Solar in Birmingham, AL
With Alabama Power's electricity at about 18.3¢ per kWh and 1,352 kWh of sun per kW, solar is not worth it for a typical Birmingham home today: about a 17.5-year payback.
- Payback, typical home
- 17.5 yrsAlabama: 18.8 yrs
- 25-year net
- $11,558after paying $19,000
- Sun
- 1,352kWh per kW per year
- Electricity
- 18.3¢2% above U.S. average
A typical Birmingham home, by the numbers
| Utility | Alabama Power |
|---|---|
| Electricity use | 1,129 kWh a month |
| Best-value system | 5 kW, about 12 panels, 6,759 kWh a year (50% of use) |
| Cost | $19,000 |
| First-year savings | $975 |
| Payback | 17.5 years |
| Exported power | 3¢/kWh (Alabama Power) |
Cash purchase, no federal credit, 3.2% yearly rate increases. Run it with your own numbers.
Homes in Birmingham
- Owner-occupied homes
- 46%
- Single-family detached
- 58%
- Median home value
- $159k
- Median year built
- 1965
- Population
- 198,173
- Roofs suitable for solar†
- 80%
Census ACS 2020–2024. †Share of 65,048 buildings Google Project Sunroof rated technically suitable (2019 snapshot).
Older housing stock. Many homes here were built before 1975. Have the roof and electrical panel checked before signing; a roof or panel upgrade can add thousands. Roof first?
Installers working in Birmingham
Public installation records for Alabama don't name installers, so we can't rank local companies here. Browse installers in Alabama.
Always verify the license and get at least three quotes. Compare quotes side by side.
Questions about solar in Birmingham
Is solar worth it in Birmingham, AL?
For a typical home in Birmingham, solar is not worth it at 2026 prices: a 5 kW system costs about $19,000 after state incentives, saves about $975 in year one and pays back in about 17.5 years. Enter your address for an estimate based on your roof and bill.
How much solar power does a system produce in Birmingham?
About 1,352 kWh per year for each kW of panels on a south-facing roof, based on PVWatts and local weather. That's 4% less than the Alabama average. East- or west-facing roofs produce roughly 10–20% less.
Who is the electric utility in Birmingham?
Most homes in Birmingham are served by Alabama Power, at about 18.3¢ per kWh on average. Some areas are served by City of Bessemer Utilities, Coosa Valley Electric Cooperative.
How much do solar panels cost in Birmingham?
A fair cash price is around $3.60 per watt before incentives, so about $19,000 for a 5 kW system. There's no federal tax credit for homeowners who buy in 2026.
Nearby
- Homewood 17.5 yrs
- Vestavia Hills 17.6 yrs
- Hoover 17.3 yrs
- Bessemer 17.4 yrs
- Trussville 17.5 yrs
- Alabaster 17.3 yrs
- Tuscaloosa 17.3 yrs
- Northport 17.2 yrs
- All of Alabama
Data: PVWatts (National Laboratory of the Rockies), EIA-861 2025 adjusted to 2026, U.S. Census ACS, LBNL Tracking the Sun, state policy research as of October 2026.