Cost of solar in Montgomery, AL

Electricity Consumption in Montgomery

Electricity Consumption by Alabama residents averages 1261 kWh per month. It ranks #51 in the nation for savings from installing solar panels on the home.

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Solar power in Montgomery, Alabama

Alabama Power Company offers its Montgomery solar customers a net metering program. The utility will pay customers for the excess generation their solar system produces at a rate referred to as the “rate of purchase of alternative energy”. This rate is less than the retail rate of electricity. The rate you receive for excess energy in Alabama varies depending on what time of day and what time of year the energy was produced.  Although the rate you receive is less than the retail rate, it is still extra money in your pocket that can be used to cover your utility bill costs. 

Montgomery residents can also take advantage of the federal solar tax credit. The tax credit is equal to 30% of the cost of a solar system and is applied to your federal income taxes. In some cases, the credit could wipe out your entire tax bill for a year! The combination of the federal tax credit and Alabama Power Company’s net metering program can provide you with a great return on investment when installing a solar system in Alabama. 

Even if you are not convinced about solar we recommend that at the very least you use the solar panel calculator for Montgomery to find out:

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Solar power in Alabama

The average cost of installing residential solar panels in Montgomery, Alabama in 2020 is $2.61 per watt. The average system size in the US is 6 kilowatts, which means the average price of a solar system in Montgomery, AL is $13,050. (before claiming 26% tax credit and other rebates)

What does the cost of a real solar system look like?

Facts about installing a 12.15kW solar system in Montgomery, AL

This system would offset 100% of your energy usage if your typical monthly bill is $154, however your situation may vary so try our Montgomery solar calculator to get a result tailored to you.


Net cost of system
Cash - after 26% solar tax credit

9 Years 3 Months

Average payback time


Annual power production


levilized cost of solar energy


If you don't get solar
The forecast average utility price over the next 25 years

Cash flow graph based on cash purchase of this 12.15kW system

Life-time savings on this system over the next 25 years


(Prices shown after repayments of capital)


Solar calculator and quote comparison tool

Average total cost of solar panel installation in Alabama

System Size Cash purchase
After 26% solar tax credit
Financed purchase
After 26% solar tax credit
3kw $6,305 $6,809
4kw $8,199 $8,855
5kw $9,953 $10,749
6kw $11,588 $12,515
7kw $13,105 $14,154
8kw $14,563 $15,728
9kw $15,851 $17,119
10kw $17,020 $18,382


Going solar in Alabama

Check out all of the ways energy providers of Alabama can help you be more energy efficient and save money.

The following programs are available:
Incentive Name Eligibility Type
Residential Renewable Energy Tax Credit Federal Personal Tax Credit
Local Option - Sales and Use Tax Exemption State Sales Tax Incentive
Local Option - Property Tax Exemption State Property Tax Incentive
Alabama Power Company - Net Metering Utility Net Metering

Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.