Solar Panel Cost Guide in Pelham, AL (2025 Update)
- Pelham Solar Installation Cost: $22,070
- 25-Year Savings: $34,571
- Payback Period: 11.0 Years
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Average Cost of Solar Panels in Pelham
Let’s take a look at the average cost of solar in Pelham.
In Pelham, solar panels cost about 3 per watt on average.To cover the typical energy needs of the average home in Pelham, most homeowners require a 9.0-kilowatt system. Using the per-watt figure above, a solar installation costs about $22,070, or $31,560 before the federal solar tax credit of 0 is applied.
Keep in mind that the numbers above are only averages. The price you’ll end up paying for solar may vary based on your household energy consumption, the type of equipment you want, your solar contractor and more.But, after you've paid the initial cost of installation, the savings for most homeowners is typically fruitful, with a net average savings of about $21,000 over 20 years on energy bills.
For a customized quote from a local solar company that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Pelham
| Year | Return on Investment |
|---|---|
| 1 years | $-20,223 |
| 3 years | $-16,527 |
| 5 years | $-12,832 |
| 7 years | $-9,137 |
| 9 years | $-5,442 |
| 11 years | $-1,747 |
| 13 years | $1,948 |
| 15 years | $5,644 |
| 17 years | $9,339 |
| 19 years | $13,034 |
| 21 years | $16,729 |
| 23 years | $20,424 |
| 25 years | $24,119 |
Top Solar Installers in Pelham
Many homeowners choose to use a solar installation company since trying to install solar panels yourself can be time-consuming. Solar installers provide key benefits that can help you get the most out of your investment, like warranties, monitoring and free repairs.
Working with a professional solar installer can help you make the most of your investment in solar. Here are our recommendations:
See all of the solar companies in Pelham
Factors that Affect Solar Panel Costs in Pelham
The cost of installing a solar system in Pelham can vary by more than $10,000 from home to home. Your actual cost is determined by several factors. The biggest one is your system size, and other factors include equipment choices, financing options and the solar installer you choose.
Solar Equipment
The size of the solar system you need, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, your total will most likely increase by about $3,490. The model of solar panels and equipment you choose is another factor that will considerably affect costs. Solar panels that are more efficient, like monocrystalline panels, tend to cost more. 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 searching for a solar system that falls within your budget.
Solar Financing Terms
If paying for a solar system in cash is too expensive, solar loans are a solid choice because they cut back your upfront costs and allow you to pay for your system over five to seven years on average.When considering your overall cost, you should also calculate the interest you’ll pay if you opt for a solar loan. Also, paying more upfront can lower the total interest paid over time.
Solar Panel Installation Company
Lastly, the company you opt for to install your solar panels can influence the cost. Pelham’s solar companies all have different labor costs and add varying upcharges to equipment. You may notice national solar installers that have lower prices due to their bigger brand name and access to bulk prices, or you might see small, local installation companies offering deals or specials to compete with those larger companies.
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 | $18,006 | 11.5 years |
| 8 kW | $3.56 | $19,935 | $24,399 | 11.2 years |
| 10 kW | $3.49 | $24,430 | $30,988 | 11.0 years |
| 12 kW | $3.42 | $28,730 | $37,772 | 10.8 years |
| 14 kW | $3.35 | $32,834 | $44,751 | 10.6 years |
| 16 kW | $3.28 | $36,743 | $51,926 | 10.4 years |
| 18 kW | $3.21 | $40,456 | $59,296 | 10.1 years |
| 20 kW | $3.14 | $43,974 | $66,861 | 9.9 years |
How to Save on Solar Panels
Since the brand of solar panels and the installer you choose has an impact on your costs and your system’s efficiency, production, and durability, it’s important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:
- Installation Process: Make sure you’re on the same page with the installer with regard to how the installation process will go and what you need to do before your solar panels are installed, such as updating your electrical system or roof.
- Reputation: Long-running companies likely have a solid reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
- Solar Panel Brands: Not all solar installers have the same brands of solar panels, so the brand and type of panel you want can play a big role in the company you go with.
- Warranty: An all-inclusive, 25-year warranty can help keep your solar panels running for a long time and save you money on repairs and maintenance.
EcoWatch's Pelham, AL Solar Cost FAQs
How much does it cost to install solar panels in Pelham?
The average cost of solar panels in Pelham is about $17,450 for a 5-kW system and $34,900 for a 10-kW system before the ITC, but the real cost will depend on things like the type 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?
The initial cost is a very important factor to consider, but whether it’s the most important for you depends on your reasons for going solar. In areas where rooftop space is limited, efficiency can be more important than the cost. Other factors that are important to keep in mind are the quality and durability of your solar panels.
Does Pelham have a net metering program?
Most states offer net metering programs of some kind. Through these, you can be compensated for the extra power your system generates or or receive credits to put toward future energy bills. Currently there are just three states that don’t have any net metering laws: Alabama, Tennessee and South Dakota.
What solar power system size is right for my home?
To figure out how many solar panels you need, you need to know how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can generally 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.