SolarReviews | Alabama Solar Power Rebates and Incentives

Solar Power Rebates, Tax Credits and Solar Panel Incentives in Alabama; 2012 Update Alabama solar incentives are somewhat behind those of most other states. There are some incentives available and of course the 30% Federal tax break. Federal Tax Credit The single most significant financial incentive for your solar power system in Alabama is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar system. State Incentives The Alabama legislature has not set any real targets for residential solar installations. However the Tennessee Valley Association or TVA do have some funding and rebates available. If you are in the jurisdiction of the TVA you can obtain a $1,000 rebate when you connect to the grid as well as .12 cents per kilowatt hour you put into the grid. It should be noted that independent generators can contribute as little as 500 watts and as much as 2,000 kW. Alabama municipal solar resources incentives: City of Florence Efficient Energy Incentives  If you live in Florence, you can get $200 cash for a new energy efficient home and $50 for a new water heater.  Alabama specific programs from the Federal Department of Energy   Alabama Solar Incentives and investment case: Summary April 2012 Alabama residents have a rather backward legislature in relation to solar power incentives. There is, as always the Federal 30% tax break and that is great but Alabama really need to get a proper state wide Net Metering solution in place this will get the solar uptake moving in the right direction. Local knowledge is going to be a great help to Alabama residents so getting 3 quotes here is going to help in that department. Example of a Return that can be achieved by buying a solar power system for your home in Alabama Size of System (kw)

Size of System (kw) 5
Space required (square feet) 650
   
Price of system per watt $3.50
Price of power (marginal cost high usage kwh’s) $ per kwh 0.12
Average daily kwh produced per 1 kw of solar 4.2
Total average daily production 21
Total Price (before incentives) $17,500.00
Federal Tax Credit $5,250.00
State Tax Credit $0
State Rebate (assuming PGE or SCE level 9, other utilities may be more) 0
   
Actual out of pocket cost after incentives claimed $12,250.00
   
Annual Power production 7665
Total Annual Energy savings based on net metering at 1:1 919.8
Cumulative Energy Savings 919.8
Annual Return on Investment 8% in the first year rising to 14% within 6 years assuming annual increases in electricity costs of 7 % per annum
   
Payback Time assuming 7% annual increase in power prices 8 years

Please remember that these numbers will need to be confirmed at the time of purchase with a licensed local installer as power yields and other information may make your system different to this typical example. Click “here” to get quotes from local solar installers.


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