Solar Panel Cost Guide in Birmingham, AL (2025 Update)
- Birmingham Solar Installation Cost: $22,165
- 25-Year Savings: $34,539
- Payback Period: 11.1 Years
See cost of a solar system near you:
Please enter a valid 5-digit zip code!
Why you can trust EcoWatch
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.Using this figure, a typical 9.1-kW system would cost about $22,165 before the 0 federal solar tax credit is applied.
The prices above are just estimates to give you an idea of how much a solar energy system could cost. The true cost of installing solar panels can vary quite a bit based on several factors, such as how many panels you need, your energy usage and what installation company you go with.Despite the high upfront cost, the average Birmingham homeowner can save about $21,000 on their electricity bills over 20 years, which is one of the positives of solar.
To calculate your potential savings and connect with a local solar expert, 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 decide to go with a solar installation company since putting up solar panels yourself can be a difficult project. Solar warranties and repairs are usually included in the cost of installation when you opt for a solar company as well, which can save you more money after your initial investment.
There are several licensed solar professionals that can install solar panels for you. Here are our suggestions:
See all of the solar companies in Birmingham
Factors that Affect Solar Panel Costs in Birmingham
Cost is usually one of the most important factors for homeowners considering investing in solar. There are a few key factors that will push your cost above or below the average in Birmingham: solar equipment and system size, financing options and the solar installation company you choose. We’ll go over each of these briefly below.
Solar Equipment
When it comes to estimating the price of a solar energy 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 primarily based on your home’s energy usage, which you can figure out by looking at past power bills. Your overall cost can increase by about $3,490 for each additional kilowatt you need.The kind of solar equipment you choose can bring your price up or down by thousands or even tens of thousands of dollars. If you get the most efficient solar panel brands, you’ll end up paying more upfront than if you opted for the most affordable panels. On the other hand, more efficient panels could save you more in the long run on your electric bills. Additionally, add-on products, like solar batteries, can bump up your total well above the Birmingham average.
Solar Financing Terms
Many homeowners find the average cost of solar in Birmingham to be too costly, even if the investment pays off over time. Fortunately, nearly every solar installer in the area provides financing options. Solar loans greatly decrease upfront costs in most cases, but they also lead to paying more over time because of interest.It’s wise to add the interest you’ll pay in your final cost estimate. If you can afford to put more money down upfront, you can reduce your total costs and how long it’ll take to pay back the loan.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Birmingham is the company you hire to install your solar panel system. As with choosing a company to install new cabinets, for example, there’s no shortage of solar installers that provide a range of services at different price points.You may come across national solar installers that have lower prices because of their bigger brand name and access to bulk pricing, or you might see small, local installation companies offering deals or specials to compete with those major players.
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
The company that does your solar panel installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Since selecting a company can be a challenge, we have some tips to help you, such as:
- Warranty: Companies typically offer different kinds of warranties that provide different kinds of coverage. A 25-year, all-inclusive warranty is the gold standard.
- Reputation: Long-running companies likely have a good reputation. This is important because it ensures that it will not only see your solar project through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
- Contract: When reading over your solar company’s contract, ask questions about any terms you’re not sure of and make sure you understand what happens in scenarios like a system component breaking or the company going out of business.
- Installation Process: Get detailed information from your solar installer about the installation process and what to expect, including when the site survey will be completed and how long it will take.
EcoWatch's Birmingham, AL Solar Cost FAQs
How much does it cost to install solar panels in Birmingham?
This is a tough question to answer precisely, because the cost depends on many factors. Broadly speaking, it costs about $17,450 for a 5-kW system and $34,900 for a 10-kW system after the ITC is applied. It will cost more if you want extra solar equipment or more efficient panels, or if you have above-average energy usage. On the other hand, you can spend less if you choose a smaller solar panel system or less efficient solar panels.
What other factors should I consider in addition to cost when buying solar panels?
Cost is without a doubt one of the most important things to keep in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
Can solar panels significantly reduce my energy bills?
Solar panels can potentially eliminate your electricity bills depending on where you’re located 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?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher amount 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.