Utilities / Alabama Power
Data last verified: August 2026Alabama Power Solar Policy in 2026
Net metering & export credits
No net metering — avoided-cost buyback (Rate PAE). Exports are purchased at avoided cost under Rate PAE (~3–5¢/kWh; summer weekday peak ~4.7–4.9¢, off-peak ~3–3.6¢). A monthly capacity reservation charge of $5.41/kW of installed capacity applies to every interconnected solar customer.
Electricity rates
AL residential average ~15¢/kWh (EIA 2026).
What this means for solar
- The $5.41/kW/month charge (~$27/month on a 5 kW system) makes oversized arrays uneconomical.
- Alabama has no statewide net metering law and no state solar tax credit.
Sources: EIA electricity rates (2026), state PUC orders and DSIRE (2026). Estimates only — verify with your utility tariff before deciding. Federal residential ITC (Section 25D) expired Dec 31, 2025.