Alabama Solar Panel Laws

Since 2013 alabama power has assessed a fee for installing rooftop solar power.

Alabama solar panel laws.

The fee is not exclusive to solar panel users but those with solar panels make up the majority of those who pay. The psc also approved alabama power s request to increase the fee from 5 per kilowatt per month to 5 41 per kilowatt per month. At the end of 2020 the amount of the credit will decrease from 26 to 22 of the cost of the solar installation. Alabama s solar property tax exemption alabama tax code section 40 9b 1 provides a property tax abatement for owners of qualifying renewable energy facilities.

The advantage of installing solar panels in alabama is that the state receives excellent sunshine so a solar system here will produce a lot of energy. The cost of an outright purchase of a solar panel is relatively high. Alabama does not have a legal framework for solar leases and power purchase agreements which means the only option to go solar for 0 down is to take a loan. Being familiar with solar panel laws in alabama can help you to determine whether or not solar panels are right for your home.

After it was running he noticed fees on his alabama power bill that he didn t understand and learned there was a 5 per kilowatt capacity charge on customers who use solar panels to produce a. What stands out is the lack of a leasing options in alabama which has been replaced in the graph by an estimate for a small system. The most significant and only incentive to install solar panels for homes and businesses in alabama is the federal solar tax credit. There are some clear benefits to solar panel installation and you ll be better equipped to enjoy all of those benefits if you make sure you re familiar with your state s laws.

Wednesday marks the fifth anniversary of state regulators approval of alabama power s fee. Ideally it should be a low interest loan such as a heloc home equity line of credits in order to maximize the return on investment. Solarpowerrocks provides a great breakdown of solar incentives and policy for each state within the us. It requires some solar generating customers to pay 5 per kilowatt each month according to alabama.