Alabama · Performance incentive
TVA Green Power Providers
Pays residential solar owners in Alabama based on actual output -- see the rate, eligibility, and how it changes payback below.
- Premium payment per …
- stated benefit
- Residential
- eligible customers
- 14.4 yr
- Alabama baseline payback
- 1
- other Alabama programs
What it means
In Alabama, a 6 kW system already pays back in about 14.4 years on ~$1,185/year of modeled savings, and the TVA Green Power Providers stacks on top of that, on top of any federal credit.
- Premium paymen…
- stated benefit
- 14.4 yr
- baseline payback (pre-incentive)
- 2
- Alabama programs that stack
- partial
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
TVA purchases excess solar generation at a premium rate for residential systems.
Program at a glance
- Program type
- Performance incentive
- Eligible customers
- Residential
- Stated benefit
- Premium payment per kWh
- State electricity rate
- 13.8¢/kWh
- Alabama solar score
- 24/100
How Alabama compares to the U.S. average
Why this incentive matters more (or less) here - Alabama's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Alabama
The market this incentive operates in: total installed solar capacity in Alabama reported to the EIA.
How this incentive fits Alabama's solar picture
The TVA Green Power Providers pays based on actual measured generation rather than a one-time credit, one of Alabama's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Premium payment per kWh. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Alabama averages 4.9 kWh/m²/day of usable sunlight and residential rates of 13.8¢/kWh, producing an estimated 8,585 kWh/year and $1,185 of annual utility offset on a typical 6 kW system costing $17,100. That baseline already implies a 14.4-year simple payback and a 25-year modeled net of roughly $12,525 before this incentive - every dollar this performance incentive delivers compresses that payback further.
Few other programs are tracked here, so this incentive carries most of the weight for Alabama solar buyers. Alabama has 2 solar incentive programs indexed in DSIRE. The state's net-metering policy is classified as partial, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Alabama's full solar profile, score, irradiance, rates, payback, and every program you can claim. Alabama solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Frequently asked questions
What is the TVA Green Power Providers?
How does the TVA Green Power Providers work?
Who is eligible for the TVA Green Power Providers?
How does this incentive affect solar ROI in Alabama?
Are there other solar incentives in Alabama?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.