Solar Panel Cost Guide in Rainbow City, AL (2024 Update)
- Rainbow City Solar Installation Cost: $22,590
- 25-Year Savings: $35,469
- Payback Period: 11.0 Years
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Average Cost of Solar Panels in Rainbow City
See how much it might cost to switch to solar power in Rainbow City.
The national average cost of solar panels is $2.66 per watt, but in Rainbow City it’s 3 per watt.To cover the typical energy usage of the average home in Rainbow City, most homeowners require a 9.2-kilowatt system. Using the per-watt figure above, a solar installation costs around $22,590, or $32,304 before the federal solar tax credit of 0 is applied.
Remember that the numbers above are only averages. The price you’ll end up paying for solar may vary based on your household energy needs, the type of solar system you want to get, your solar contractor and more.For many homeowners, the upfront investment in solar power is worth paying. On average homeowners in Rainbow City see about $21,000 in savings on energy bills over 20 years.
To see your potential savings and connect with a local solar company, click the button below.
Solar savings over time in Rainbow City
| Year | Return on Investment |
|---|---|
| 1 years | $-20,743 |
| 3 years | $-17,047 |
| 5 years | $-13,352 |
| 7 years | $-9,657 |
| 9 years | $-5,962 |
| 11 years | $-2,267 |
| 13 years | $1,428 |
| 15 years | $5,124 |
| 17 years | $8,819 |
| 19 years | $12,514 |
| 21 years | $16,209 |
| 23 years | $19,904 |
| 25 years | $23,599 |
Top Solar Installers in Rainbow City
Many homeowners decide to use a solar installation company since installing solar panels by yourself can be challenging. Another upside of going with a solar installer is that they can help you make the most of your investment by bringing down your future costs of repairs and replacements with the help of warranties and helping you learn about local incentives you can take advantage of.
If you're on the hunt for a solar installer in Rainbow City, we've organized a list of our top suggestions here:
See all of the solar companies in Rainbow City
Factors that Affect Solar Panel Costs in Rainbow City
Cost is typically one of the most important factors for homeowners wanting to invest in solar. There are a few major factors that determine your overall cost in Rainbow City: solar equipment and system size, financing options and the solar installation company you choose. We’ll go over each of these briefly below.
Solar Equipment
The size of the solar energy system you need for your home, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by nearly $3,490. The type of solar panels and equipment you get is another factor that will considerably impact costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to be more expensive. Further, 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 looking for a solar system that’s in your budget.
Solar Financing Terms
Many homeowners find the average cost of solar in Rainbow City to be too steep, even if the investment pays off over time. Fortunately, almost every solar company in the area provides financing options. Solar loans greatly decrease upfront costs in most cases, but they also lead to a higher cost over time because of interest.However, the interest on solar loans also adds to your all-in costs, so it’s important to consider that as well. You can always reduce the total you pay in interest and sometimes even your APR by putting more money down.
Solar Panel Installation Company
The solar company you select will play a role in your total cost to adopt solar energy. Different companies will charge different amounts for the equipment and labor.You may notice national solar installers that have lower prices because of their bigger brand name and access to bulk pricing, or you might see small, local installation companies offering deals or promotions to compete with those major players.
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 | $18,060 | 11.4 years |
| 8 kW | $3.56 | $19,935 | $24,471 | 11.2 years |
| 10 kW | $3.49 | $24,430 | $31,078 | 11.0 years |
| 12 kW | $3.42 | $28,730 | $37,880 | 10.8 years |
| 14 kW | $3.35 | $32,834 | $44,877 | 10.6 years |
| 16 kW | $3.28 | $36,743 | $52,070 | 10.3 years |
| 18 kW | $3.21 | $40,456 | $59,458 | 10.1 years |
| 20 kW | $3.14 | $43,974 | $67,042 | 9.9 years |
How to Save on Solar Panels
There are numerous companies available in Rainbow City, and some homeowners feel overwhelmed considering their options. Picking the right company for you can be difficult, so here are some tips to help you decide:
- Warranty: A comprehensive, long-term warranty can help keep your solar system running for a long time and save you money on part replacement and repairs.
- Reputation: Long-running companies likely have a good reputation. This is important because it ensures that it will not only see your solar project through, but will also provide adequate aftercare and customer service, such as part repairs and replacements.
- Contract: Although reading through a contract can take a lot of time, it’s important to do it thoroughly so you can be sure you understand what services your solar company will provide and how part repairs and replacements will be handled.
- Solar Panel Brands: The kind of solar panel you need plays a role in which company you should opt for, since different companies have access to different panels.
EcoWatch's Rainbow City, AL Solar Cost FAQs
How much does it cost to install solar panels in Rainbow City?
The average cost of solar panels in Rainbow City 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 stuff such as the type of solar panels you want, what size system you need and how much energy you use.
Should I lease or buy solar panels in Rainbow City?
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 incentives and your home value won’t increase. Buying solar panels is a better option if you want to get the most savings.
Do solar panels increase the value of your home?
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 Rainbow City is currently $171,553, so you could be looking at a value of about $7,034 more than houses without a solar system. The exact figures will vary, but most experts agree that installing solar panels in Rainbow City is a rewarding investment.
How long do solar panels last in Rainbow City?
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 larger 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.