Solar Panel Cost Guide in Madison, AL (2024 Update)
- Madison Solar Installation Cost: $22,956
- 25-Year Savings: $11,206
- Payback Period: 21.0 Years
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Average Cost of Solar Panels in Madison
We break down average solar pricing in Madison.
The average cost of a solar system in Madison is 3 per watt.To cover the typical energy needs of the average home in Madison, most homeowners require a 9.4-kilowatt system. Using the per-watt figure above, a solar installation costs about $22,956, or $32,827 before the federal solar tax credit of 0 is applied.
These figures are only averages, and the cost of going solar for you will most likely differ based on the amount of energy your home requires and what company you choose to go with.But, once you've paid the initial cost of installation, the return on investment for most homeowners is typically good, with a net average savings of about $12,000 over 20 years on energy bills.
For a customized quote from a local solar company that has been pre-vetted by EcoWatch, click the button below.
Solar savings over time in Madison
| Year | Return on Investment |
|---|---|
| 1 years | $-21,600 |
| 3 years | $-18,887 |
| 5 years | $-16,174 |
| 7 years | $-13,461 |
| 9 years | $-10,748 |
| 11 years | $-8,035 |
| 13 years | $-5,322 |
| 15 years | $-2,610 |
| 17 years | $103 |
| 19 years | $2,816 |
| 21 years | $5,529 |
| 23 years | $8,242 |
| 25 years | $10,955 |
Top Solar Installers in Madison
Trying to install solar panels yourself can be a time-consuming undertaking, which is why using a solar installation company is a good option for many homeowners. The payback period on an investment in solar panels will vary based on factors like your location and energy usage, but going with a solar company can help you reach a break-even point sooner. Your provider will be able to help you get the most out of incentives available in your area.
Working with a licensed solar company can make going solar easier. Here are our recommendations:
See all of the solar companies in Madison
Factors that Affect Solar Panel Costs in Madison
For many Madison homeowners, the decision to install solar panels depends on cost. However, the range of solar installation costs can be quite wide in Madison, 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
The cost of solar panels varies by thousands of dollars due to a variety of factors. One of the key factors is the system size, which is measured in kilowatts (kW). Solar power systems with better efficiency or power production require 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 $3,490.There are many different solar panel brands and the one you pick also changes the cost. Typically, the brands that have better efficiency tend to also be more expensive. In addition, 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
For some homeowners, paying for solar panels out of pocket can be financially overwhelming. Solar loans are provided by most installers in Madison, which can bring down, or in some cases totally eliminate, your upfront costs to make solar more affordable.You’ll have to consider the long-term cost of financing options, including the total interest you’ll pay over the length of the loan. If you can only 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 securing a solar loan with a low APR could reduce your costs remarkably.
Solar Panel Installation Company
A final consideration when trying to figure out the cost of solar for your home or business in Madison is the company you choose to install your solar system. Similar to choosing a company to build a deck or pool, for instance, you’ll have many options for solar installers that provide a range of services for different budgets.Additionally, some companies in Madison are more knowledgeable about local solar incentives and can help you make good use of additional rebates or tax exemptions. Though, 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 | $3.63 | $15,244 | $2,201 | 21.8 years |
| 8 kW | $3.56 | $19,935 | $3,325 | 21.4 years |
| 10 kW | $3.49 | $24,430 | $4,645 | 21.0 years |
| 12 kW | $3.42 | $28,730 | $6,161 | 20.6 years |
| 14 kW | $3.35 | $32,834 | $7,871 | 20.2 years |
| 16 kW | $3.28 | $36,743 | $9,778 | 19.7 years |
| 18 kW | $3.21 | $40,456 | $11,879 | 19.3 years |
| 20 kW | $3.14 | $43,974 | $14,176 | 18.9 years |
How to Save on Solar Panels
There are a lot of companies to choose from in Madison, and some homeowners feel overwhelmed considering their options. Choosing the right company for you can be tough, so here are some tips to help you decide:
- Warranty: Companies typically offer different kinds of warranties that provide different kinds of coverage. A 25-year, all-inclusive warranty is the gold standard.
- Installation Process: When making the switch to solar power, it’s important to maintain an open line of communication with your solar company. Confirm that you understand how the installation process works and the completion timeline.
- Contract: Review the contract terms closely to make sure you understand the total cost, project timeline rebates and warranties.
- Reputation: Your solar installer should have a sound reputation as a company and have demonstrated expertise in the field. A couple of ways to check this are to look for whether a company has technicians that hold a certification from the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from previous customers.
EcoWatch's Madison, AL Solar Cost FAQs
How much does it cost to install solar panels in Madison?
The average cost of solar panels in Madison is about $17,450 for a 5-kW system and $34,900 for a 10-kW system before the ITC, but the actual cost will depend on certain factors like the kind of solar panels you want, what size system you need and how much energy you use.
What other factors should I consider aside from cost when buying solar panels?
Cost is without a doubt one of the most important things to bear in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
Can you sell solar power back to the grid in Madison?
Most states have net metering programs of some kind. Through these, you can either receive compensation for the extra power your system generates or or receive credits to put toward future electricity bills. Currently there are just three states that don’t have any net metering laws: Alabama, Tennessee and South Dakota.
How often do you have to replace solar panels?
On average, solar panels can last 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.
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.