February 13, 2025

Alabama Electric Vehicle Tax Credits, Rebates, and Incentives

5 Min. Read

Alabama is shifting gears to accelerate toward an electrified future, offering valuable incentives and programs that make EV ownership more practical and cost-effective and help residents embrace the power of electric vehicles (EVs).

With generous rebates, optimized charging rates, and expanding infrastructure, Alabama is creating more opportunities for individuals and businesses to transition to electric mobility.

In this guide, we’ll explore Alabama’s EV tax credits, rebates, and incentives, along with key details on charging programs and public EV charging infrastructure and availability across the state.

Alabama EV Rebates & Incentives

While Alabama does not currently provide state-level tax credits for fully electric or plug-in hybrid electric vehicle (PHEV) purchases, federal tax credits are available to help offset the costs of buying qualifying EVs and PHEVs.

The federal EV tax credit offers up to $7,500 for new qualified plug-in electric vehicles or fuel cell EVs. Additionally, a tax credit of up to $4,000 is available for used electric and plug-in hybrid electric vehicles, making EV adoption even more affordable for cost-conscious drivers.

Central Alabama Electric Cooperative members who own or lease a battery electric vehicle (BEV) registered within the service territory may also qualify for a $100 rebate. $100 rebate.

Alabama EV Charger Rebates

Although Alabama does not yet provide state-level rebates for EV chargers, several utility providers, such as Alabama Power and Central Alabama Electric Cooperative (CAEC), offer programs that help lower EV charging costs and make it more affordable for their customers to drive electric.

Alabama Power

Alabama Power offers a one-time $500 rebate for residential customers who purchase and install a Level 2 home charger. To qualify, customers must lease or own a battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV) and install the charger in a single-family home.

EV Charging Rates in Alabama

Charging an EV at home or on the go doesn’t have to be costly with strategic charging. Several Alabama utilities offer time-of-use (TOU) rate plans that incentivize off-peak EV charging, reducing electricity costs for both home and public charging.

Alabama Power

Alabama Power offers the Time Advantage – Energy Rate Plan, which provides discounted rates based on the time of day and season. Economy pricing applies during all weekend hours year-round and all hours in April, May, and October, with rates as low as $0.09 per kWh. Summer peak hours (June through September) are weekdays from 1 p.m. to 7 p.m., with rates at $0.25 per kWh. During winter months (November through March), peak hours are weekdays from 6 a.m. to 9 a.m., with rates at $0.12 per kWh.

Pioneer Electric Cooperative

Pioneer Electric Cooperative offers a time-of-use TOU rate plan with off-peak energy charges at $0.09 per kWh and on-peak energy charges at $0.45 per kWh. Additionally, there is a $50 monthly access charge, no demand charge, and a wholesale power cost adder of $0. The peak hours for winter are from 6 a.m. to 8 a.m. (November 1 to April 30), while summer peak hours are from 3:30 p.m. to 6 p.m. (May 1 to October 31).

Tallapoosa River Electric Cooperative (TREC)

Tallapoosa River Electric Cooperative (TREC) offers a TOU rate plan with an on-peak energy charge of $0.15 per kilowatt-hour (kWh) and an off-peak energy charge of $0.10 per kWh. The on-peak hours are from 3:30 p.m. to 6 p.m. (May 1 to October 31) and 6 a.m. to 8 a.m. (November 1 to April 30), while off-peak hours apply during all other times, weekends, and holidays.

Tennessee Valley Authority (TVA)

Tennessee Valley Authority (TVA) offers a TOU rate plan with on-peak rates of $0.15 per kWh and off-peak rates of $0.07 per kWh. On-peak hours are from 3 p.m. to 7 p.m. (June to September), while off-peak hours apply to all other times, weekends, and holidays.

Finding Public EV Charging Stations in Alabama

Alabama is rapidly expanding its public charging infrastructure to support the state’s growing EV adoption.

With over 300 public charging stations, including Level 2 and DC Fast chargers, drivers have reliable access to EV charging along major highways, in urban areas, and at other popular destinations.

How Many Public EV Charging Stations Are in Alabama?

Alabama currently has approximately 276 public charging stations for EVs, including both Level 2 and DC Fast chargers, with more infrastructure being added regularly.

How Much Do Public EV Charging Stations Cost in Alabama?

The cost of using public EV charging stations in Alabama varies depending on the provider, charger type, and charging speed.

In addition to any other charging station or parking fees, Level 2 EV chargers typically cost drivers between $0.10 and $0.20 per kWh, while DC Fast chargers may cost between $0.30 to $0.50 per kWh.

Are There Free Electric Car Charging Stations in Alabama?

Yes, Alabama offers several free electric vehicle (EV) charging stations across the state, enhancing accessibility for EV owners.

Some locations, such as public libraries and municipal facilities, offer free EV charging as a courtesy, though these options are often limited and are best recommended to be used as supplemental charging as they are often in high demand and often cannot be used for hours at a time.

In Tuscaloosa, for instance, there are 13 free public charging stations available. Similarly, Montgomery provides 22 free charging stations for public use.

Additionally, the University of Alabama has installed multiple charging stations on its campus, offering free charging to students, faculty, staff, and visitors. These stations are strategically located in various parking areas, including the Presidential Parking Deck and Riverside Parking Deck, among others.

Where Are Public Charging Stations Located for Electric Cars in Alabama?

Public chargers are widely distributed across AL’s urban centers, highways, and key destinations. Use the Alternative Fuels Data Center for precise locations and availability.

Electrification in Alabama

With the savings available in Alabama, including tax credits, charger rebates, and TOU rates, alongside the rapidly growing rate of EV adoption, Alabama is embracing electrification and making EV ownership more practical with growing incentives and charging programs.

To maximize savings and ensure safe, efficient home charging, professional installation is essential and with numerous utility programs offering valuable incentives, there’s never been a better time to go electric in Alabama.

The cost savings created by adopting clean, sustainable energy are just the start of the benefits you’ll see, and by partnering with a qualified electrician who can tailor an EV charger installation to your specific needs, you can maximize these benefits even more.

As North America’s most trusted and largest network of certified EV charger installers, Qmerit is recommended by automakers, EV charger manufacturers, utilities, businesses, and homeowners alike. Rated #1 in customer satisfaction, our expert network has installed over 450,000 EV charging stations across the U.S. and Canada.

Discover how Qmerit is paving the way forward for residential EV charger installation and whole-home electrification solutions. Contact us today to find out how easy home electrification can be!