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.govIncentive Type: Loan Program
Website: alabamapower.comIncentive Amount:
Varies, up to 100% of project cost for qualifying customers
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive 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 Cost | Average 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 Capacity | Estimated Payback period |
---|---|
1 kW | 1.7 years |
2 kW | 3.5 years |
5 kW | 8.7 years |
10 kW | 17.5 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?
Is solar energy widely available in Birmingham?
Should I expect a property value increase after installing solar panels?
What if I live in a dark or gloomy
Is solar panel installation a fast job?
How long does it take to pay back a solar loan in Birmingham?
What are the signs I shouldn't use a particular solar company for my job?
- 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
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