Solar Panel Cost Guide in Bessemer, AL (2023 Update)
- Bessemer Solar Installation Cost: $15,624
- 25-Year Savings: $31,949
- Payback Period: 8.2 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Bessemer
We break down average solar pricing in Bessemer.
The average cost of solar panels in Bessemer is 2.45 per watt. The average Bessemer homeowner needs a 9.1-kilowatt system, which would cost about $15,624 with the federal tax credit, or $22,342 before the 30% tax credit is applied.
These figures are just estimates, and the cost of going solar for you will vary based on the amount of energy your home requires and what company you want to go with. With typical savings of about $20,000 on power bills over 20 years, many homeowners in Bessemer find installing solar panels has a decent ROI.
To see your potential ROI and connect with a local solar company, click the button below.
Solar savings over time in Bessemer
| Year | Return on Investment |
|---|---|
| 1 years | $-13,721 |
| 3 years | $-9,915 |
| 5 years | $-6,109 |
| 7 years | $-2,303 |
| 9 years | $1,502 |
| 11 years | $5,308 |
| 13 years | $9,114 |
| 15 years | $12,920 |
| 17 years | $16,725 |
| 19 years | $20,531 |
| 21 years | $24,337 |
| 23 years | $28,143 |
| 25 years | $31,949 |
Top Solar Installers in Bessemer
When switching to solar energy, many homeowners choose to use a solar company since putting up a solar system yourself can be a difficult project. A solar company can also help save you money in the long run by providing warranties, repairs and part replacements.
Working with a professional solar installer can help you make the most of your investment in solar. Here are our recommendations:
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
See all of the solar companies in Bessemer
Factors that Affect Solar Panel Costs in Bessemer
The cost of installing a solar system in Bessemer can vary by more than $10,000 from home to home. Your actual cost is dependent on several factors. The most significant one is the size of the system your household needs, and other factors include equipment choices, financing options and the solar company you choose.
Solar Equipment
When it comes to estimating the price of a solar energy system in Bessemer, one of the most crucial factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are primarily based on your home's energy consumption, which you can gauge by looking at past power bills. Your total cost can increase by around $2,450 for each additional kilowatt you need. The kind of solar panels and equipment you want is another factor that will significantly affect costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to be more pricey. Furthermore, solar equipment goes beyond just the solar panels themselves. You'll also need to decide on the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when looking for a solar system that's in your budget.
Solar Financing Terms
For some homeowners, paying for a solar system out of pocket can be challenging. Solar loans are provided by most installers in Bessemer, which can lower, or in some cases eliminate, your upfront costs to make solar more accessible. When considering your overall cost, you should also calculate the interest you'll pay if you choose to go with a solar loan. Also, paying more upfront can lower the total interest paid over time.
Solar Panel Installation Company
The solar panel installation company you choose will play a role in your total cost to adopt solar power. Different companies will charge different amounts for the equipment and labor. Larger national companies generally have lower costs, but some local companies compete with them by offering sales and discounts. While the smaller companies might not have specific equipment options like Tesla Powerwall batteries or additional services like electric vehicle charger installation, they might be cheaper overall.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.55 | $10,702 | $20,624 | 8.5 years |
| 8 kW | $2.50 | $13,994 | $27,772 | 8.4 years |
| 10 kW | $2.45 | $17,150 | $35,059 | 8.2 years |
| 12 kW | $2.40 | $20,168 | $42,482 | 8.0 years |
| 14 kW | $2.35 | $23,050 | $50,042 | 7.9 years |
| 16 kW | $2.30 | $25,794 | $57,740 | 7.7 years |
| 18 kW | $2.25 | $28,400 | $65,575 | 7.6 years |
| 20 kW | $2.21 | $30,870 | $73,547 | 7.4 years |
How to Save on Solar Panels
Since the type of solar panels and the installer you choose has an impact on your costs and your system's durability and efficiency, it's important to pick the right ones for you. Here are some things to keep in mind to help with your decision:
- Contract: It's important to look over your solar installer's contract fully to understand what services they will provide, what the warranty covers and what expectations you should have about the project timeline.
- Warranty: A comprehensive, long-term warranty can help keep your solar system running smoothly and save you money on part replacement and repairs.
- Solar Panel Brands: Different companies will carry various brands and models of panels. If you prefer a specific brand, make sure the solar panel company you're considering has it.
- Reputation: Make sure your solar company has a good reputation by confirming it has certifications and licenses, checking its work history and reading reviews by previous customers and solar experts like the EcoWatch team.
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
EcoWatch's Bessemer, AL Solar Cost FAQs
What is the average cost of installing solar panels in Bessemer?
The average cost of solar panels in Bessemer is about $12,250 for a 5-kW system and $24,500 for a 10-kW system before the ITC, but the actual cost will depend on stuff such as the type of solar panels you want, what size system you need and how much energy you use.
Is it better to lease or buy solar panels in Bessemer?
Leasing solar panels can be an appealing choice, as it commonly comes with low or $0 upfront payments. The drawback is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
Can you sell solar power back to the grid in Bessemer?
Most states have net metering programs of some kind. Through these, you can receive compensation for the extra power your system generates or or receive credits to put toward future electricity bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
How long do solar panels last in Bessemer?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.