Solar Incentives in Madison, AL
Complete guide to solar tax credits, rebates, and incentive programs available to Madison homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Madison 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 Madison, AL.
Alabama State Solar Incentives for Madison Homeowners
AlabamaSAVES Loan Program
LoanLow-interest financing available through the AlabamaSAVES program for energy efficiency and renewable energy improvements.
TVA Green Power Providers
RebateTennessee Valley Authority program available to some Alabama residents that provides credits for solar energy fed back to the grid.
Net Metering in Madison, AL
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 Madison
Alabama does not currently have a Solar Renewable Energy Certificate (SREC) market.
Tax Exemptions in Madison
How to Claim Solar Incentives in Madison
- Install your solar system: Work with a qualified Madison solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Alabama energy office or local Madison utility to apply for available incentives.
- Set up net metering: Check with your local utility about available programs.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Madison, AL
Madison 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 Madison 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, Madison 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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