Solar Panel Cost Guide in Pelham, AL (2023 Update)
- Pelham Solar Installation Cost: $15,493
- 25-Year Savings: $34,571
- Payback Period: 7.7 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Pelham
See how much it might cost to switch to solar power in Pelham.
The national average cost of solar panels is $2.66 per watt, but in Pelham it's 2.45 per watt. Using this figure, a typical 9.0-kW system would cost about $15,486 before the 30% federal solar tax credit is applied.
Remember that the numbers above are only averages. The price you'll end up paying for solar may look quite different based on your household energy needs, the type of equipment you want, your solar contractor and more. For most homeowners, the upfront cost of solar power is worth paying. On average Pelham homeowners see about $21,000 in savings on energy bills over 20 years.
To calculate your potential savings and connect with a local solar expert, click the button below.
Solar savings over time in Pelham
| Year | Return on Investment |
|---|---|
| 1 years | $-13,646 |
| 3 years | $-9,951 |
| 5 years | $-6,255 |
| 7 years | $-2,560 |
| 9 years | $1,135 |
| 11 years | $4,830 |
| 13 years | $8,525 |
| 15 years | $12,220 |
| 17 years | $15,915 |
| 19 years | $19,611 |
| 21 years | $23,306 |
| 23 years | $27,001 |
| 25 years | $30,696 |
Top Solar Installers in Pelham
DIY solar panel installation is a choice some homeowners opt for, but it's an undertaking that can be a pain. Going with a solar company can make your swap to solar power much easier. Some solar installers, especially local ones, can help you better understand incentives in Pelham, therefore optimizing your ROI.
If you're on the hunt for a solar installer in Pelham, we've organized a list of our top suggestions here:
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 Pelham
Factors that Affect Solar Panel Costs in Pelham
Cost is usually one of the most important factors for homeowners wanting to invest in solar. There are a few major factors that will push your cost above or below the average in Pelham: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
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 energy your household uses, the larger your system will likely need to be. You can expect to pay around $2,450 per kilowatt in Pelham. Some solar brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer higher efficiency. In a city like Pelham, where sunlight is abundant, efficiency can quickly pay off. Plus, if you have a small roof or limited 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
Many homeowners find the average cost of solar in Pelham to be prohibitively expensive, even if the investment pays off over time. Thankfully, almost every solar installer in the area offers financing options. Solar loans remarkably 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 total 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 finding a solar loan with a low interest rate could reduce your costs significantly.
Solar Panel Installation Company
The solar company you go with to handle your switch to solar energy can have an effect on your total costs. There are about 3 solar panel companies operating throughout Pelham, and each can charge varying amounts for labor and equipment. Additionally, some companies in Pelham are more knowledgeable about local solar incentives and can help you make good use of additional rebates or tax exemptions. However, they may charge more for that service. 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 | $2.55 | $10,702 | $22,549 | 8.0 years |
| 8 kW | $2.50 | $13,994 | $30,340 | 7.9 years |
| 10 kW | $2.45 | $17,150 | $38,268 | 7.7 years |
| 12 kW | $2.40 | $20,168 | $46,333 | 7.6 years |
| 14 kW | $2.35 | $23,050 | $54,535 | 7.4 years |
| 16 kW | $2.30 | $25,794 | $62,875 | 7.3 years |
| 18 kW | $2.25 | $28,400 | $71,351 | 7.1 years |
| 20 kW | $2.21 | $30,870 | $79,965 | 7.0 years |
How to Save on Solar Panels
There are a lot of companies to choose from in Pelham, and some homeowners feel overwhelmed considering their options. Choosing the right company for you can be difficult, so here are some tips to help you decide:
- Contract: Look through the contract terms closely to make sure you understand the cost breakdown, completion timeline rebates and warranties.
- Warranty: Warranties that provide coverage for replacement parts and repairs over a long period of time such as 25 years are the best you can get in the business, and offering such a warranty is one indication of a good company.
- Reputation: Make sure your solar panel installer has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by past customers and solar experts like EcoWatch.
- Solar Panel Brands: Different companies will offer different brands and kinds of panels. If you know you want a specific brand, make sure the solar panel company you're considering has it.
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 Pelham, AL Solar Cost FAQs
What is the average cost of installing solar panels in Pelham?
The average cost of solar panels in Pelham is about $12,250 for a 5-kW system and $24,500 for a 10-kW system before the ITC, but the real cost will depend on certain factors such as the model of solar panels you want, what size system you need and how much energy you consume.
Should I lease or buy solar panels in Pelham?
Leasing solar panels can be an option if you are unable to pay upfront or secure a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your property value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most financial benefits from going solar.
How will having solar panels impact my home value?
Buying or financing solar panels for your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Pelham is currently $274,815, so you can expect a value of about $11,267 more than houses without a solar system. The exact figures will vary, but most experts agree that installing solar panels in Pelham is a fruitful investment.
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 take a 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 cover 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.