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FLAT Rate Structure

Solar ROI for Alabama Power Customers

Alabama Power charges an average of $13.5¢/kWh. A 7 kW solar system produces a $7,801 NPV over 25 years.

$13,328
Net System Cost
$7,801
25-Year NPV
10 years
Payback Period
$0.141/kWh
Solar LCOE

Alabama Power Rate Structure

ParameterRate
Average residential rate$13.5¢/kWh
Rate structureFLAT
Export credit policyAvoided cost rate for excess generation

Solar System Economics

A 7 kW solar system for a Alabama Power customer costs $19,040 before incentives. The 30% federal ITC saves $5,712. The net out-of-pocket cost is $13,328.

At Alabama Power's $13.5¢/kWh average rate, the system saves $1,323 in year one, producing 9,800 kWh. The solar LCOE of $0.141/kWh is -4% below Alabama Power's current rate.

Battery Storage for Alabama Power Customers

$8,400
Battery Net Cost
$0
Daily Arbitrage
$0
Annual Arbitrage
-$11,382
25-Year Battery NPV

Alabama Power uses a flat rate structure without significant peak/off-peak spread. Battery value comes primarily from backup power and net metering optimization rather than TOU arbitrage.

FAQ: Solar for Alabama Power Customers

How much can Alabama Power customers save with solar?
A typical 7 kW solar system saves Alabama Power customers approximately $1,323/year in electricity costs. Over 25 years, the NPV of savings after system costs is $7,801.
What is Alabama Power's rate structure?
Alabama Power uses a flat rate structure at an average of $13.5¢/kWh. Without a large peak/off-peak spread, battery storage value comes primarily from backup power and net metering optimization.
Does Alabama Power offer net metering?
Avoided cost rate for excess generation
Should Alabama Power customers add battery storage?
Battery storage for Alabama Power customers has a 25-year NPV of -$11,382. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Alabama

TVA / Local Distributors
$11.8¢/kWh · FLAT
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