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Is a solar panel installation worth it in Alabama?

Quick answer: Only partly, in dollar terms. In Alabama, a solar panel installation typically returns about 29% of its cost at resale, below the ~30% national average. It adds real value, but treat it as an improvement you'll enjoy rather than an investment that pays for itself.

How Alabama compares

Alabama is part of the East South Central U.S. Census division, which has the 5th-highest renovation resale returns of the 9 divisions in Roots' valuation model. In practice that means a solar panel installation that returns ~30% of its cost nationally typically returns ~29% for a Alabama home.

The same regional adjustment applies across the division (Alabama plus KY, MS, TN). Nationwide, the spread for this project runs from ~24% in the West North Central division to ~35% in the Pacific division. See the national breakdown for every region.

The East South Central market

Kentucky, Tennessee, Alabama, and Mississippi combine affordable housing with a handful of fast-growing metros like Nashville and Huntsville, and renovation returns here track close to the national average. Outside the boom metros, buyers are value-driven and reward condition over luxury.

Hot, humid summers put air conditioning at the center of homeownership here, making mechanical condition a real factor in buyer confidence.

How other projects return in Alabama

ProjectTypical return in Alabama
Solar panel installation (this page)~29%
Wood deck addition~82%
Bathroom remodel~73%
Basement remodel~70%
Window replacement~66%

Return figures are typical resale-return estimates from Roots' home valuation model. Actual results vary by market, home, and workmanship, and shouldn't be relied on for lending, insurance, or tax decisions.

Sources: national baseline for this project calibrated against the 2025 Cost vs. Value Report (Zonda); regional adjustment derived from division-level averages in the 2024 Cost vs. Value Report.

Protect the value you add

Whatever the project returns on paper, condition decides what you actually get: in Roots' model the value of completed work fades as it ages, and a documented maintenance record helps a home sell closer to asking. If you're planning around resale value, start with upkeep. The free maintenance checklist generator builds a seasonal schedule for Alabama homes in about a minute.

The bottom line

“According to Roots' home valuation model, Alabama's East South Central region has the 5th-highest renovation resale returns of the 9 U.S. Census divisions. A solar panel installation there typically recoups about 29% of its cost, within a nationwide range of ~24% to ~35%.” Roots home valuation model (regionally adjusted resale-return estimates)
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Frequently asked questions

Is a solar panel installation worth it in Alabama?
Only partly, in dollar terms. In Alabama, a solar panel installation typically returns about 29% of its cost at resale, below the ~30% national average. It adds real value, but treat it as an improvement you’ll enjoy rather than an investment that pays for itself.
How does Alabama compare with the national average for a solar panel installation?
Homeowners in Alabama typically recoup about 29% of the project’s cost at resale, versus ~30% nationally. Alabama is part of the East South Central Census division, which has the 5th-highest renovation resale returns of the 9 U.S. divisions.
What most affects the actual return in Alabama?
Recency and condition. In Roots’ model, work under 2 years old counts fully toward resale value, then depreciates toward ~20% after 10 years. A home with a documented maintenance record also typically sells closer to asking. Market conditions in the East South Central division set the regional baseline.
Where do these numbers come from?
Roots calibrates the national baseline for a solar panel installation against the 2025 Cost vs. Value Report (Zonda), then applies a East South Central-division adjustment derived from division-level averages in the 2024 Cost vs. Value Report, plus the model’s own age and condition factors. Figures are modeled estimates, not appraisals.
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