Solar incentives and tax credits available in Dothan, AL

Solar Incentives in Dothan, AL

Complete guide to solar tax credits, rebates, and incentive programs available to Dothan homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Dothan homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Dothan, AL.

Alabama State Solar Incentives for Dothan Homeowners

AlabamaSAVES Loan Program

Loan

Low-interest financing available through the AlabamaSAVES program for energy efficiency and renewable energy improvements.

Low-interest loans for qualifying solar installations

TVA Green Power Providers

Rebate

Tennessee Valley Authority program available to some Alabama residents that provides credits for solar energy fed back to the grid.

Varies by utility and program availability

Net Metering in Dothan, AL

Limited/Unavailable

Alabama does not have a statewide mandatory net metering policy. Some utilities may offer voluntary programs for solar customers.

Solar Renewable Energy Credits (SRECs) in Dothan

Not Available

Alabama does not currently have a Solar Renewable Energy Certificate (SREC) market.

Tax Exemptions in Dothan

Property Tax Exemption
No property tax exemption for solar systems
Sales Tax Exemption
No sales tax exemption for solar equipment

How to Claim Solar Incentives in Dothan

  1. Install your solar system: Work with a qualified Dothan solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your Alabama energy office or local Dothan utility to apply for available incentives.
  4. Set up net metering: Check with your local utility about available programs.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Dothan, AL

Dothan homeowners can take advantage of the 30% federal solar tax credit, plus 2 state-level incentive programs. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Dothan homeowners approximately $5.1k on a typical system. Combined with Alabama state programs, total savings over 25 years can reach $29k or more.

Alabama does not have a statewide mandatory net metering policy. Some utilities may offer voluntary programs for solar customers.

To claim the 30% federal ITC, Dothan homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
$0Down Options