✅ Federal Incentives
All federal benefits apply to entities in Alabama, including:
30% Investment Tax Credit (ITC)
MACRS + Bonus Depreciation
Direct Pay (Nonprofits) via Inflation Reduction Act
✅ State Incentives
⚡ Property Tax Exemption
Abatement for qualifying renewable energy facilities:
Covers non-educational portion of property tax
Lasts 10–20 years, depending on local rules
Source
⚠ No Additional Tax Credits or State Rebates
Alabama does not currently offer state-sponsored tax credits or rebates for solar.
📥 Grants via ADECA (State Energy Program)
May fund solar or clean energy projects
ADECA site (check for open applications)
✅ Utility Incentives
Alabama Power
Net Billing (Solar Buyback):
Sells back excess solar energy at $0.0309–$0.043/kWh
Make-Ready EV Infrastructure:
Rebates for EV chargers and fleet electrification
Smart Thermostat Rebates
Limited-time reimbursements
TVA Areas
Energy efficiency rebates for residential and commercial upgrades
(HVAC, lighting, insulation)
→ TVA Rebates
✅ Nonprofit Incentives
Under the Inflation Reduction Act, nonprofits can:
Receive a direct cash reimbursement of 30% of the solar system cost
No tax liability required
Applies to schools, churches, community organizations