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Alabama solar and rebates

Alabama Net Metering and Utility Rebates: Solar Data Today

Net metering and utility efficiency rebates in Alabama, from federal data: how many homes use net metering, what utilities paid out and where to find current offers.

Reviewed Net metering and efficiency data: EIA Form EIA-861, 2025. Federal rules checked October 10, 2026

Net metering customers

93

0.0 per 1,000 homes

Capacity

1.5 MW

15.7 kW per customer

Efficiency incentives per home

$1.90

45th of 50

Average price

16.09 cents

7% below the US average

Net metering in Alabama

Utilities in Alabama reported 93 residential customers on net metering in 2025, with 1.5 megawatts of capacity, which averages 15.7 kilowatts per customer. That is 0.0 customers per 1,000 homes. Among the 51 places that reported, Alabama ranks 50th, and the national ranking is on the net metering by state page.

Alabama utilities with the most residential net metering customers, 2025
UtilityNet metering customersMegawatts
Central Alabama Electric Cooperative360.6
Foley Board of Utilities310.3
Covington Electric Cooperative150.1
Southern Pine Electric Cooperative40.0
Coosa Valley Electric Cooperative10.0

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), net metering schedule, residential. The count covers net metering only. Solar homes on other export arrangements are tracked separately by EIA.

What an exported kWh is worth in Alabama

The value of a solar export depends on the credit your utility pays. As an illustration, take 7,000 kWh of solar power in a year, a made-up figure and not a forecast for any home. At the 2025 Alabama average price of 16.09 cents per kWh, that power is worth $1,126 if the utility credits it at the full retail price. If the utility credits exports at half that rate, it is worth $563.

The gap shows why the export credit matters so much. Ask the utility which applies to you, and use the solar savings calculator to set the retail and export prices separately.

Utility efficiency rebates in Alabama

In 2025, 5 Alabama utilities reported efficiency programs to EIA. Together they paid about $4,603,300 in incentives to residential customers, or $1.90 per home, which ranks 45th of 50. The programs reported 45,000 megawatt hours of first year residential savings, about 9.8 kWh for each dollar of incentive.

Alabama utilities paying the most residential efficiency incentives, 2025
UtilityPaid to residential customers
Tennessee Valley Authority$4.3 million
PowerSouth Energy Cooperative$208 thousand
Alabama Power$42 thousand
Wiregrass Electric Cooperative$9 thousand

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), energy efficiency schedule. Paid incentives show what a utility spent, not what you can get. See efficiency rebates by state for the national ranking.

What the federal credits mean in Alabama

The IRS says the residential clean energy credit, which covered solar panels, does not apply to expenditures made after December 31, 2025, and the home improvement credit does not apply to property placed in service after that date. That is true in every state. What remains are state and utility offers, and the federal home energy rebates that states run. See solar incentives and home energy rebates.

Source: IRS FS-2025-05, read October 10, 2026. This is not tax advice.

Where to look for current Alabama offers

  1. Search the DSIRE database for Alabama incentives and net metering rules.
  2. Enter your ZIP code in the ENERGY STAR rebate finder.
  3. Ask your electric company about its net metering, export credit and rebate programs. Find it in the Alabama utility list.
  4. Read the rules at the Alabama Public Service Commission, which oversees investor-owned utilities.

Alabama solar and rebate questions

Does Alabama have net metering?

Alabama utilities reported 93 residential net metering customers and 1.5 megawatts in 2025. The credit for exports depends on the utility and the state rules, so ask yours.

Is there a federal solar tax credit in Alabama?

The IRS says the residential clean energy credit does not apply to expenditures made after December 31, 2025, so it does not apply in any state for new installs.

How much do Alabama utilities pay in efficiency rebates?

In 2025, Alabama utilities that reported to EIA paid about $4,603,300 in efficiency incentives to residential customers, about $1.90 per home.

Where do I find Alabama solar and rebate offers?

Search the DSIRE database and the ENERGY STAR rebate finder, then ask your electric company and your state energy office before you sign anything.

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