retail electricity price (as of December 2017)||12.64 cents / kWh|
|Average annual consumption per household (2015 data)||14,619 kWh|
|Levelized Cost of Solar Electricity||7.75 cents / kWh|
|Reached grid parity?||Yes|
The Yellowhammer State has a rich history and plenty of sunshine.Unfortunately, most of the solar potential goes unused. Alabama mostly runs on coal, natural gas and nuclear energy. The only renewable energy sources that make a dent are hydroelectric power and biomass.
At 12.64 cents/ kWh, the electricity prices in the state are below the national average of 12.81 cents / kWh. When it comes to average electricity consumption per household, residents of this state consume 14,619 kWh per year, above the national average of 10,836 kWh.
Alabama is a grid parity state, making solar power cheaper than the residential utility rates. Especially when used in combination with the 30% federal solar tax credit, the incentives listed below can significantly reduce the cost of installation of solar panels for your home or business.
- AlabamaSAVES Revolving Loan Program
- Local Government Energy Loan Program
- Local Option- Property Tax Exemption for Renewable Energy Faclities
- Local Option- Sales Tax Abatement for Renewable Energy Facilities
- TVA - Green Power Providers
- TVA - Mid-Sized Renewable Standard Offer Program
- TVA - Solar Solutions Initiative
Regulatory PoliciesUnfortunately, there are no state-specific regulatory policies in Alabama.
- Average electricity consumption data is from the U.S. Energy Information Administration.
- Average retail electricity price is from the Electric Power Monthly report of the U.S. Energy Information Administration.
- Solar Value Index is based on the analysis performed using our own solar energy calculator, Sunmetrix Discover.
- The estimated lifetime of solar panels is 25 years for the purposes of calculating the Levelized Cost of Electricity (LCOE).
- State incentives list is compiled from the Database of State Incentives for Renewables and Efficiency maintained by the N.C. State University.
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