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Best 3 Solar Companies in Birmingham, AL

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Written By Max Peterson|Last Updated: April 18, 2024

Birmingham homeowners are increasingly using solar panels to power their homes and heat their water. With all the options to choose from in this urban jungle, you might feel overwhelmed searching for an exceptional provider. In this article, we'll showcase Birmingham's best solar companies and offer suggestions for your company choice, so you can find the right one for your household.

Best High-Efficiency System
4.8
  • Builds custom, high-efficiency solar systems suited to each home
  • Extensive coverage area throughout the country
  • Offers energy storage and EV charger add-ons

Top Birmingham Solar Companies

Small Tech Solar Logo

Small Tech Solar

3.4/5
Based on 28 customer reviews.

Services Offered

Battery StorageConsultationPanel Installation

Highlights

  • Free quotes
  • Reliable customer support
  • Clear pricing policy
2534 Mountain Cove, Hoover, AL 205-862-9610 smalltechsolar.com
Solar Technology Alabama Logo

Solar Technology Alabama

4.2/5
Based on 15 customer reviews.

Services Offered

Panel InstallationCleaning And MaintenanceOff-Grid Solar SystemsGrid-Tied Solar System

Highlights

  • Reliable customer support
  • Informative resources
  • Free quotes
1206 Eva Rd, Eva, AL 256-482-2063 solartechnologyalabama.com

Ranking Methodology

Our team used the following criteria to assess the best Birmingham solar companies.

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Facts about Birmingham
Average Max Temp:72°F
Solar Payback Period:8.7 years
Average Daily Sunlight:60%
Homes Powered by Solar:943
Average Annual Energy Bill:$1,848
Solar Power per Capita Percentile:48.0%

Expert Tips By

This Old House empowers homeowners with the knowledge and tools they need to tackle various projects and navigate the complexities of homeownership.

Benefits of Solar Energy

Solar energy offers multiple advantages. Here are some highlights.

  • Lowered energy bills: With solar energy systems, you generate power without paying the tacked-on costs of grid-tied power. Going off-grid can eliminate your bills completely. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
  • Better energy independence: Adding a solar battery storage system lets you have trustworthy energy during grid outages and storms.
  • Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.

What Solar Incentives Are Available to Birmingham Homeowners?

The state of Alabama offers a variety of solar incentives to help lower your solar system costs. Below is a breakdown of available solar programs where you live.

Incentive Type: Personal Tax Deduction

Incentive Amount:

100%

Incentive Type: Property Tax Incentive

Website: revenue.alabama.gov

Incentive Type: Loan Program

Website: alabamapower.com

Incentive Amount:

Varies, up to 100% of project cost for qualifying customers

Incentive Type: Personal Tax Credit

Website: ecowatch.com

Incentive Amount:

30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

How To Choose the Best Solar Company in Birmingham

The cost and effectiveness of solar panels often depend on the solar company that mounted them. Make your choice based on the following essential elements.

Licensing and Training

Alabama certifies solar contractors with similar requirements to other electrical professionals. They must have a minimum of 4 years of field experience and file an application with the state's Electrical Contractors Board. Solar providers can also earn certifications from standards organizations and trade groups. The top ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.

Cost of Solar Panels in Birmingham

Your solar panels' model will affect how much energy you can produce. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.

Additional system add-ons, such as electric vehicle (EV) chargers and battery storage, will increase your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar providers provide these additional features, so look for a contractor that sells them if it's a priority for you.

You can plan to spend about $17,450 on average for a five-kilowatt solar energy system in Birmingham. Check the table in this section to get an idea of what amount Birmingham solar companies might quote for your specific solar system's price.

Solar Panel CostAverage Cost
Solar Monocrystalline$1,142
Solar Polycrystalline$891
Thin-Film$521
Solar Battery$731
Solar Home EV Charger$2,740

Financing Solar Energy in Birmingham

Choosing the optimal financing solution will affect your overall solar system cost and expected savings. Common payment options include cash payments, loans, leases, and power purchase agreements. We advise making a cash payment or securing a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another good option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still benefiting from energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a variable rate based on only the energy you use. We generally don't recommend these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in certain circumstances. We recommend working with an installer that offers multiple financing options. Ask each salesperson about what's available, and get more than one estimate for the best odds of keeping within your spending limits.

The table below lists the average payback periods for different capacities of solar systems in Birmingham.

You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Municipal and state governments and utility companies might also offer rebates, discounts, and unique financing solutions that could save you more.

Solar System CapacityEstimated Payback period
1 kW1.7 years
2 kW3.5 years
5 kW8.7 years
10 kW17.5 years

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Frequently Asked Questions About Solar in Birmingham

How much energy and money could I save per year by switching to solar?

Most Birmingham homeowners spend about $1,848 on energy each year. Your costs could drop by $1,104.38 for each kilowatt you generate after you pay off a solar array.

Is solar energy widely available in Birmingham?

Yes, solar energy is on the rise in Birmingham. Some homes already generate solar power on-site or through utility grids, and they're fortified by a state solar economy with 707 job opportunities and counting.

Should I expect a property value increase after installing solar panels?

Yes, new solar systems mean higher property values according to the National Renewable Energy Laboratory (NREL.) Homeowners could project a $20 property value increase for each dollar they save on energy. Therefore, $600 in energy savings could boost your property value by $12,000.

What if I live in a dark or gloomy

Even with the Birmingham area's above-average tree cover, you could still take advantage of solar energy. Your technician will maximize your system's performance by selecting the proper site for panels, cleaning them regularly, positioning them to capture the most sunlight throughout the year, and installing a battery backup system. This way, you can store solar power and use it as necessary.

Is solar panel installation a fast job?

There's no universal answer for how long a solar project might take. Ultimately, it depends on local weather, panel style, the necessary prework, system size, and the permitting and inspection process. Most homeowners can be solar-ready within two months from their initial estimate visit.

How long does it take to pay back a solar loan in Birmingham?

The average payback period for a solar loan in Birmingham is 11.1 years. By paying off extra principal each month, you can shorten the payback period and own your system faster.

What are the signs I shouldn't use a particular solar company for my job?

Even the most renowned Birmingham solar installers will have both glowing and unfavorable reviews. To make the most informed selection possible, focus on these indicators to know if a company isn't worth your investment:
  • Pressuring you into signing a contract
  • Not being straightforward about warranties, training and credentials, references and cost
  • Limited or no customization
  • Superficial, rushed site evaluation
  • Limited customer feedback

To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.

Sources