Alabama Solar
Incentives & Rebates

Updated April 5, 2021

Alabama has the Federal Solar Tax Credit

The Federal Investment Tax Credit (ITC) is available to Alabama homeowners who purchase their solar panel system outright. This credit currently amounts to 26% of your solar system’s cost. In 2023, the tax credits for installations will drop to 22%. This is one of many reasons why it makes sense to go solar without delay.

Alabama Solar Power Performance Payments

Alabama offers Solar Power Performance Payments, which are production incentives through the Tennessee Valley Authority. These are small cash payments based on the number of kilowatt-hours (kWh) or BTUs generated by a renewable energy system.