Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Rate sheets read September 30 to October 1, 2026. Updated October 14, 2026.
A typical Alabama home system is 9.16 kW and costs about $31,510 in cash at $3.44 per watt, the top price in our Cost Index. Alabama Power charges solar homes $5.41 per kW a month (about $49.56 a month on this system, $595 a year), so our worked case pays back in about 119.6 years. Before that charge the same system would take about 36.7 years, but Alabama Power customers cannot avoid it.
Free for you. Solar providers pay us when you ask for quotes. How we make money
Alabama Power serves about 56% of Alabama homes. When a home makes its own power, Rider RGB adds a Capacity Reservation Charge of $5.41 a month for each kW of rated system size. It counts the size of the system, not the power it makes or sends out.
9.16 kW × $5.41. That is about $595 a year, in sunny and cloudy months alike.
At Alabama Power’s top export price, 5.47¢, a home would have to sell 906 kWh in a month to earn back $49.56.
The 7th revision of Rider RGB has applied since April 2022 bills.
A federal court ruled for Alabama Power and the Public Service Commission in the challenge to the charge. Plan as if it stays.
| System size | Each month | Each year |
|---|---|---|
| 5 kW | $27.05 | $324.60 |
| 8 kW | $43.28 | $519.36 |
| 9.16 kW (typical) | $49.56 | $594.67 |
| 12 kW | $64.92 | $779.04 |
Same system, same price, same sun. The only difference between our two cases is the charge: $594.67 a year, more than two thirds of what the system saves after upkeep.
| Case | Year-one savings | Owner costs a year | Simple payback |
|---|---|---|---|
| Alabama Power, Rider RGB charge included, Rate PAE exports | $1,133 | $869 | 119.6 years |
| Same system before the Rider RGB charge (illustration only; Alabama Power customers pay it) | $1,133 | $275 | 36.7 years |
Swipe the table sideways to see every column.
Neither case pays back within 25 years. A home that uses more of its solar power as it is made, on a smaller system, does better than these cases.
The name at the top of your electric bill decides what your extra solar power earns and what a solar home pays. None of these utilities uses net metering, and Alabama has no state net metering law or rule.
Rate PAE price by season, hour and rate plan, from April 2026 bills. Plus the $5.41 per kW Rider RGB charge and a $0.91 monthly meter charge. Serves about 56% of Alabama homes.
Next: ask which Rate PAE option the quote uses, and to see the charge as a line.
Solar Connect price for 2026, based on the wholesale rate of TVA, which supplies Huntsville. $100 application fee. For systems you own, up to 50 kW. Serves about 8% of Alabama homes.
Next: ask for the 2027 price before you sign, and apply early.
A home with solar moves to a time-of-use rate: 32¢ per kWh at peak, 5.321¢ off-peak, and a $46.95 basic service charge. Serves about 3% of Alabama homes, in Baldwin County.
Next: get the price for extra power in writing from Baldwin EMC or PowerSouth.
Rate PAE and Rider RGB are Alabama Power rate sheets, and Solar Connect is only for Huntsville Utilities customers. Other co-ops and city utilities, including the north Alabama utilities that buy their power from TVA, set their own rules. Before you sign, get five answers in writing: the price per kWh for extra power, any monthly charge for solar homes, any rate change when you add solar, the application fee and the size limit.
In Huntsville, a system that joins neither Solar Connect nor TVA’s own purchase program is not paid for extra power at all. Solar Connect has a participation cap, and the room left is not published. Baldwin EMC’s peak hours are 3 p.m. to 6 p.m. from April to October, and 6 a.m. to 8 a.m. from November to March. Shares of homes are from EIA-861 2024 data.
Your home uses its solar power first, and that part lowers your bill at your full price. Alabama Power buys what is left under Rate PAE. You do not pick the option: your rate plan decides it.
Option | Highest price | Lowest price |
|---|---|---|
Time of Day | 5.17¢ on weekdays from 10 a.m. to 9 p.m., June to September bills | 3.66¢ outside weekdays 7 a.m. to 9 p.m., October to May bills |
Time Advantage | 5.47¢ on weekdays from 1 p.m. to 7 p.m., June 1 to September 30 | 3.45¢ in all hours in October, April and May |
Residential Demand | 4.64¢ on weekdays from 1 p.m. to 5 p.m., April 1 to October 31 | 3.83¢ in all other hours, April 1 to October 31 |
Swipe the table sideways to see every column.
The September 2026 benchmark, $0.55 above the US average. These are modeled cash prices for solar only, not quotes we collected.
| Size (kW) | Cash price | Power made a year |
|---|---|---|
| 5 kW | $17,200 | 6,890 kWh |
| 8 kW | $27,520 | 11,024 kWh |
| 9.16 kW (typical) | $31,510 | 12,622 kWh |
| 12 kW | $41,280 | 16,536 kWh |
No Alabama program pays you for installing panels. What changes from home to home is what your utility pays for extra power and charges a solar home.
We found none: not from the state, Alabama Power, Huntsville Utilities or Baldwin EMC.
Alabama’s 2025 Schedule OC lists no income tax credit for home solar.
Not for a system you own placed in service after December 31, 2025.
Ask your installer about sales tax, and your county revenue office how it values a home with panels.
| Way to pay | Who owns the panels | Alabama point to check |
|---|---|---|
| Cash | You | No rebate or credit lowers the price; on Alabama Power the charge still applies |
| Loan | You | Compare the financed total with the cash price |
| Lease | The company | Huntsville’s Solar Connect is for systems the customer owns: ask Huntsville Utilities first |
| PPA | The company | On Alabama Power, ask who pays the Rider RGB charge |
Swipe the table sideways to see every column.
Three companies that list Alabama service, A to Z, not ranked. Only one has an Alabama office, and none prints an Alabama license number, so ask for it. Facts from their own sites, read October 13 and 14, 2026.
None of these three companies buys homeowner leads from EcoGen America. How we make money.
Ask each installer to name your utility and show the Rider RGB charge, or confirm in writing that your utility has no such charge.
Price solar for your Alabama homeEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. Privacy policy
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology