Alabama Power Solar Policy & Net Metering Guide (2026)

Complete solar policy guide for Alabama Power customers in Alabama. Review net metering rates, export compensation, interconnection fees, and available solar programs.

Last updated: Reviewed by: Sarah Chen
none Net Metering Type
$0.03/kWh Export Compensation
$100 Interconnection Fee
1,500,000 Customers Served
$0.18/kWh Peak Rate (TOU)
$0.06/kWh Off-Peak Rate (TOU)
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Solar Policy Details for Alabama Power

PolicyDetails
Net Meteringnone
Export Compensation$0.03/kWh
Interconnection Fee$100
Time-of-Use RatesYes (Peak: $0.18, Off-Peak: $0.06)
Net Metering CapNot yet reached
Renewable ProgramNot available
Battery IncentiveNot available
EV Rate ProgramNot available

Maximizing Solar Savings with Alabama Power

Time-of-Use Rate Optimization

Alabama Power uses time-of-use rates with peak pricing at $0.18/kWh and off-peak at $0.06/kWh. Solar panels produce the most energy during peak afternoon hours when rates are highest, maximizing your bill savings. Adding battery storage lets you store excess solar energy and use it during expensive peak periods.

Export Compensation

When your solar system produces more electricity than you use, the excess is exported to the grid. Alabama Power compensates you at $0.03/kWh for exported energy under their none policy.

State Incentives in Alabama

In addition to Alabama Power's policies, Alabama homeowners can access:

  • Federal ITC: 30% tax credit on solar installation
See All Alabama Incentives
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Frequently Asked Questions

Alabama Power offers net metering with a "none" rate structure. Export compensation is approximately $0.03/kWh.
The interconnection fee for Alabama Power is approximately $100. This is a one-time fee to connect your solar system to the grid.
Alabama Power offers time-of-use (TOU) rates. Peak rate: $0.18/kWh. Off-peak rate: $0.06/kWh. Battery storage can help you shift usage to off-peak hours.
Alabama Power does not currently offer specific battery incentives, but you may still benefit from battery storage with time-of-use rate optimization.
Alabama Power serves approximately 1,500,000 customers in Alabama.

SolarSavingsAI Research Team

Solar Energy Analysts

Our team analyzes solar incentive data from federal (DOE, IRS), state (DSIRE), and utility sources to provide accurate savings estimates. Data is reviewed quarterly and cross-referenced with NREL benchmarks.

Sources: DOE, IRS, DSIRE, NREL, EIA Updated: 2026 Full Methodology Editorial Standards

Cities Served by Alabama Power

Huntsville, AL 4.8 sun hrs/day Birmingham, AL 4.7 sun hrs/day Montgomery, AL 4.8 sun hrs/day Mobile, AL 4.9 sun hrs/day Tuscaloosa, AL 4.7 sun hrs/day Hoover, AL 4.7 sun hrs/day Auburn, AL 4.8 sun hrs/day Dothan, AL 5 sun hrs/day

Other Utilities in Alabama

Huntsville Utilities Net metering: none Muscle Shoals Electric Board Net metering: none Dixie Electric Membership Corp Net metering: avoided_cost Central Alabama Electric Cooperative Net metering: avoided_cost

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