Solar Panels Cost 13k-24k in Montgomery, AL | September, 2024

Solar Panels Cost $13k-$24k in Montgomery, AL | September, 2024

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How much do solar panels cost in Montgomery, AL in 2024?

You'll spend, on average, $3.96 per watt in Montgomery, AL in the month of September, 2024 to go solar.

Using the rate per watt, we are able to come to the conclusion that for every 1 kW (1000 watts) your solar panels can produce, you will have to spend, on average, $3,960 to have it installed. On average, the expense of a 5 kW solar system in Montgomery, after you subtract 30% federal tax credit, is around $13,860. To fully meet your energy demands, you could require more than a 5kW system.

On the left, select your county to view the typical roof size and the maximum production capacity for residential solar on houses in your area. Additionally, you can also see an outline of the costs, payback period and 20 year average savings for a 5 kW system in your county below.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Montgomery: $13,860US Average: $12,595
Average Payback Period The number of years until you break even on the solar investment.
Montgomery: 6 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Montgomery: $24,432US Average: $15,737

Solar Potential in Montgomery

Estimated system size and solar electricity production per median viable roof in
Montgomery.

Roof size 751sq. ft.
Capacity 10.5kW DC
Electricity 13.5kkWh AC per yr.

Electricity Costs in Montgomery, AL & What that Means for Your Solar Panel Pricing

For Montgomery residents, the average monthly kWh usage is 1,147, with an standard electric bill of $184.30. Keep in mind that apartments and smaller dwellings, which generally have reduced energy consumption, are included in this statistic.

For September 2024, Montgomery, AL's mean electricity rate is 16.07¢ per kWh.

To fully meet the energy needs of an average user in Montgomery, a solar system of 9 kW or larger is needed. Before any incentives, a 9 kWsolar panel system will cost around $35,640, but with a 30% federal tax credit, the price drops to $24,948.

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Average solar panel costs by system size in Montgomery

Visible below and to the left is the pricing breakdown for multiple sizes of the solar panel systems in Montgomery. As expected, a larger solar system implies a greater initial expense, but it also results in more significant electricity savings and more substantial income tax credits.

The solar panel cost calculator below and to the right analyzes costs and benefits, based on an average $184.30 electric bill in Montgomery For a more accurate estimate, swap the $184.30 with your average electricity bill amount.

System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,248 a year
Est. Price
$13,860
Savings from a 5kWthis system
  • Est. yearly production 7,800 kWh
  • Est. monthly savings $104
  • Full payback in 6 years
Environmental Impacts
  • Reduces CO2 emissions by 3.22 tons a year
  • Equivalent to planting 148 trees a year
  • Equivalent to driving 7,970 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,498 a year
Est. Price
$16,632
Savings from a 6kWthis system
  • Est. yearly production 9,360 kWh
  • Est. monthly savings $125
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 3.86 tons a year
  • Equivalent to planting 177 trees a year
  • Equivalent to driving 9,564 mi less a year
System Size 7kW
Roof Size Min. space required
501 ft²
Electricity Value Annual Production $1,747 a year
Est. Price
$19,404
Savings from a 7kWthis system
  • Est. yearly production 10,920 kWh
  • Est. monthly savings $146
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 4.51 tons a year
  • Equivalent to planting 207 trees a year
  • Equivalent to driving 11,158 mi less a year
System Size 8kW
Roof Size Min. space required
572 ft²
Electricity Value Annual Production $1,997 a year
Est. Price
$22,176
Savings from a 8kWthis system
  • Est. yearly production 12,481 kWh
  • Est. monthly savings $166
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 5.15 tons a year
  • Equivalent to planting 237 trees a year
  • Equivalent to driving 12,752 mi less a year
System Size 9kW
Roof Size Min. space required
644 ft²
Electricity Value Annual Production $2,247 a year
Est. Price
$24,948
Savings from a 9kWthis system
  • Est. yearly production 14,041 kWh
  • Est. monthly savings $184
  • Full payback in 11 years
Environmental Impacts
  • Reduces CO2 emissions by 5.7 tons a year
  • Equivalent to planting 262 trees a year
  • Equivalent to driving 14,100 mi less a year

Montgomery Solar Panel Installation Incentives & Rebates | 2024

Between 80% and 100% of your solar or wind turbine installation costs may be covered by the REAP Grant if you own a rural small business or farm. If you think you might be eligible, try our REAP Grant eligibility tool to confirm your qualification.

Most residents are eligible for the 30% federal income tax credit for residential solar, making it a viable option in numerous states throughout the country. On top of that, there are various state and local incentives to further encourage the adoption of solar energy.

Alabama offers 4 solar rebate and incentive programs through multiple utilities and government entities.

Local Government Energy Loan Program

Value:Varies

Through its public-private partnership with PowerSouth, Alabama's Local Government Energy Loan Program offers zero-interest loans to governments and educational institutes for improvements involving renewable energy sources. The loans are repayable through savings on utility bills. They may borrow up to $350,000 for eligible projects, while schools may ask for $350,000 pr campus or $500,000 per system. There is a minimum loan of $50,000. An energy audit must be completed to identify improvements and the recipient must be benchmarked using the Energy Star Portfolio Manager program following installation. Details and application are available on the program website.

