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How Much Do Solar Panels Cost in Alabama?

Southern Alabama is blessed with abundant sunlight for most of each year. Take Montgomery, the state capital, which enjoys, on average, five hours of peak sun each day and up to six in the warmest months of summer. This increase the chance of getting the best advantage from solar installation and cutting electricity cost. If you install a household solar system in your Alabama home, you can turn all that sunshine into annual savings.

Further justification for going solar exists for the nearly one-sixth of Alabama’s population that receives its electricity from the Tennessee Valley Authority (TVA).  In exchange for agreeing to sell them all the energy, you generate at full retail price + $0.02/kWh. You can save a huge sum when you buy your solar panels for home.


Average Cost of Solar in Alabama

In Alabama, the price of solar panels has dropped dramatically.

The national average for a solar panel system is $2.66 per watt, while in Alabama, the cost is just around $2.45. However, in Alabama, the average monthly power bill is $144, thus most solar consumers require an 11.5-kW installation to balance that cost. Given that this is one of the highest monthly costs in the nation, the investment in solar panels is understandably more costly but ultimately more worthwhile.

People of Alabama will still pay far more on average for solar energy systems, despite the falling prices of solar panels. The average price of a residential solar installation is $28,175 before the federal tax credit is applied and $19,500 afterward.

Read on for more about solar rebates and other financial benefits in the State. If you’d rather skip the small talk and get directly to talk to a qualified expert about a price quotation for an installation, you may do so by contacting solar experts through this link.


How Much Do Solar Panels in Alabama Typically Cost?

After factoring in the federal tax credit, the typical Alabama household will spend between $15,000 and $25,000 for a solar panel system. Your system cost is affected by a lot of variables, and it may be difficult to estimate how much it will be without first learning more about your individual circumstances and the characteristics of your home.

In order to give you a better sense of what your final bill may be, we’ll walk you through the main aspects that affect system pricing below.

Solar Panels in Arrays and Related Equipment

Solar Panels in Arrays and Related Equipment

The cost of your solar energy system will largely be determined by the price of the solar equipment you choose to install. What kind of appliances work best in your Alabama house is mostly determined by the state’s environment and weather. It also depends on the number of family members including their academic and professional needs. 

In Alabama, locals can expect an average of 213 sunny days each year. It is an anticipated average that is somewhat more than the national average. Due to a large amount of sunshine in Alabama, even second-tier panel brands are usually sufficient for offsetting energy expenses.

Altogether, this indicates that Alabama’s system costs are lower than those of places that receive less sun and/or are farther north. It makes getting solar installed at your home or office an ideal solution. You can simply save a lot of monthly as well as annual expenses on hefty electricity bills with solar panels for home. 


Advice on Sizing Your Solar Energy System and Securing an Alabama Solar Loan

The method of payment you choose for your solar panel installation might also have a significant impact on the final cost. If you pay cash, all you have to worry about are the prices of materials and labor. If you finance your solar energy system, you’ll have to make monthly payments plus interest. At a rate of 5% per year, interest would add an extra $4k to the total cost of a system that costs the national average of $19k.

Financing options approved by the state government in Alabama might help you cut down on the high cost of installing solar panels. The company offers low-interest Property Assessed Clean Energy (PACE) financing for business and residential properties.

In Alabama, there are currently no solar financing options specifically aimed at helping low-income homes afford solar energy systems to get solar panels for home.


Pitfalls that Alabama Homeowners Should Know While Going Solar

Realizing the financial and environmental benefits of installing solar panels for home on your roof is the first step toward a more sustainable lifestyle and greater energy independence. But that’s just the beginning of the process. 

The following are some extra factors to keep in mind during the procedure.

  • Initial payments
  • Compensation Timeframe
  • Net Metering Laws and Regulations
  • Policies & Incentive Structures Under Consideration
  • Environmental Conditions
  • Businesses That Promote Solar Leases and PPAs


Initial payments:

The initial cost of solar panels will always be a source of debate, regardless of the number or quality of incentives and perks that may be offered. Thank goodness, the cheap cost per watt makes this less of a problem in the state of Alabama.

You may lower your initial investment by opting for a zero-down solar loan, switching to a less expensive brand of solar panels, keeping your system simply by using just panels and inverters, and skipping frills like electric car chargers.


Compensation Timeframe:

Before going solar, every person should figure out how much money they’ll save by installing solar panels or at least have a reliable solar panel installation firm provide them with an estimate. The amount of time it requires you to recoup your initial investment via energy efficiency is a solid estimate of the total value of solar for your house.


