Solar & Net Metering Policy
Alabama does not currently have a statewide net metering policy. Solar owners should check with their specific utility for any available compensation programs. Alabama does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations.
Net Metering Notes
No statewide net metering; Alabama Power imposes a capacity reservation charge on solar owners.
Does Alabama have net metering?
Alabama does not have a statewide net metering policy. Contact your local utility to find out if they offer any solar compensation programs or alternative billing arrangements.
What solar tax credits are available in Alabama?
Alabama does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Alabama?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Alabama for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Alabama?
Alabama does not have a statewide solar property tax exemption. The added value from a solar installation may be included in your property assessment. Check with your county assessor for local rules.
Is there a sales tax exemption for solar in Alabama?
Alabama does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does Alabama have an SREC market?
Alabama does not currently have an active SREC market. Solar owners in Alabama cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Alabama?
Statewide utility rebates are not currently available in Alabama. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
Alabama Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.