Alabama · Performance incentive · Thin-stack program

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 kWh
stated benefit
Residential
eligible customers
14.4 yr
Alabama baseline payback
1
other Alabama programs
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Thin-stack program · late directory

Alabama tracks only 2 DSIRE solar programs; this performance incentive carries most of the registry weight against a 14.4-year modeled baseline.

  • Stack2 programs
  • In-state #1/1
  • Type #5/8
  • Baseline14.4 yr

In-state directory place #1 of 1 (late alphabet). National performance incentive directory #5 of 8. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

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

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

Why this performance incentive dominates Alabama's thin stack

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.

Frequently asked questions

What does the TVA Green Power Providers cover in a thin Alabama stack?
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 qualifies, and what does a late in-state directory place mean?
The program is available to residential customers in Alabama. Check the official program page for current eligibility requirements and deadlines. In-state directory place #1 of 1 (late alphabet).
Does this single-track performance incentive move Alabama solar ROI?
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?
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 · Alabama solar data · ROI calculator · All incentives.