Solar Panel Cost Guide in Algoma, MI (2023 Update)
- Algoma Solar Installation Cost: $12,156
- 25-Year Savings: $22,463
- Payback Period: 8.8 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in Algoma
See how much it might cost to switch to solar power in Algoma.
The national average cost of solar panels is $2.66 per watt, but in Algoma it's 2.81 per watt. Using this figure, a typical 6.2-kW system would cost about $12,156 before the 30% federal solar tax credit is applied.
These figures are only averages, and your own solar costs will look different based on factors unique to your home and what company you go with. Many homeowners find adopting solar power is a solid investment. The average homeowner in Algoma can save about $21,000 on their power bills over 20 years.
You can click the button below to get connected with a vetted solar installer in Algoma that can help you get a more accurate cost estimate for your home.
Solar savings over time in Algoma
| Year | Return on Investment |
|---|---|
| 1 years | $-10,771 |
| 3 years | $-8,002 |
| 5 years | $-5,232 |
| 7 years | $-2,463 |
| 9 years | $307 |
| 11 years | $3,076 |
| 13 years | $5,846 |
| 15 years | $8,615 |
| 17 years | $11,385 |
| 19 years | $14,154 |
| 21 years | $16,924 |
| 23 years | $19,693 |
| 25 years | $22,463 |
Top Solar Installers in Algoma
Many homeowners decide to use a solar panel company since trying to install solar panels on your own can be a labor-intensive endeavor. The payback period of solar panels will vary depending on factors like your location and energy usage, but working with a solar installer 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 professional solar installer can help your solar project go smoothly. Here are our recommendations:
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
See all of the solar companies in Algoma
Factors that Affect Solar Panel Costs in Algoma
Cost is typically one of the most important factors for homeowners who are considering investing in solar. There are a few key factors that determine your overall cost in Algoma: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
Solar Equipment
Solar system size, which is measured in kilowatts, is one of the largest factors that affects the overall cost of going solar. For that reason, it's a priority to accurately assess the size of the solar energy system needed for your home by figuring out your energy needs. The model of solar panels and equipment you want is another factor that will greatly impact costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to come at a higher price. Further, solar equipment is more than just the solar panels themselves. You'll also need to consider 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's in your budget.
Solar Financing Terms
Many homeowners find the average cost of solar in Algoma to be prohibitively expensive, even if the investment pays off over time. Fortunately, almost every solar installer in the area provides financing options. Solar loans greatly decrease upfront costs in most cases, but they also result in paying more over time due to interest. It's wise to factor the interest you'll pay in your final cost estimate. If you can afford to put more money down upfront, you can reduce your total costs and the amount of time it'll take to pay back the loan.
Solar Panel Installation Company
The final key cost factor you should consider is the installer you choose. Given the growing popularity of clean energy solutions in Algoma, you'll have a great number of options to choose from, but each comes at various price points for labor and equipment. Larger national companies typically have lower costs, but some local companies undercut them by promoting sales and discounts. While the smaller companies might not have access to specific equipment options like Tesla Powerwall batteries or additional services like electric car charger installation, they might be cheaper overall.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.92 | $12,274 | $21,360 | 9.1 years |
| 8 kW | $2.87 | $16,051 | $28,795 | 8.9 years |
| 10 kW | $2.81 | $19,670 | $36,387 | 8.8 years |
| 12 kW | $2.75 | $23,132 | $44,137 | 8.6 years |
| 14 kW | $2.70 | $26,436 | $52,044 | 8.4 years |
| 16 kW | $2.64 | $29,584 | $60,108 | 8.2 years |
| 18 kW | $2.59 | $32,574 | $68,330 | 8.1 years |
| 20 kW | $2.53 | $35,406 | $76,709 | 7.9 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: Although reading through a contract can take a lot of time, it's important to do it thoroughly so you can make sure you understand what services your solar company will provide and the terms of the warranty.
- 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: If you care about the durability of your solar energy system, making sure your company offers a 25-year, all-inclusive warranty can give you some peace of mind.
- Reputation: Make sure your solar system installer has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by previous customers and solar experts like the EcoWatch team.
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
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 a few different factors. Broadly speaking, it costs about $14,050 for a 5-kW system and $28,100 for a 10-kW system after the ITC is applied. It will be more expensive if you want extra solar equipment or higher quality panels, or if you have higher-than-average energy needs. On the other hand, you can spend less if you choose a smaller solar panel system or less expensive solar panels.
Are solar panels free in Algoma?
You can't get solar panels for free in Algoma. However, you may still be able to get them on a lower budget. You can lease solar panels for a low upfront cost or, if you'd prefer to own your solar panels, you can finance them with a solar loan.
Do solar panels increase your property 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 Algoma is currently $197,954, which means you can expect a value of about $8,116 more than houses without a solar system. The exact figures will vary, but most experts agree that installing solar panels in Algoma is a fruitful investment.
How often do you have to replace solar panels?
Although the average lifespan of solar panels is 25 to 30 years, that doesn't mean they stop working completely at that time. What this means is the amount of energy they produce will have decreased significantly after that point. You can decide to replace them once you've had them for that long or you can keep using them at a lower efficiency.
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.