Solar Panel Cost Guide in Homewood, AL (2023 Update)
- Homewood Solar Installation Cost: $15,624
- 25-Year Savings: $35,704
- Payback Period: 7.6 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Homewood
Let's have a look at the average cost of solar panels in Homewood.
The national average cost of solar panels is $2.66 per watt, but in Homewood it's 2.45 per watt. The average solar panel system size in Homewood is around 9.1 kilowatts, meaning a cost of about $15,624 for a solar installation, or $22,342 before the 30% federal solar tax credit is applied.
These figures are only averages, and the cost of going solar for you will look different based on the amount of energy your home requires and what company you go with. For many homeowners, the upfront cost of solar power is worth paying. On average homeowners in Homewood see about $21,000 in savings on utility bills over 20 years.
To get a free quote from a highly rated solar installation company in Homewood, you can click the button below.
Solar savings over time in Homewood
| Year | Return on Investment |
|---|---|
| 1 years | $-13,571 |
| 3 years | $-9,464 |
| 5 years | $-5,358 |
| 7 years | $-1,252 |
| 9 years | $2,854 |
| 11 years | $6,961 |
| 13 years | $11,067 |
| 15 years | $15,173 |
| 17 years | $19,279 |
| 19 years | $23,385 |
| 21 years | $27,492 |
| 23 years | $31,598 |
| 25 years | $35,704 |
Top Solar Installers in Homewood
When switching to solar energy, many homeowners decide to use a solar installation company since installing 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 too, which can save you more money over time.
You can work with a local solar installer to get a free estimate on the cost of solar panels for your home. Here are some near you:
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
Although the average cost of a solar system in Homewood is $15,624, your actual cost may differ. There are many factors that can have a sizable impact on the cost of a residential solar panel installation. Below are some of the more crucial things to consider.
Solar Equipment
One of the most important factors to consider when it comes to the cost of adopting solar energy is the size of the solar system, which is measured in kilowatts (kW). The more power your household consumes, the larger your system will likely need to be. You can expect to pay about $2,450 per kilowatt in Homewood. The brand of solar panels and equipment you choose is another factor that will largely impact costs. Solar panels that are more efficient, like monocrystalline panels, tend to come at a higher price. Furthermore, solar equipment goes beyond just the solar panels themselves. You'll also need to make decisions about the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when researching a solar system that's in your budget.
Solar Financing Terms
If paying for solar panels out of pocket is too expensive, solar loans are an affordable choice because they decrease your upfront costs and let you pay for your system over a term of, on average, between five and seven years. It's a good idea to add the interest you'll pay in your final cost estimate. If you can afford to pay a larger down payment, you can reduce your total costs and how long it'll take to pay back the loan.
Solar Panel Installation Company
The final major cost factor you should consider is the installer you choose. Given the massive popularity of clean energy solutions in Homewood, you'll have many options to choose from, but each comes at varying price points for labor and equipment. Some companies only sell products with high efficiency and therefore a higher price point — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally cost more. It's best to do some research and find a company that offers the products, warranties and services you want and also is within your budget.
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
There are a lot of solar installers to choose from, all of which offer different warranties, solar panel models and price points. To help you find the right company for you, here are some tips to keep in mind:
- Installation Process: One of the most important things to understand when adopting solar energy is the installation process itself. Be sure to clarify any details you should know with your solar installer, such as what permits you should acquire and what the project timeline is.
- Warranty: Warranties that provide coverage for replacement parts and repairs over a long period of time such as 25 years are the gold standard in the business, and offering that kind of warranty is one sign of a good company.
- Contract: When looking over your solar installer's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios such as a system part breaking or the company going out of business.
- Solar Panel Brands: The kind of solar panel you want to install plays a part in which company you should choose, since different companies provide different panels.
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 tough question to answer exactly, 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 additional solar equipment or higher quality panels, or if you have higher-than-average energy needs. On the flip side, you can spend less if you choose a smaller solar panel system or less efficient solar panels.
Should I lease or buy solar panels in Homewood?
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 tax rebates and credits and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
Is making the switch to solar worth it?
Solar panels can be a great investment for lots of homeowners, but they might not be worth it for everyone. If your home doesn't get a lot of direct sunlight and/or your power bills are already pretty low, solar panels might not be for you.
What solar power system size is right for my home?
The exact number of solar panels you need depends on your household energy needs and the average daily sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to get between 20 and 35 panels to account for their typical energy usage.
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.