Cost of Solar Panels in Alabama: Local Solar Installation Prices (2022)
Here’s a quick look at the estimated cost of solar in Alabama:
- Average Cost Per Watt: $2.45
- Cost of Average System: $20,850*
- Cost of Energy Without Solar: $56,765
- Payback Period: 11 Years**
- Lifetime Savings of Going Solar: $28,590
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Customer service varies by local dealer
- Solar Panels
- Solar Batteries
- EV Chargers
- System Monitoring
Creative Solar USA
- Representatives are experts on local policies
- Comprehensive service offerings
- Many years of experience
- No leases or PPAs
- Limited brands of solar equipment available
- Solar Panels
- Solar Batteries
- EV Chargers
- Community Solar
- Electrical Work
Eagle Solar & Light
- NABCEP-certified technicians
- Offers products from leading manufacturers
- Locally owned and operated
- Award-winning company
- Relatively young company
- Limited information available on website
- Slightly limited service offerings
- Solar Panels
- Solar Batteries
- Community Solar
- Off-Grid Solar Solutions
Cost of Solar Panels in Alabama
Solar panel systems in Alabama typically cost around $2.45 per watt, which is quite a bit cheaper than the national average of $2.66. However, most Alabama solar customers need an 11.5-kW system to offset the average electricity bill of $144 per month. This is one of the largest monthly bills in the country, which both makes solar more expensive to install and more worth it for long-term savings.1
Even with the lower cost of solar equipment, Alabama residents will pay more for their systems than most. The average total cost for a home solar project is $28,175 before the federal tax credit or $20,850 after the credit is applied.
Solar Panel System Installation Cost in Alabama
The most significant factor when estimating your cost of going solar is the size of the system you need. Every additional kilowatt required to offset electricity costs will bump up your total by an estimated $2,450. The average home in AL requires an 11.5-kilowatt system, but the table below provides typical pricing for other standard system sizes in the area.
|Size of Solar Panel System||Alabama Solar Panel Cost||Cost After Federal Tax Credit|
Want to see a list of the top solar installers in Alabama that can provide you with an affordable, high-efficiency system? Click here.
What Determines the Cost of Solar Panels in Alabama?
System size is the most significant factor to consider when estimating the cost of going solar, but there are other cost factors at play that can influence your total. We’ll discuss the other things you’ll need to consider below.
Solar equipment might all look similar to the untrained eye, but different brands provide wildly different energy efficiency and value. Some brands and pieces of equipment produce and store more energy and can help you save money on electric bills in the long run, but they usually cost more upfront. The most efficient solar panels — like Maxeon/SunPower panels — fall into this category of high-cost and high-value, as do Tesla Powerwall batteries.
Many solar installers in Alabama allow you to customize your system beyond brand selection. Some companies just tackle simple systems consisting of solar panels and inverters. Others provide access to add-on products like electric vehicle chargers and solar batteries to provide off-grid power at night or during a blackout. These additional pieces of equipment will, of course, bump up your cost significantly.
The average cost of going solar in Alabama — $28,175 — is prohibitively expensive for many homeowners. Thankfully, most residents have access to solar financing that reduces upfront costs and makes renewable energy more accessible.
However, financing will increase your total costs due to the interest you’ll pay over the lifespan of the loan. Even low-APR solar loans will end up costing more than a cash purchase in the long run. It’s wise to consult with a solar installation company or loan provider to determine your all-in price before committing to a solar loan.
You can maximize your savings with a solar loan by choosing a low-APR option and making the largest down payment that you can comfortably afford.
Solar Installation Company
Finally, the installation company you choose to handle your solar conversion can have a significant impact on your total.
First, solar companies can upcharge equipment and charge different prices for their labor. That means you could pay more with one company than you would with another installing the exact same equipment.
The equipment provided by an installer will generally determine whether you’ll pay more or less than the average throughout Alabama. For example, a company that only offers high-quality, high-efficiency solar equipment will naturally cost more than a company that keeps prices down by delivering the cheapest solar panels. Companies that include high-efficiency equipment do, however, tend to save you more over time.
