Typical customer: Not worth it

Alabama Power and solar

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.

Source

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

Alabama net metering details

Solar for a typical Alabama Power home

System4.8 kW (50% of 1,129 kWh/month)
Cost$18,380
First-year savings$970
Payback17.1 years
25-year net$12,093

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.

PeriodPrice
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.

Tariff document

Solar adoption

Homes with solar (2025)
—
Share of customers
—
Residential solar capacity
—
Residential customers
1,342,827

EIA-861, 2025.

Questions about Alabama Power and solar

Does Alabama Power have net metering?

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.