Solar Panel Cost Guide in Homewood, AL (2023 Update)
- Homewood Solar Installation Cost: $15,627
- 25-Year Savings: $35,701
- Payback Period: 7.6 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Homewood
We go over average solar pricing in Homewood.
The average cost of solar panels in Homewood is 2.45 per watt. Using this figure, a typical 9.1-kW system would cost about $15,624 before the 30% federal solar tax credit is applied.
Keep in mind that the numbers above are only averages. The price you'll pay for solar may look quite different based on your household energy use, the type of solar panels you want to get, your solar contractor and more. Many homeowners find adopting solar power is a rewarding investment. The average homeowner in Homewood can save about $21,000 on their energy bills over 20 years.
Click the button below to get connected to a reputable solar installer in your area for a custom estimate.
Solar savings over time in Homewood
| Year | Return on Investment |
|---|---|
| 1 years | $-15,456 |
| 3 years | $-15,114 |
| 5 years | $-14,771 |
| 7 years | $-14,429 |
| 9 years | $-14,087 |
| 11 years | $-13,745 |
| 13 years | $-13,403 |
| 15 years | $-13,061 |
| 17 years | $-12,718 |
| 19 years | $-12,376 |
| 21 years | $-12,034 |
| 23 years | $-11,692 |
| 25 years | $-11,350 |
Top Solar Installers in Homewood
Although you can install solar panels yourself, it requires extra effort and know-how. For that reason, the majority of homeowners choose a solar panel installer. Because solar panels are exposed to the elements every day, warranties and repairs from your solar installer can help you get the most out of your investment in solar panels by avoiding potential costs down the line.
If you'd like to go solar but still aren't sure which solar company to go with, here are our recommendations for providers in Homewood:
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 Homewood
Factors that Affect Solar Panel Costs in Homewood
Cost is usually one of the most important factors for homeowners who are considering investing in solar. There are a few major factors that will push your cost above or below the average in Homewood: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to a few different factors. One of the main factors is the system size, which is measured in kilowatts (kW). Solar power systems that have better efficiency or power production use better technology and/or more equipment, both of which can increase costs. For each additional kilowatt you need, your cost can go up by about $2,450. Some solar panel brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer better efficiency. In a city like Homewood, where sunlight is abundant, efficiency can quickly pay off. Also, if you have a small roof or you don't have a lot of space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
Solar panels can save you money on energy bills over many years, but they can also be a significant investment. That's why many Homewood homeowners opt to finance their solar panel systems to make paying for solar more affordable. Though solar loans make going solar more accessible for Homewood homeowners, they can also raise the total you pay for your system, depending on your interest rate and how long you take to pay off the loan. If you make a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
The solar company you pick will affect your total cost to make the switch to solar energy. Different companies will charge different amounts for the equipment and labor. The company's size can sometimes play the most significant role in the installation costs. Larger national companies, like SunPro and Sunrun, often have lower pricing because of access to more resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or promotion can bring their pricing lower to compete with bigger names.
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 | $23,096 | 7.9 years |
| 8 kW | $2.50 | $13,994 | $31,070 | 7.8 years |
| 10 kW | $2.45 | $17,150 | $39,180 | 7.6 years |
| 12 kW | $2.40 | $20,168 | $47,428 | 7.5 years |
| 14 kW | $2.35 | $23,050 | $55,812 | 7.3 years |
| 16 kW | $2.30 | $25,794 | $64,334 | 7.2 years |
| 18 kW | $2.25 | $28,400 | $72,994 | 7.0 years |
| 20 kW | $2.21 | $30,870 | $81,790 | 6.9 years |
How to Save on Solar Panels
The solar company you go with will affect not only your total costs, but also the types of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are some important things you should take into account, such as:
- 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 cost.
- Solar Panel Brands: Homeowners will have different preferences for panels depending on their locations and energy needs. Even though there are many options for which type of solar panel you can get, not every company will have the exact one you may want or need, so be sure to ask for their list of options before deciding.
- Warranty: Warranties that provide coverage for panel repairs and maintenance over around 25 years are the gold standard in the business, and offering that kind of warranty is one sign of a good company.
- Installation Process: Get detailed information from your solar installer about the installation process and what to expect, such as when the site survey will be completed and what the project timeline is.
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 Homewood, AL Solar Cost FAQs
What is the average cost of installing solar panels in Homewood?
This is a hard question to answer precisely, because the cost depends on a few different factors. Generally 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 extra solar equipment or higher quality panels, or if you have higher-than-average energy usage. Conversely, you can spend less if you go with a smaller solar panel system or less efficient solar panels.
Is cost the most important consideration when buying solar panels?
Cost is definitely one of the most important things to keep in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
How will installing solar panels impact my home value?
Solar panels can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Homewood is currently $292,519, so you can expect a value of about $11,993 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Homewood is a fruitful investment.
How many solar panels do I need to power my home?
To figure out how many solar panels you need, you need to know how much energy your home requires 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 house 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.