Alabama’s Net Metering Laws and Regulations:

In many places, residents may benefit from a terrific solar incentive called net metering that can lower their monthly energy costs, speed up the time it takes to recoup the cost of installing a solar energy system, and increase their return on investment. Unfortunately, net metering is not required in the state of Alabama. That’s why most people who have solar panels also get solar batteries. This may significantly increase your up-front costs, but it usually ends up saving you money in Alabama over just using solar panels for home.


Policies & Incentive Structures Under Consideration:

In contrast to the rest of the nation, Alabama has a much smaller solar market. In other words, there is potential for improvement since current solar incentives and regulations aren’t optimal. Although it may be some time until households are eligible for rebates and incentives, it is still a good idea to keep tabs on the solar sector before making any major investments.


Environmental Conditions in Alabama:

Alabama has an above-average amount of sunny days that may be used to generate electricity from solar panels. Some locals, however, are concerned about the security of their solar panels for home since they are familiar with tornadoes and other forms of severe weather. You may feel secure about your decision to install solar panels in Alabama if the guarantee covers physical damage. 

The rainfall in Alabama is much more than the national average. It may affect your panel efficiency by making it a bit lower on overcast and wet days. However, stored solar energy is present for a significant portion of the year. As an added bonus, the rain will help keep the dirt and debris off your rooftop solar equipment, which may impair its effectiveness even when the sun is shining.


Businesses That Promote Solar Leases and PPAs:

Lastly, you should do some homework to choose the best solar installer for your solar panels for home needs. It’s safe to assume that “free panels,” solar leases, and power purchase agreements (PPAs) aren’t in anyone’s best interest, especially if they’re advertised by a company.

Although solar leasing may seem like a bargain at first glance, they are generally not less expensive than zero-down loans. Additionally, unlike a cash purchase or solar loan, they do not improve your property’s value, they do not qualify for the federal tax credit, and they take much longer to pay off, often lowering your return on investment by a large amount.


How Do You Put up a Solar Power System in Alabama?

Alabama’s lack of net metering and connectivity requirements makes the procedure of solar system installation more difficult. For this reason, it is highly advised that you retain the services of a reputable contractor to ensure a trouble-free operation. Your solar system will be built and wired correctly, so you can relax. At Solar Master Pro, we offer convenient and hassle-free solar installation processes. Our skilled professionals can do it within a few days. This is how you can process with us your solar panels for home installation!

Converting to solar power is easy and may be done right away:

Having solar installed at your home is a way to help the environment while benefiting from clean electricity. This is how we process:

  • First, fill up our residential solar application with some basic details.
  • Get precise price quotations!
  • Our representative will visit your home to have a precise overview. 
  • Get your solar system installed with our professional support
  • Once the contract is signed, the installation process should take no more than three to four days. 


Frequently Asked Questions:

How much do solar panel installations cost in Alabama?

A typical Alabama household generally requires a 12kW system to completely offset power expenses. If the average cost per watt is $2.5, then the total cost before the federal tax credit would be around $30k, and after the credit, the cost would be $20k. This is how solar panels for home benefit you. 

That being said, the final tally might be much cheaper or pricier than that. There are a lot of variables that go into determining the size of the system you’ll need, including the square footage of your house, the orientation of your roof, your monthly energy costs, the amount of shade on your land, and more. A reliable solar firm will need to inspect your property in order to provide an accurate price for solar installation.


Does installing solar panels on your Alabama house raise the value of your property?

If you live in Alabama, installing solar panels on your home will increase its value. There is a value gain of 4.1% on average once a home goes solar. In highly crowded regions like Birmingham and Montgomery, the increase in value may be much more noticeable. Remember that this appreciation in value applies only to solar systems purchased with cash or a solar loan. Your home’s worth will not increase as a result of a lease or PPA.


Can I get free solar panels in Alabama?

There is no such thing as free solar panels in Alabama. You  have seen that some companies that promote solar panel installations may tout “free solar panels,” but this is seldom the case. This is most likely a ploy on the part of these businesses to get you to commit to a solar lease or PPA (PPA). These alternatives are far less advantageous than solar financing and outright purchases.

Therefore, installations of solar panels for home in Alabama eventually pay for themselves. When purchasing or financing a solar system, it is possible to think of the equipment as being free due to long-term savings.

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