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What Alabama Power pays for exported solar
For a new rooftop system, Alabama Power credits exported energy at about 4.10¢ per kWh[1], against an average Alabama residential price of 16.51¢[2]. Every kWh you send to the grid earns this rate; power you draw is billed at retail.
Other Alabama utilities, co-ops and municipal utilities set their own rates; check your utility's current tariff.
State rules that apply
- What the rule says: “Alabama does not offer net metering policies, but the state does encourage energy efficiency.”[3]
What it means for sizing and batteries
When exports earn much less than retail, each kWh you use at home as it is produced is worth more than one you export. Size to your daytime and evening use, shift loads (laundry, dishwasher, EV charging) to sunny hours or the plan's off-peak window, and price a battery against the gap between the retail and export rates.
The calculator uses the statewide rule until we add utility rates. See what solar costs in Alabama.
FAQ
Frequently asked questions
Does Alabama have net metering?
Alabama has no statewide net metering law or rule, so each utility (Alabama Power, TVA distributors, co-ops) sets its own terms for crediting exported solar.
sources
[ 3 ]Every number on this page links to one of these sources. Dates show when we last checked each one.
- Alabama Power - Rate PAE, Purchase of Alternate Energy (Forty-Seventh Revision, April 2026 Billings)alabamapower.com · checked Nov 5, 2026
- EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
- DSIRE - Alabama Programsprograms.dsireusa.org · checked Nov 5, 2026
Tariffs last re-checked November 5, 2026.