City of Muscle Shoals and solar
City of Muscle Shoals is a municipal utility serving about 7,202 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.)
- 13.2¢20% below Alabama average
- Typical bill
- $1601,213 kWh a month
- Exports credited
- ~23%No statewide net metering
- Typical payback
- 22.5 yrs5.2 kW, cash
Export rules for City of Muscle Shoals customers
No statewide net metering (Alabama rule).
Alabama has no net metering law. Alabama Power buys any electricity you send to the grid at a low wholesale (avoided-cost) price. It also charges solar customers a monthly 'capacity reservation' fee of about $5.41 per kW of system size, which a federal judge let stand in March 2026.
Solar for a typical City of Muscle Shoals home
| System | 5.2 kW (50% of 1,213 kWh/month) |
|---|---|
| Cost | $19,620 |
| First-year savings | $769 |
| Payback | 22.5 years |
| 25-year net | $3,085 |
Uses the utility's average price.
Solar adoption
- Homes with solar (2025)
- —
- Share of customers
- —
- Residential solar capacity
- —
- Residential customers
- 7,202
EIA-861, 2025.
Questions about City of Muscle Shoals and solar
Does City of Muscle Shoals have net metering?
City of Muscle Shoals follows Alabama's rules: Alabama has no net metering law. Alabama Power buys any electricity you send to the grid at a low wholesale (avoided-cost) price. It also charges solar customers a monthly 'capacity reservation' fee of about $5.41 per kW of system size, which a federal judge let stand in March 2026.
How much does electricity cost with City of Muscle Shoals?
Residential customers paid an average of 12.9¢ per kWh in 2025 (EIA), about 13.2¢ adjusted to 2026. The typical home uses 1,213 kWh a month, a bill of about $160.
Is solar worth it with City of Muscle Shoals?
For a typical customer, solar is not worth it: a 5.2 kW system costing about $19,620 pays back in about 22.5 years, with $3,085 net over 25 years.
How many City of Muscle Shoals customers have solar?
City of Muscle Shoals did not report residential net-metered solar to EIA for 2025.
Legal name: City of Muscle Shoals (EIA ID 13144). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.