Free Solar Panels In Alabama?

Alabama At A Glance

In recent years, Alabama has embraced sustainability with a positive outlook, harnessing its abundant sunlight and investing in solar power initiatives. This commitment to clean energy not only aligns with environmental goals but also reflects Alabama’s dedication to progress and innovation, enhancing the state’s narrative with a forward-thinking spirit.

The Benefits Of Going Solar

There are different reasons to go with solar panels. Some of the benefits are

• Save money
• Energy independence
• Increase your homes value
• Support the renewable energy industry
• Earn cash back with incentives

Is The Free Solar Panel Pitch A Scam?

I don’t think the pitch for free solar panels in Alabama is really a scam, it is a marking gimic like we see all the time.

We see all sorts of advertisements for things that are free, and because these are lower-cost items we generally don’t say they are scams.  Just like the old saying goes you can’t get something for nothing, and nothing is truly free.

There are however ways to get solar panels installed with no upfront cost. 

Despite the feeling that the free solar panel pitch is deceptive, all these programs are trying to get you set with solar panels so you can start saving money.

The pros and cons of each plan vary and not every option is right for everyone.

The Real Scam With The Free Solar Panels

There are real scams in Alabama to watch out for. 

These are people who try to sell you something that isn’t going to live up to what they said it could do. You have to watch out for these scams in any industry, but especially with a major purchase like solar panels.

If you are entering into a long-term lease agreement or purchasing solar panels outright you want to make sure they are going to perform the way you expect them to.  The last thing you want to end up with is a solar setup that ends up increasing your monthly expenses.

Zero Cost Solar Options in Alabama

As we have said there are several ways to go with solar with no out-of-pocket expense. 

You can get setup with a solar power system and have it start saving you money every month immediately. Here are a few ways to go with solar power in Alabama.

Power Purchase Agreement

The power purchase agreement is probably the most common program advertising free solar panels.

This is where a company agrees to install, monitor, and maintain a solar panel system on your home’s roof, and in exchange you agree to purchase power from the company that owns the solar panels.

This is a long-term contract but gives you a better rate on your electric bill.  All the hassle of getting them set up is pretty much done for you and you start getting your power from a clean renewable energy source.

Solar Lease

The solar lease is similar to the power purchase agreement except instead of purchasing power from the company that owns the solar panels, you are renting the panels instead. 

When leasing your solar panels you get a set monthly bill from your solar company and in turn, get to use the power they generate to lower your electric bill.  With this plan, your payment to your solar company will not vary on your electric use and when combined with any amount you do owe the electric company should still come to a lower cost than what you had been paying for before.

Solar Loan

Taking out a loan to purchase solar panels doesn’t seem like a free option.  

However, you are going to be paying for your electricity already. If you can purchase solar panels with a solar loan companies try to tailor the loan for you so that what you are paying each month is less than what you have been paying for electricity. 

Again you are getting solar panels set up with no upfront cost and start saving money. In addition. since you own the solar panels your home value increases and there are many incentives that you may qualify for that will reduce your initial cost and may even put money back into your pocket.

Cash Purchase

The cash purchase is probably your best value option, but probably seems like the least free option there is. 

However, if someone said to you, buy this $100 thing with cash today and I’ll mail you a check for $100 tomorrow many people would consider that item free. 

Now it’s not quite the cut and dry with a purchase of solar panels, but once you apply the 30% tax incentive, plus other state and local incentives you might just find that your cost to go solar comes down drastically.  Then your home’s value goes up by an average of 4% when you have solar panels.

So let’s say your home is worth $250,000, you then have solar panels installed that cost $15,000.  You then get 30% from the ITC, so now they cost you $10,000 and this value is now transferred to the value of your home.  Not quite the same as cash in the bank but close.

Again there may still be more incentive you can claim as well.

Alabama’s Commitment to Clean Energy

In Alabama in recent years they have come around increasing there targets for clean energy.