Alabama Solar Incentives
Many Alabama homeowners understandably struggle with the idea of paying nearly $30,000 to go solar. Luckily, the federal government and the state government both offer tax incentives and other benefits to homeowners who convert to clean energy. Below are the most appealing incentives for going solar available in Alabama.
|Alabama Solar Incentive||How it Affects the Cost of Solar Panels in Alabama|
|Property Tax Exemption||Alabama’s Property Tax Exemption for Renewable Energy Facilities ensures that, although the value of your home will rise after installing solar, your property taxes won’t go up with the increased value.|
|Sales Tax Abatement||Alabama’s Sales Tax Abatement for Renewable Energy Facilities allows homeowners to pay less sales tax when purchasing solar equipment.|
|Net Metering||Through net metering programs, homeowners can receive credits from their utility company for any excess power their panels produce. Alabama power companies are not required to provide these programs, but you can check with your utility to see if it offers net metering. Learn More|
|Local Solar Rebates & Incentives||We recommend checking for any additional incentives. Some solar-friendly cities provide rebates and other ways for homeowners to save money on clean energy.|
|Federal Solar Tax Credit||The solar investment tax credit (ITC) is applied to any federal income tax you owe and is valued at 26% of your total system cost. In Alabama, where the typical system totals $28,175, that’s a credit of $7,326, bringing the effective total down to $20,850.|
Best Solar Panel Brands and Installed Solar System Costs in 2022
Alabama residents will have their fair share of solar equipment brands to choose from when going solar. The table below provides some relative pricing for the best solar panel brands available in the Yellowhammer State. This table should help you figure out which brands are most likely to fit within your budget.
|Solar Panel Brand||Average Cost Per Watt ($-$$$$$)|
People Also Ask
EcoWatch FAQ: Solar Panel Cost Alabama
At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Alabama residents. Below are some of the questions we see most often, along with our responses.
The average homeowner in Alabama needs an 11.5-kW system to offset electricity costs entirely. At a typical cost of $2.44 per watt, that’s a standard total of around $28,175 before the federal tax credit or $20,850 after the credit.
With that being said, your total can be significantly more or less expensive. Your required system size is based on many factors, including your home size, the direction your roof faces, your average monthly energy bills, shading on your property, and much more. The only way to get an accurate quote for going solar is to have a reputable solar company assess your home and create a customized estimate.
Yes, solar panels boost property value in Alabama. According to estimates from research done by Zillow, the typical value increase is about 4.1% from installing solar.1 With average home prices in Alabama of $189,976 at the time of publication, that’s a typical value bump of $7,789.2 The bump in value can be even more significant in densely populated areas, like Birmingham and Montgomery.
It’s crucial to understand that this value increase will only be enjoyed if you buy your PV system with a cash purchase or via a solar loan. Leases and power purchase agreements (PPAs) will not bump up your home value.
Solar leasing often seems appealing because of the no-money-down option, but you’ll pay a monthly fee and miss out on many of the benefits of going solar. Most notably, you won’t be able to take advantage of the federal tax credit — an average of $7,326 in Alabama — or the boost to property value — an average of $7,789 in AL. The state incentives aren’t available with a solar lease, and leases typically save you less in the long run on your electricity bills.
You might see some solar panel installation companies advertising “free solar panels,” but panels are never really free. These companies are likely using this marketing tactic to get you to sign a solar lease or power purchase agreement (PPA). These options are far less beneficial than purchases and solar loans.
With that being said, solar panel systems pay for themselves in Alabama over time. Considering the long-term savings when buying or financing your solar system, you can consider the equipment free.
It is possible to eliminate your electric bills with a solar energy system in Alabama, but it will be more difficult here than in many other states. This is due to net metering not being mandated by the Alabama Public Service Commission, the policies being set by power companies, and the above-average electricity rates.
However, if your roof is large enough to support the system size you need and you couple your panels with solar batteries for backup power, it is possible to bring your energy costs down to $0 per month in Alabama.
This question is impossible to answer accurately without a complete property assessment. The system size you need is dependent on many things, including the size and energy efficiency of your home, your average monthly energy consumption, shading on your property, the direction your roof faces, and much more. You’ll have to have a reputable solar installer assess your property and provide a customized estimate to determine what size system you need.
With that being said, the average system size required in Alabama to offset energy costs is 11.5 kilowatts.