Solar Panel Cost in Dothan, AL
Updated 2026 guide to solar panel prices, savings, and payback period in Dothan.
Estimated Solar Savings
Solar Panel System Costs in Dothan, AL
Below are estimated costs for different solar panel system sizes in Dothan, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $11,400 | -$3,420 | $7,980 | 6,862 kWh |
| 6 kWMost Popular | $17,100 | -$5,130 | $11,970 | 10,293 kWh |
| 8 kW | $22,800 | -$6,840 | $15,960 | 13,724 kWh |
| 10 kW | $28,500 | -$8,550 | $19,950 | 17,155 kWh |
| 12 kW | $34,200 | -$10,260 | $23,940 | 20,586 kWh |
What Affects Solar Panel Cost in Dothan?
The average cost of solar panels in Dothan, AL is approximately $285/watt before incentives. For a typical 6kW residential system, that means a total cost of about $17,100 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $11,970.Dothan homeowners typically see a payback period of 9 years and save an estimated $29,000 over 25 years.
Factors that affect your cost in Dothan:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary within the Dothan metro area
- Local permits: Permitting costs and requirements vary by municipality in Dothan
- Incentives: State and local programs can significantly reduce your out-of-pocket cost
Solar Incentives Available in Dothan
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
The federal Investment Tax Credit (ITC) allows Alabama homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes.
State & Local Incentives
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
Alabama does not have a statewide mandatory net metering policy. Some utilities may offer voluntary programs for solar customers.
Not AvailableSRECs
Alabama does not currently have a Solar Renewable Energy Certificate (SREC) market.
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Solar Panel Cost FAQ - Dothan, AL
The average cost of solar panels in Dothan is approximately $2.85 per watt before incentives. A typical 6kW residential system costs about $17,100 before the 30% federal tax credit, bringing the net cost to around $11,970.
The typical payback period for solar panels in Dothan is approximately 9 years. After that, you'll enjoy free electricity for the remaining 15-20+ years of your system's life, saving an estimated $29,000 over 25 years.
Dothan homeowners can take advantage of the 30% federal solar tax credit, which reduces your system cost by 30%. Alabama also offers and various state-level incentive programs. Check our incentives page for the complete list.
Dothan homeowners can save an estimated $29,000 over 25 years by going solar. Actual savings depend on your electricity usage, system size, roof orientation, and available incentives. With electricity rates averaging $0.13/kWh in Alabama, solar provides significant long-term savings.
Solar Costs in Other Alabama Cities
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