Alabama Power is an investor-owned utility serving about 1,342,827 homes in Alabama. Here's what its rates and export rules mean for solar: for a typical customer, solar is not worth it.
Average price (2026 est.)
18.3¢11% above Alabama average
Typical bill
$2071,129 kWh a month
Exports credited
3¢Avoided-cost export credit
Typical payback
17.1 yrs4.8 kW, cash
Export rules for Alabama Power customers
Avoided-cost export credit — about 3¢ per exported kWh, instantaneous netting.
Export value approximate (avoided cost varies; not verified for 2026). Capacity reservation charge $5.41/kW-month makes residential solar payback very long; model this fee explicitly.
No net metering. Customer-sited generation billed under Rate RGB ($5.41/kW-month capacity reservation charge); excess energy delivered to the grid purchased at Alabama Power's avoided energy cost
Uses the utility's average price; time-of-use plans can change this, so pick your plan in the calculator.
Current residential rate plans
Rates we verified from Alabama Power's tariff documents. Prices are per kWh including the main riders where noted; check your bill for the plan you're on.
FD: Family Dwelling - Residential Service
Plan for solar customers. Effective 2026-01-01. Fixed charge $14.50/month.
Period
Price
12am–12am (4 months)
15.3¢
12am–12am (8 months)
15.0¢
All-in $/kWh: summer (Jun-Sep) first 1,000 = 0.15318, over 1,000 = 0.1557; winter (Oct-May) first 750 = 0.14978, over 750 = 0.13778. Base kWh charges (incl. RSE/CNP) 12.4384/12.6913c summer, 12.4384/11.2384c winter + ECR fuel 28.792 mills (Jun-Sep) / 25.392 mills (other months), secondary, per 2026 bill calculation factors.
Export value approximate (avoided cost varies; not verified for 2026). Capacity reservation charge $5.41/kW-month makes residential solar payback very long; model this fee explicitly. Exported power is credited at about 3¢ per kWh.
How much does electricity cost with Alabama Power?
Residential customers paid an average of 17.9¢ per kWh in 2025 (EIA), about 18.3¢ adjusted to 2026. The typical home uses 1,129 kWh a month, a bill of about $207.
Is solar worth it with Alabama Power?
For a typical customer, solar is not worth it: a 4.8 kW system costing about $18,380 pays back in about 17.1 years, with $12,093 net over 25 years.
How many Alabama Power customers have solar?
Alabama Power did not report residential net-metered solar to EIA for 2025.
Legal name: Alabama Power Co (EIA ID 195). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026, utility tariff sheets.