Local Option- Sales Tax Abatement for Renewable Energy Facilities

Value:Varies

In order to encourage renewable energy sources, Alabama allows local governments to provide exemptions and abatement for qualifying renewable energy facilities; the precise governmental body depends on the size of the facility. Facilities may also qualify for a reduced tax rate of 1.5%, although it was only available until 2019. Hydroelectric power is exempted from the definition of renewable energy resource, but most other renewable resources do meet the definition. Note that the local government can impose an additional sales or use tax. The exemption and abatement only apply to the noneducational portion of the sales tax.

Local Option- Property Tax Exemption for Renewable Energy Faclities

Value:Varies

Alabama provides abatement of property tax for qualifying renewable energy facilities for the noneducational part of the property tax. While most renewable resources are included in the program, hydroelectric power is exempted. The property tax abatement is based on the annual value of the assessed value. The abatement may be given for ten years and extended for another ten years, for a total of twenty years, depending on the permission of the local authority. Interested facilities can apply with the local governmental body. The local authority will perform a cost/benefit analysis to determine the maximum exemption period for the abatement.

AlabamaSAVES Revolving Loan Program

Value:Varies

Alabama SAVES funds subordinated participating interests in qualified third-party loans for financing energy projects of existing Alabama businesses. The participating interest can be 25% of the loan or 100% of the cost of the project, whichever is lower. Before funding can be awarded, the project must undergo an energy assessment and an estimated energy savings impact must be submitted to ensure the loan will be paid back within 10 years. This program was initially capitalized through the American Recovery and Reinvestment Program and is offered through the Alabama Department of Economic and Community Affairs. Please see the program website for information and program materials.

Are solar panels worth it in Alabama?

For those planning to remain in their homes after the solar system's payback period, adding solar panels is a obvious choice in Montgomery. A 5 kW solar system in Montgomery, AL could potentially save you $30,372 over the course of 20 years, with the break even point typically at 6 years.

The cost of not having solar panels in Montgomery, AL

Beyond forgoing the savings noted above, the absence of solar panels or an alternative backup energy solution leads to total dependency on your electric utility for power. Total reliance on your utility isn't always the best scenario as the news has recently shown.

Annually, customers in Montgomery face approximately 1.21 outages each year. The average length of an outage is 143.86 minutes. In events like overloaded power grids, winter storms or vandalism, this duration can extend significantly.

Even without a backup battery, a solar panel system could alleviate the burden of potential future power disruptions you may face.

Power Outages

Currently, 0 customers are being tracked in Montgomery County.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Montgomery, AL?

Your Energy Needs - The cost per watt is decreased with larger solar panel systems, even though the initial cost is higher. Numerous people find it beneficial to set up a solar energy system that can offset their entire electric bill. This ensures optimal savings.

Make & Model - Solar panels and mounting equipment, like many other products, come in different makes and models. The preferences for system that your installer has may make it essential to choose a reputable company. Consumers who opt for superior materials generally enjoy a better long-term experience.

Solar Panel Type - The standard in the industry is now monocrystalline panels, and for good reason. They are pricier but produce more energy. The majority of professionals in solar installation use panels crafted from this material.

Your Property - No two properties or homes are the same. Rough terrain, trees, or additional hindrances can make the installation process more challenging. The majority of solar installers today are able to use satellite imagery to assess your home and incorporate these elements in the first cost estimate.

Labor Rates - Employees get varied wages from different companies, and these costs are borne by the consumers. Companies that pay higher wages often receive higher reviews for their work and customer service.

Permitting & Interconnection - Installation costs will be affected by different local permitting and utility interconnection fees, depending on the region. Quality local installers will include these numbers into your first quotes to prevent any surprises.

See what solar panels cost in other AL cities

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Who are the best solar installers in Montgomery?

Eagle Solar and Light

Birmingham, AL(205) 202-2208

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • Monitoring of independent energy generation.
  • Auditing of energy requirements for independent energy generation.
  • Reparation of solar arrays.
  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Go Solar Power

Boca Raton, FL(800) 530-9597

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Silver Sun Solar

Deltona, FL(340) 227-7785

Services

  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Tungsten Electric

Nashville-Davidson metropolitan government, TN(615) 491-0206

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

LightEdison

Denver, CO(888) 966-6377

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Solar Plus

Atlanta, GA(470) 378-1182

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Consulting on all things solar related.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Montgomery, AL Solar Panel Cost FAQs

  • As of September, 2024, the average solar panel installation cost in Montgomery, AL has reached $3.96/W. After the federal tax credit, the estimated cost for a 5 kW solar panel system in Montgomery, AL is roughly $13,860.

  • There are 4 rebates and incentives available in Alabama from a range of utility providers and government organizations. Additionally, the vast majority qualify for the 30% federal tax credit.

  • Even though cash payments provide the greatest savings, many financing options for solar panels today are also cost-effective. Installers will often include details on financing partners in the quotes they provide initially.

  • Yes, the typical payback time for 5 kW solar panel systems in Montgomery, AL is 6 years, and the expected electricity cost savings over 20 years is $30,372.
Alex Zdanov
Last Reviewed By: Alex Zdanov
Published: 2024-09-15