Solar Panel Cost Guide in Fairhope, AL (2024 Update)
- Fairhope Solar Installation Cost: $20,933
- 25-Year Savings: $32,840
- Payback Period: 11.0 Years
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Average Cost of Solar Panels in Fairhope
We go over average solar pricing in Fairhope.
The national average cost of solar panels is $2.66 per watt, but in Fairhope it’s 3 per watt.To cover the typical energy usage of the average home in Fairhope, most homeowners require a 8.6-kilowatt system. Using the figure above, a solar installation costs about $20,933, or $29,934 before the federal solar tax credit of 0 is applied.
The prices above are just estimates to give you an idea of the cost of a solar energy system. The true cost of installing solar panels can vary quite a bit depending on several factors, such as what size system you need, your energy usage and what solar installer you go with.Many homeowners find adopting solar power is a rewarding investment. The average homeowner in Fairhope can save about $21,000 on their energy bills over 20 years.
To see your potential savings and connect with a local solar installer, click the button below.
Solar savings over time in Fairhope
| Year | Return on Investment |
|---|---|
| 1 years | $-19,279 |
| 3 years | $-15,970 |
| 5 years | $-12,661 |
| 7 years | $-9,352 |
| 9 years | $-6,043 |
| 11 years | $-2,734 |
| 13 years | $574 |
| 15 years | $3,883 |
| 17 years | $7,192 |
| 19 years | $10,501 |
| 21 years | $13,810 |
| 23 years | $17,119 |
| 25 years | $20,428 |
Top Solar Installers in Fairhope
Trying to put up solar panels on your own can be a challenging project, which is why hiring a solar installation company is a good option for many homeowners. The expertise that solar companies offer can be valuable as well, particularly if you aren’t sure what brand of solar equipment would be right for your home.
Working with a licensed solar company can help you make the most of your investment in solar. Here are our recommendations:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
See all of the solar companies in Fairhope
Factors that Affect Solar Panel Costs in Fairhope
For many Fairhope homeowners, the decision to adopt solar energy rests on cost. However, the range of solar installation costs can be quite wide in Fairhope, with typical prices between $20,000 to $40,000. There are a number of factors that significantly influence the price you’ll pay, which we'll go over below.
Solar Equipment
The size of the solar energy system you need, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by nearly $3,490. Some solar brands — like Maxeon from SunPower — are more costly upfront but also tend to offer better efficiency. In a city like Fairhope, where sunlight is abundant, efficiency can quickly pay off. Also, if you have a small roof or limited 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
Solar panels can save you money on energy bills over many years, but they can also be a significant investment. That’s why many Fairhope homeowners opt to finance their solar panel systems to offset upfront costs.You’ll have to consider the long-term cost of financing options, including the amount of interest you’ll pay over the length of the loan. If you’re only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the principal cost. Making a larger down payment or getting a solar loan with a low APR could reduce your costs significantly.
Solar Panel Installation Company
A final consideration when trying to estimate the cost of solar for your home or business in Fairhope is the company you choose to install your solar system. As with choosing a company to build a deck or pool, for instance, there are plenty of solar installers that provide a range of services for different budgets.The company’s size can sometimes play the most considerable role in your costs. Larger national companies, like SunPro and Sunrun, often have lower pricing because of access to greater resources and better pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or promotion can bring their pricing lower to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.63 | $15,244 | $18,041 | 11.4 years |
| 8 kW | $3.56 | $19,935 | $24,445 | 11.2 years |
| 10 kW | $3.49 | $24,430 | $31,045 | 11.0 years |
| 12 kW | $3.42 | $28,730 | $37,840 | 10.8 years |
| 14 kW | $3.35 | $32,834 | $44,831 | 10.6 years |
| 16 kW | $3.28 | $36,743 | $52,017 | 10.3 years |
| 18 kW | $3.21 | $40,456 | $59,399 | 10.1 years |
| 20 kW | $3.14 | $43,974 | $66,976 | 9.9 years |
How to Save on Solar Panels
Since the type of solar panels and the company you choose significantly affects your costs and your system’s durability and efficiency, it’s important to select the right ones for you. Here are some things to keep in mind to help with your decision:
- Reputation: Companies that have been operating for many years likely have a good reputation. This is important because it ensures that it will not only see your solar installation through, but will also provide adequate aftercare and customer support, such as part repairs and replacements.
- Solar Panel Brands: Different companies have different brands and kinds of panels. If you want a specific brand, make sure the solar installer you’re considering has it.
- Contract: When looking through your solar company’s contract, ask questions about any terms you’re not sure of and be sure you understand what happens in scenarios such as a system part breaking or the company going out of business.
- Installation Process: An important thing to understand when adopting solar power is the installation process itself. Be sure to align on any details you should know with your solar installer, such as what permits you should acquire and what the project timeline is.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
EcoWatch's Fairhope, AL Solar Cost FAQs
How much does it cost to install solar panels in Fairhope?
This is a difficult question to answer precisely, because the cost depends on many factors. Generally speaking, it costs about $17,450 for a 5-kW system and $34,900 for a 10-kW system after the ITC is applied. You can expect to pay more if you want extra solar equipment or more efficient panels, or if you have above-average energy usage. On the flip side, you can spend less if you choose a smaller solar panel system or cheaper solar panels.
Is it better to lease or buy solar panels in Fairhope?
Leasing solar panels can be an option if you can’t pay upfront or get a solar loan, but since you don’t own the system, you can’t take advantage of many solar incentives. Also your property value won’t increase, so you’ll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most financial benefits from going solar.
Can you sell solar power back to the grid in Fairhope?
Most states have net metering programs of some kind. Through these, you can either get paid for the extra power your system produces or or receive credits to put toward future utility bills. Currently there are just three states that don’t have any net metering laws: Alabama, Tennessee and South Dakota.
How many solar panels should I get to power my home?
To figure out what solar panel system size you need, you should find out how much energy your home uses 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.
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.