Net metering calculator, Alabama

How net metering works in Alabama

There's no statewide mandate, so your utility decides the rules

The Alabama Public Service Commission has never required utilities to offer net metering, which is a different starting point from most states on this list. What you get depends on which of three utility types serves your address. Alabama Power runs its own Rate PAE (Purchase of Alternative Energy) tariff, crediting exports below retail while still billing imports at full price. Homes served by a TVA local distributor in northern Alabama fall under TVA's Dispersed Power Production or Green Power Providers programs instead, credited near TVA's own avoided cost. A handful of municipal utilities, including Huntsville Utilities, offer neither net metering nor net billing at all, and instead ask solar customers to choose upfront between using their power on-site or selling all of it at a flat rate; whichever type serves you, Alabama's tax credit and rebate estimator is worth checking before you assume any federal incentive is baked into the quote you got.

Check your bill before you assume a rate

Because Alabama's rules split three ways by utility type, the fastest way to know your actual export terms is to look at a recent bill or call your provider directly, rather than assume a single statewide figure applies; the state's renewable energy program summary is a useful starting point if you want to see how Alabama's utility rules got this way. If you're weighing whether a below-retail credit is still worth it, the glossary entry on net billing lays out how it differs from a true 1:1 exchange.

Self-consumption is worth more than exporting here

Since none of Alabama's three program types pay full retail for exports, electricity you generate and use immediately is consistently worth more than electricity you send to the grid. That makes system sizing matter more in Alabama than in a full-retail state: a system built to closely match your own daytime load captures more value than one built to maximize total output, whether that means shifting usage into daylight hours or storing exports in a battery for later. Pair this with the tax credit and rebate estimator to see the full picture before you commit.

Interconnection paperwork depends on your utility too

Alabama Power requires a distributed energy resources (DER) interconnection form before your system can connect, and rural cooperatives like Central Alabama Electric Cooperative run a similar but separate application process. Most installers handle this filing directly, but total cost still depends on system size and whether a utility upgrade study gets triggered. The grid interconnection cost estimator breaks down what to budget for on top of whichever utility's paperwork you're dealing with. See the glossary entry for net billing if that term is new to you.

Is off-grid worth considering given the patchwork of programs?

Even with Alabama's inconsistent export crediting, staying grid-tied is almost always cheaper than going fully off-grid, since off-grid systems need battery capacity sized for the worst week of the year rather than typical daily cycling. The grid tie vs off grid comparison tool runs both paths against Alabama's actual utility-specific numbers. Net metering is only part of what you can claim. The tax credit and rebate estimator in our Rebates & Incentives section estimates the tax credit and rebates available for your state.