This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer.
Alabama offers very few solar rebates and incentives, which can deter many business owners from pursuing solar. However, federal incentives and a property tax abatement can still significantly reduce solar project costs in Alabama.
Alabama Property Tax Abatement
The state of Alabama offers a property tax abatement for qualifying renewable energy facilities in the state. However, only the noneducational portion of the property tax can be abated.
Fill out our interest form to get connected with one of our trusted installers and find out which regional solar incentives you may qualify for!
Featured Commercial Installation Projects
Federal Incentives Available in AL
Without many Alabama-specific solar incentives, AL business owners have the opportunity to take advantage of the federal solar incentives available. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system.
- Business Energy Investment Tax Credit (ITC)
The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district.
Connect with a local installer to find out if you qualify for additional tax credits.
- Renewable Electricity Production Tax Credit (PTC)
Business owners in Alabama may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.
Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.
- Modified Accelerated Cost-Recovery System (MACRS)
Alabama business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.
- Alabama Commercial Property-Assessed Clean Energy (C-PACE)
C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.
- Rural Energy for America Program (REAP Grant)
The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.
This grant is only available if you own a small business in an area with less than 50,000 in total population.
Connect with a local Alabama installer to see which incentives can contribute to your solar system.
Get Connected with an Installer!
As the premier solar equipment distribution company in the United States, Greentech Renewables goes beyond supply by connecting business owners to our vast network of trusted local installers across the South. Our installers work closely with one of our 9 Greentech Renewables locations in the South to guide you through each stage of the project from creating a custom proposal and project design to sourcing materials and installing the solar system. Fill out our interest form to get connected with the best installer for you!
Find the best installer for you in:
|
|
|
|
|
Ready to add solar to your business?
Let us connect you with the right installation team.