Alabama stands at the forefront of a sustainable future with its unwavering commitment to clean energy. Embracing the abundant sunlight that graces the state, Alabama has strategically invested in solar power initiatives. This forward-thinking approach not only aligns with global environmental goals but also positions the state as a beacon of innovation in the Southern United States. The rise of solar energy projects underscores Alabama’s dedication to reducing its carbon footprint, fostering economic growth, and creating a cleaner, more resilient energy landscape for generations to come. This commitment to clean energy not only showcases Alabama’s environmental responsibility but also highlights its proactive role in shaping a greener and more sustainable tomorrow.

Goals 

Many states set specific renewable energy or clean energy goals.

These goals are often expressed in terms of a percentage of total energy production or consumption that should come from renewable sources by a certain target year. These goals provide a general framework for state commitment to clean energy but may not be legally binding.

Commitments

Some states go beyond setting goals and make formal commitments to specific clean energy targets.

These commitments may involve the passage of legislation or the adoption of executive orders that establish concrete targets for renewable energy adoption, emissions reduction, or other clean energy-related objectives. These commitments often signal a stronger political will to transition to cleaner energy sources.

Renewable Portfolio Standard

RPS are regulatory policies that mandate utilities to obtain a certain percentage of their energy from renewable sources.

States with RPS typically set increasing targets over time to gradually transition to a cleaner energy mix. Compliance with RPS is often mandatory, and utilities that fail to meet the standards may face penalties.

Solar Carve Out

Some states include specific carve-outs within their overall RPS, designating a certain percentage of the renewable energy target specifically for solar power.

This reflects a targeted effort to promote the development and adoption of solar energy within the broader context of renewable energy goals.

Reducing The Cost Of Going Solar In Alabama

There are many incentives help offset the the cost of going with solar panels, in some state you have access to a lot of them and some very few. 

Solar Incentives in Alabama Yes or No

Here is a quick list of common incentives and whether or not they are available in Alabama.

YES – The Federal Investment Tax Credit (ITC)

NO – State Solar Tax Credit

NO – State Solar Sales Tax Exemption

NO – An Income Tax Credit against your state income tax

NO – Solar Renewable Energy Credits

NO – Feed In Tariffs

YES – Net Metering ( by some providers)

NO -Solar Grants

Incentives For Going Solar

With a growing push for solar and other renewable energy sources to be adopted, there have been many government incentives to help lower the cost of going with solar power and other renewable energy sources.

Many of these incentives aim to directly lower the cost of solar panels in the form of tax credits.  Others dictate the amount of compensation you receive when you produce more power than you use.  Others still have simply dictated how much energy needs to be produced by renewable energy and have left it up to the utilities to decide how they make that happen. 

The Federal Investment Tax Credit (ITC)

• A 30% Federal Tax Credit

State Solar Tax Credit

• An Income Tax Credit against your state income tax

State Solar Sales Tax Exemption

• Solar panels can be purchased without paying the normal sales tax in Alabama

Renewable Portfolio Standard

• A commitment that the state has made to move the state to clean renewable energy.

Solar Carve Out

• A certain portion of the Renewable Portfolio Standard, that states how much clean energy needs to come from solar power.

Solar Renewable Energy Credits

• Credits that are awarded to owners of solar panels for how much solar energy they produce.

Feed In Tariffs

• This is a guaranteed set price that electricity companies are required to pay for any excess power produced and sent back to the grid generally set at above market rates.

Net Metering

• This is similar to the Feed In Tariff but is not generally above market rate and can be offered by individual electric companies.

Solar Grants

• Solar grants are like any grant, free money to get people set up with solar panels.  Although these are few and far between, some do exist from time to time.

Power Purchase Agreement

• An agreement between a solar company and the homeowner where solar panels are installed on the home but still owned by the solar company.  In return, the homeowner agrees to purchase power from the solar company.

Solar Lease Agreement

• A solar lease agreement is where a company installs solar on your home and you are basically renting the solar panels, and get to use them to generate electricity for you to use.

Solar Loans

Solar loans are essentially home improvement loans but are designed specifically to help people get using solar panels and may be tailored to work with Federal State and Local incentives.

Resources

Here we have sites that have more information on government incentives that will help you lower your cost of going solar. 

We will be adding links to highly authoritative sites, mainly government sites that speak directly about solar incentives. After all, if many of the programs are government-backed you might want to read that on the actual government site.

Federal 30% Tax Credit (ITC)

alabama.gov

dsireusa.org