Solar Panel Cost Guide in Birmingham, AL (2024 Update)
- Birmingham Solar Installation Cost: $22,165
- 25-Year Savings: $34,539
- Payback Period: 11.1 Years
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Average Cost of Solar Panels in Birmingham
Here’s how much it might cost to install solar panels in Birmingham.
The national average cost of solar panels is $2.66 per watt, but in Birmingham it’s 3 per watt.To account for the typical energy needs of the average home in Birmingham, most homeowners require a 9.1-kilowatt system. Using the figure above, a solar installation costs around $22,165, or $31,696 before the federal solar tax credit of 0 is applied.
Keep in mind that the numbers above are only averages. The price you’ll pay for solar will differ based on your household energy use, the type of solar system you choose, your solar contractor and more.Many homeowners find going solar is a sound investment. The average homeowner in Birmingham can save around $21,000 on their energy bills over 20 years.
To receive a free quote from a top solar installer in Birmingham, you can click the button below.
Solar savings over time in Birmingham
| Year | Return on Investment |
|---|---|
| 1 years | $-20,317 |
| 3 years | $-16,622 |
| 5 years | $-12,927 |
| 7 years | $-9,232 |
| 9 years | $-5,537 |
| 11 years | $-1,841 |
| 13 years | $1,854 |
| 15 years | $5,549 |
| 17 years | $9,244 |
| 19 years | $12,939 |
| 21 years | $16,634 |
| 23 years | $20,329 |
| 25 years | $24,025 |
Top Solar Installers in Birmingham
When going solar, many homeowners opt to hire a solar company since putting up a solar system yourself can be a challenging project. Plus, warranties and repairs from your solar panel company can protect your investment and reduce the cost of maintenance in the long run.
There are various licensed solar professionals that can install solar panels for you. Here are our suggestions:
Best National Provider
SunPower
- 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
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 Birmingham
Factors that Affect Solar Panel Costs in Birmingham
For many Birmingham homeowners, the decision to install solar panels comes down to cost. However, the range of solar installation costs can be quite wide in Birmingham, with typical prices between $20,000 to $40,000. There are several factors that considerably influence the price you’ll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the price of a solar system in Birmingham, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are largely based on your home’s energy usage, which you can determine by looking at past energy bills. Your total cost can increase by around $3,490 for each additional kilowatt you need.The type of solar panels and equipment you choose is another factor that will considerably affect costs. Solar panels that are more efficient, like monocrystalline panels, tend to come at a higher price. Plus, solar equipment goes beyond just the solar panels themselves. You’ll also need to consider 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 into a solar system that falls within your budget.
Solar Financing Terms
Many homeowners find the average cost of solar in Birmingham to be prohibitively steep, even if the investment pays off over time. Fortunately, almost every solar company in the area offers financing options. Solar loans drastically decrease upfront costs for most homeowners, but they also result in a higher cost over time because of interest.You’ll have to consider the long-term cost of financing options, including the amount of interest you’ll pay over the length of the loan. If you’re only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or getting a solar loan with a low APR could reduce your costs considerably.
Solar Panel Installation Company
A final consideration when trying to evaluate the cost of solar for your home or business in Birmingham is the company you choose to install your PV system. As with choosing a company to install new cabinets, for example, there are plenty of solar installers that offer a range of services for different budgets.You may see national solar installers that have lower prices due to their bigger brand name and access to bulk pricing, or you might see small, local installation companies offering deals or promotions to compete with those larger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.63 | $15,244 | $17,887 | 11.5 years |
| 8 kW | $3.56 | $19,935 | $24,240 | 11.3 years |
| 10 kW | $3.49 | $24,430 | $30,789 | 11.1 years |
| 12 kW | $3.42 | $28,730 | $37,533 | 10.8 years |
| 14 kW | $3.35 | $32,834 | $44,472 | 10.6 years |
| 16 kW | $3.28 | $36,743 | $51,607 | 10.4 years |
| 18 kW | $3.21 | $40,456 | $58,938 | 10.2 years |
| 20 kW | $3.14 | $43,974 | $66,464 | 10.0 years |
How to Save on Solar Panels
Since the brand 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 tips to keep in mind to help with your decision:
- Warranty: Each company may offer different types of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a respected certification organization for renewable energy professionals. If your solar panel installer is NABCEP-certified, it likely has a good reputation and is qualified to do the job well. Another way you can verify your installer’s reputation is by reading reviews.
- Contract: Before you sign a contract with a solar company, make sure you read it through fully so you understand the terms. Also, ask questions if you’re not sure about some of the terms, such as what to do if a component breaks or malfunctions and what services you can expect from them.
- Installation Process: When making the switch to solar, it’s important to keep an open line of communication with your solar panel installer. Confirm that you understand how the installation process works and the project timeline.
Best National Provider
SunPower
- 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
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 Birmingham, AL Solar Cost FAQs
What is the average cost of installing solar panels in Birmingham?
The average cost of solar panels in Birmingham is about $17,450 for a 5-kW system and $34,900 for a 10-kW system before the ITC, but the real cost will depend on things like the type of solar panels you want, what size system you need and how much energy you consume.
What other factors should I consider other than cost when buying solar panels?
Cost is definitely one of the most important factors you should consider when buying solar panels, but other important factors include efficiency, durability, and quality.
Can solar panels significantly reduce my power bills?
Solar panels can potentially eliminate your electricity bills depending on your location and how much sunlight your home gets. Even if it doesn’t get rid of them completely, you can save a lot of money on your bills, about $1,104.38 per year.
How often do you have to replace solar panels?
Even though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is how much energy they produce will have decreased significantly after that point. You can choose to replace them after having them for that long or you can continue to use them at a lower efficiency.
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.