A larger system is penalised twice
The Capacity Reservation Charge is $5.41 per kW of installed capacity per month. So each additional kilowatt of array adds roughly $65 a year to your bill, permanently, before any consideration of what it generates.
Meanwhile the marginal capacity at the top of a design is the capacity most likely to produce surplus, and surplus is bought at roughly 3 to 5 cents per kWh rather than the retail rate closer to 16.
So the extra kilowatt costs more every month and earns less per kilowatt hour than the capacity below it. Those two effects compound rather than offsetting.
That is a genuinely unusual structure. Most states penalise oversizing only through low export rates; Alabama Power adds a fixed monthly penalty on top.
The sum worth doing yourself
For each additional kilowatt of capacity, work out the annual capacity charge, $5.41 times twelve, which is about $65.
Then work out what that kilowatt actually earns. If most of its output is exported at 3 to 5 cents, and a kilowatt of solar in Alabama produces on the order of 1,400 kilowatt hours a year, the export earnings alone may not clear the capacity charge.
That is the arithmetic that decides where your design should stop, and it is simple enough to check on paper.
Ask your installer to show it explicitly: for the last kilowatt of proposed capacity, the expected output, the split between self-consumed and exported, the value of each, and the capacity charge it triggers.
Coastal considerations while you are asking
Mobile is a Gulf Coast city, so salt air and hurricane wind loading are both real design inputs rather than footnotes.
Ask what the racking and fastener materials are, what corrosion rating they carry, and whether the manufacturer warranty has any exclusion or reduced term for coastal or marine installations.
Ask what wind speed the racking and attachment system is rated and engineered for, how many attachment points there are, and whether a structural assessment of the roof was performed.
Ask your insurer before installation whether the array is covered under dwelling coverage, whether your wind and hail deductible differs from your standard deductible, and whether the premium changes. That is a recurring cost and belongs in the arithmetic alongside the capacity charge.
Costing it out with the recurring charge included
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Mobile receives no federal tax credit, and Alabama has no state solar tax credit.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is retail value for self-consumed generation, 3 to 5 cents per kWh for exports, and the Capacity Reservation Charge at $5.41 per kW per month scaling with the size you install.
Ask for the marginal analysis on the last kilowatt of capacity, and add any insurance premium change as a further recurring cost.