Avoided Cost

Net Metering in Alabama

Current NEM policy, export rates, and impact on solar payback for Alabama homeowners.

NEM Export Rate

$0.045

per kWh

Avg Retail Rate

$0.143

per kWh

% of Retail

31%

compensation

Policy Status

Active

since 2020-01

System Limit

Up to 100 kW

max eligible

NEM Policy Details — Alabama

How Alabama compensates your excess solar generation

Avoided Cost Active

No statewide net metering mandate. Alabama Power offers a Solar Generation Buyback rate at avoided cost (~$0.045/kWh). No NEM policy from other major utilities.

NEM Rate$0.045/kWh
Retail Rate$0.143/kWh
Savings Gap-9.8c/kWh
Annual True-UpYes

Source: DSIRE, Alabama Power tariff sheets · Effective: 2020-01

Calculate Your NEM Savings in Alabama

$

NEM Rate Comparison

$0.00 Alabama: $0.045 $0.143 (retail)

Alabama's NEM rate is 31% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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