Solar Panel Cost Guide in Algoma, MI (2025 Update)
- Algoma Solar Installation Cost: $17,551
- 25-Year Savings: $22,471
- Payback Period: 12.7 Years
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Average Cost of Solar Panels in Algoma
Find out what the average cost of installing solar panels is in Algoma.
In Algoma, solar panels cost about 4 per watt on average.To cover the typical energy usage of the average home in Algoma, most homeowners require a 6.2-kilowatt system. Using the figure above, a solar installation costs around $17,551, or $25,098 before the federal solar tax credit of 0 is applied.
These figures are only averages, and your own solar costs will most likely differ based on your specific situation and what company you want to go with.Even with the significant initial cost, the average Algoma homeowner can save around $21,000 on their energy bills over 20 years, which is one of the perks of solar.
For a personalized quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Algoma
| Year | Return on Investment |
|---|---|
| 1 years | $-16,297 |
| 3 years | $-13,790 |
| 5 years | $-11,282 |
| 7 years | $-8,775 |
| 9 years | $-6,268 |
| 11 years | $-3,760 |
| 13 years | $-1,253 |
| 15 years | $1,255 |
| 17 years | $3,762 |
| 19 years | $6,269 |
| 21 years | $8,777 |
| 23 years | $11,284 |
| 25 years | $13,792 |
Top Solar Installers in Algoma
When going solar, many homeowners prefer to use a solar installation company since handling can be a challenging project. Some solar installers, particularly local ones, can help you make the most of incentives in Algoma, therefore optimizing your ROI.
If you’d like to start using solar energy but still aren’t certain which solar system company to go with, here are our suggestions for providers in Algoma:
See all of the solar companies in Algoma
Factors that Affect Solar Panel Costs in Algoma
There are many factors that can influence your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that does the installation.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to a few different factors. One of the most significant factors is the system size, which is measured in kilowatts (kW). Solar power systems that have greater efficiency or power generation require better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $4,060.Some solar brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer higher efficiency. In a city like Algoma, where sunlight isn’t as abundant, efficiency can quickly pay off. In addition, if you have a small roof or you don’t have a lot of 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
For some homeowners, paying for solar out of pocket can be a challenge. Solar loans are provided by most installers in Algoma, which can lower, or in some cases eliminate, your upfront costs to make solar more affordable.Even though solar loans make going solar more accessible for Algoma homeowners, they can also increase the total you pay for your system, depending on your interest rate. If you make a larger down payment, though, you can avoid paying as much in interest.
Solar Panel Installation Company
Finally, the company you choose to install your solar panels can impact the cost. Algoma’s solar companies all have different labor costs and add varying upcharges to equipment. Additionally, some companies in Algoma know more about local solar incentives and can help you learn about 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 | $4.22 | $17,734 | $15,900 | 13.2 years |
| 8 kW | $4.14 | $23,191 | $21,655 | 12.9 years |
| 10 kW | $4.06 | $28,420 | $27,637 | 12.7 years |
| 12 kW | $3.98 | $33,422 | $33,847 | 12.4 years |
| 14 kW | $3.90 | $38,196 | $40,284 | 12.2 years |
| 16 kW | $3.82 | $42,744 | $46,948 | 11.9 years |
| 18 kW | $3.74 | $47,064 | $53,840 | 11.7 years |
| 20 kW | $3.65 | $51,156 | $60,959 | 11.4 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:
- Contract: Read the contract terms carefully to make sure you understand the cost breakdown, completion timeline rebates and warranties.
- Reputation: Solar companies that have great reviews from their customers and that have been in business for many years most likely provide quality solar panel installation and expertise.
- Installation Process: Homeowners should understand how exactly the installation process will go, as well as important factors like the completion timeline.
- Warranty: A quality company stands out from other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
EcoWatch's Algoma, MI Solar Cost FAQs
How much does it cost to install solar panels in Algoma?
This is a hard question to answer exactly, because the cost depends on many factors. Generally speaking, it costs about $20,300 for a 5-kW system and $40,600 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 above-average energy consumption. Conversely, you can spend less if you opt for a smaller solar panel system or less expensive solar panels.
Are solar panels free in Algoma?
A solar panel system isn’t free in Algoma, but there are some options that can make getting them more feasible, such as leasing solar panels or getting a solar loan. There may also be local programs or incentives that can further reduce the cost.
Can solar panels significantly reduce my energy bills?
Solar panels can potentially eliminate your electricity bills depending on where you’re located and the efficiency of your system. Even if it doesn’t get rid of them completely, you can save a lot of money on your bills, about $1,121.15 per year.
What solar power system size is right for my home?
To figure out what solar panel system size you need, you should find out how much energy your home requires 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 household 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.