Alabama Net Metering Rates 2026
Alabama solar exports are credited under avoided-cost buyback, worth roughly ~25–50% of retailof the retail electricity rate. Here's exactly how it works, which utilities offer it, and what it means for your payback.
How Net Metering Works in Alabama
When your panels produce more electricity than your home is using, the surplus flows back onto the grid and your meter records the export. Alabama utilities credit those exported kilowatt-hours at the utility's wholesale avoided-cost rate, well below retail. You draw that credit back down at night or on cloudy days, so you only pay for your net consumption across the billing cycle.
Because Alabama lacks a full retail-rate mandate, the value you capture depends heavily on your utility's specific buyback tariff — read your rate schedule carefully before sizing a system.
What It's Worth: ~25–50% of retail of Retail
The single biggest driver of solar payback is how much your utility pays for exported energy. Alabama's avoided-cost crediting pays well below retail, which lengthens payback and makes self-consumption (and batteries) more important.
The average AL homeowner reaches payback in 9.8 years and nets $28,400 over 25 years with these rules in effect.
Alabama Utilities Offering Net Metering
The major utilities operating in Alabama are Alabama Power, TVA. Net metering terms — true-up dates, monthly fees, and credit carryover — vary by provider, so confirm the current tariff with your specific utility before signing an installation contract.
Alabama Net Metering FAQ
What will net metering save you in Alabama?
Our calculator factors Alabama's avoided-cost buyback into your payback and 25-year savings — using your actual electric bill.