Solar Panel Cost Guide in Bessemer, AL (Sep 2022)

  • Bessemer Solar Installation Cost: $15,624
  • 25-Year Savings: $31,949
  • Payback Period: 8.2 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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Average Cost of Solar Panels in Bessemer

We break down average solar pricing in Bessemer.

The national average cost of solar panels is $2.66 per watt, but in Bessemer it's $2 per watt. To account for the typical energy needs of the average home in Bessemer, most homeowners require a 9.1-kilowatt system. Using the figure above, a solar installation costs about $15,624, or $11,562 after the federal solar tax credit of 30% is applied.

Keep in mind that the numbers above are only averages. The price you'll end up paying for solar will differ based on your household energy consumption, the type of solar panels you want, your solar contractor and more. For many homeowners, the upfront investment in solar panels is worth paying. On average Bessemer homeowners see about $20,000 in savings on energy bills over 20 years.

For a free quote from a local solar installer that has been pre-vetted by the EcoWatch team, 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

Putting up solar panels by yourself can be a challenging undertaking, which is why hiring a solar installation company is a good option for many homeowners. Also, companies with a high reputation that cost more upfront could actually save you money in the long run because of their warranties, repair services and expert design.

If you'd like to switch to solar energy but still aren't certain which solar system company to go with, here are our recommendations for providers nearby:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Technology

The Green Panel

★★★★★
4.5

  • 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

Though the average cost of solar panels in Bessemer is $15,624, your final cost may differ. There are several factors that can have a major impact on the cost of a residential solar panel installation. Below are some of the more crucial things to take into consideration.

Solar Equipment Size

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. There are many different solar panel brands and the one you pick also changes the cost. In many cases, the brands that have better efficiency tend to also be more expensive. Additionally, the type of equipment you want to install can affect your total cost. If you only need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.

Solar Financing Terms

Most solar companies in Bessemer offer solar loans, which reduce your upfront costs of installing solar panels. It's a good idea to factor the interest you'll pay in your final cost estimate. If you can afford to pay a higher down payment, you can reduce your total costs and how long it'll take to pay off the loan.

Solar Panel Installation Company

Finally, the company you get to install your solar panel system can influence the cost. Bessemer's solar companies all have different labor costs and add varying upcharges to equipment. Additionally, some companies in Bessemer know more about local solar incentives and can help you take advantage of additional rebates or tax exemptions. However, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you more money in the long run.

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

Solar Incentives in Bessemer

Name ITC
Type Tax Incentive
Incentive Amount 26% of installation cost
Website Visit here

Name Local Option- Property Tax Exemption for Renewable Energy Faclities
Website Visit here
More Info Click here

How to Save on Solar Panels

Since the kind of solar panels and the installer you choose considerably impacts your costs and your system's efficiency, production, and durability, it's important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:

  • Warranty: A quality company stands out from other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
  • Reputation: Make sure your solar company has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by previous customers and solar experts like the EcoWatch team.
  • Contract: Before signing a contract with a solar company, make sure to read it through completely so you understand the terms. Also, ask questions if you're not certain about some of the terms, such as what the warranty covers and if there are any guarantees about energy production.
  • Solar Panel Brands: Homeowners will have different preferences for panels based on their locations and how much efficiency they need. Even though there are many options for which kind of solar panel you can get, not every company will have the exact one you may want or need, so make sure you peruse their list of offerings before deciding.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Technology

The Green Panel

★★★★★
4.5

  • 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?

This is a hard question to answer precisely, because the cost depends on a variety of factors. Broadly speaking, it costs about $12,250 for a 5-kW system and $24,500 for a 10-kW system after the ITC is applied. It will cost more if you want other solar equipment or more efficient panels, or if you have above-average energy needs. On the flip side, you can spend less if you choose a smaller solar panel system or cheaper solar panels.

Should I lease or buy solar panels in Bessemer?

Leasing solar panels can be an option if you can't pay upfront or get a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your home value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most financial benefits from going solar.

Does Bessemer have a net metering program?

Each state has some form of net metering programs except Tennessee, South Dakota and Alabama currently. Some states allow you to sell power back to the grid, but others just offer you credit toward your future power bills.

How many solar panels should I get to power my home?

To figure out what solar panel system size you need, you should find out how much energy your home uses and how much sunlight your home gets. For a general estimate, however, since each panel can usually produce about 250 to 400 watt-hours per hour, the average home will need 20 to 35 panels.

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.

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