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
Visit the official program page

How Alabama compares to the U.S. average

Why this incentive matters more (or less) here - Alabama's solar fundamentals against the national average.

Irradiance
Alabama: 4.9 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Alabama: 13.8¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Alabama: 14.4 yr
U.S. avg: 14.2 yr

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.

0 MW200 MW400 MW600 MW800 MW 201620172018201920202021202220232024 666 MW
Alabama now has about 666 MW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

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?
The TVA Green Power Providers is a performance incentive available to residential solar customers in Alabama. The stated benefit is Premium payment per kWh.
How does the TVA Green Power Providers work?
TVA purchases excess solar generation at a premium rate for residential systems.
Who is eligible for the TVA Green Power Providers?
The program is available to residential customers in Alabama. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Alabama?
Alabama has an estimated 14.4-year payback for a 6 kW system before incentives, with about $1,185/year in modeled savings. A performance incentive like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Alabama?
Yes - Alabama has 2 solar incentive programs tracked in DSIRE. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

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.