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3 Best Solar Companies in Alabama

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Written By Todays Homeowner Local Pros

Last Updated February 2024

With its sunny summer climate and growing economy, Alabama is a great place to use home solar panels. While the state's utility companies and Montgomery policymakers are still launching incentive opportunities, the Yellowhammer State comes fifth in the country for energy affordability, lowering your upfront costs and giving you a faster return on investment.

If you're ready to go solar in Alabama, these top solar companies can answer your questions and offer expert solutions.

Top 3 Best Solar Companies in Alabama

Eagle Solar & Light

Eagle Solar & Light Logo

Our Rating

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4005 2nd Ave S, Birmingham, AL 35222 (800) 982-0808 eaglesolarandlight.com

Reliable customer support

Free quotes

Clear pricing policy

Informative resources

Services Offered

Consultation
Solar panel upgrades
Residential panels
Commercial panels
Solar roof assessment

Solar Technology Alabama

Solar Technology Alabama Logo

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1206 Eva Rd, Eva, AL 35621 (256) 482-2063 solartechnologyalabama.com

Free quotes

Clear pricing policy

Informative resources

Reliable customer support

Services Offered

Commercial panels
Battery storage
Residential panels
Off-grid solar systems

Small Tech Solar

Small Tech Solar Logo

Our Rating

User Rating

2534 Mountain Cove, Hoover, AL 35226 (205) 862-9610 smalltechsolar.com

Reliable customer support

Free quotes

Clear pricing policy

Services Offered

Residential panels
Battery storage
Consultation
Today's Homeowner Ranking Methodology

Today's Homeowner looks at dozens of datapoints on solar companies to come up with our data-driven rankings. It's not possible for a company to pay for preferential treatment in our rankings. We look at the following key factors in determining who should top our list:

  • Company Experience
  • Real User Reviews
  • Company Reputation
  • Accreditations and Licenses
  • Service Area
  • Customer Service
Have questions about our methodology or company ratings? Reach out to FindAPro@TodaysHomeowner.com.

These 3 residential solar companies embody the highest level of professional achievement and responsibility in Alabama. You can trust they'll provide you with honest opinions, reasonable prices and estimates, and a safe, professional work environment. Our mission at Today's Homeowner is to empower you with the advice and techniques you need to keep your home in good shape. For jobs beyond the "DIY" scope, our contractor recommendations come from our combined years of home improvement experience. Click here for more information on how we rate local companies.

Annual Solar Facts For Alabama

Average Max Temp:

72°F

Average Min Temp:

54°F

Average Daily Sunlight:

60%

Average CO2 Savings Per 5kW System:

88lbs CO2e/yr

Average Monthly Precipitation:

4.54"

Average Solar Savings Per 5kW System:

$1,100/yr

The Main Types of Residential Solar Systems

Today's solar panels can accommodate different roof shapes, budgets and energy needs. Many of the companies on our list use all three of the fundamental types of solar panels, and they'll guide you toward the best option during the estimate process.

Monocrystalline

Monocrystalline panels use a single silicon crystal per cell, making them ideal for high efficiency in a small footprint. You can identify them by their black hue and rounded-looking cells. While they cost more upfront due to their more intricate manufacturing process, their efficiency means you'll save more money over the longer term.

Polycrystalline

If you're not concerned about efficiency as much as you are about cost, consider a polycrystalline array. These dark blue panels use a composite of multiple different silicon fragments in each cell, with less material wasted at the factory.

Despite the fact that you can design a fairly efficient system with polycrystalline panels, it'll have a greater physical footprint than a monocrystalline array at the same capacity.

Thin-film

Thin-film arrays are a great choice for value in more "partly sunny" areas of Alabama. They maintain efficiency as temperatures fluctuate and work with many different roof shapes. Thin-film solar panels use different metal alloys instead of silicon crystals. Some homeowners select them for their lower weight or ability to fit on non-rectangular roofs. Others pick them for their greater heat resistance and low-light performance.

However, they're less space-efficient than monocrystalline or polycrystalline panels, and you could have better-performing options if your property has high solar potential.

Solar Purchase Options

Adopting solar energy is a big investment. Once you and your installer agree on which type and model of panels to use, you can choose from a range of purchase options:

  • Solar leases: You can completely avoid down payments or upfront costs with a solar lease. Instead, you'll pay based on what the installer expects your panels will generate. Leases often include the cost of repairs and scheduled maintenance. If your panels don't reach their efficiency target in a certain month, you could receive a partial reimbursement. However, since the lease provider owns the panels, they can remove them if you decide to move. Your property's value won't increase with a lease, and you won't be able to take advantage of most state incentive programs.
  • Power purchase agreements (PPAs): With a power purchase agreement, your contractor will sell you the power your solar system generates for the length of the contract period. In exchange, they'll pay for the cost of the system. However, PPAs are long-term commitments, with some lasting 25 years. You might be subject to extra fees if you move out of your home or get out of the contract.
  • Solar financing: If you would prefer to get the fastest ROI, get some tax breaks, and take advantage of local incentives, consider a solar loan. New lenders specializing home energy projects have come onto the scene in the banking sector, and you could get rid of a down payment or interest with a good lender. While taking out a solar loan will increase your upfront costs, you'll have better long-term savings.
Your final bill will contain the cost of the panels, your installer's labor, subcontracted plumbing, electrical, and roofing work, and application fees if you choose to connect your panels to the grid. Different financing options are usually all-inclusive.

Residential Solar Incentives and Cost Support

You might be eligible for financial incentives for installing home solar panels, like the following:

  • Tax credits: The IRS gives a 30% tax credit on the value of your new solar equipment, so you should include Form 5695 with your federal returns for the year. Your state, county, or city could also provide similar income or property tax credits, or even exempt solar equipment for a period of time after installation.
  • Rebates: Contractors and governments often work with utility companies and equipment manufacturers, offering rebates to encourage people to transition to solar. If your contractor thinks you qualify for a rebate, it will help you fill out the application. If approved, you could receive the money directly or as a credit on your installation or utility bills.
  • Net metering: Though many states mandate net metering, others allow utility companies to voluntarily participate to increase their renewable capacity and add an additional layer of energy security. Once you sign up for net metering, you'll send your excess solar power to the local grid. In exchange, your utility will credit you at the retail, wholesale, or avoided-cost rate.
  • Net billing: Some utilities and electrical co-ops have switched from net metering to net billing. Net billing participants sell their excess generation wholesale, with small houses receiving compensation at the same rate as large solar farms.

Solar Energy By the Numbers in Alabama

With each day full of sun, the solar energy market in Alabama has a perpetually bright outlook. Discover some key statistics about solar in your state:

  • A five-kilowatt solar energy system in Alabama has an average payback period of 8.7 years. That said, a system at that capacity would also save you $1,121.12 on your energy bill.
  • Alabama generates 11 MW of residential solar energy, serving 14,710 homes and growing.
  • In Alabama, the average new home solar array is rated for up to 8.9 kW and costs $21,848.
  • Without solar, the average family spends about $2,046 every year on their energy bill.
  • Solar energy has enabled the creation of 707 jobs in Alabama, with more added as companies grow and technology continues to improve.

Useful Resources

Want more information on Alabama's solar opportunities, incentives, and regulations? Visit these online pages and reference guides:

  • DSIRE: One of the most comprehensive solar incentive databases available is DSIRE. You can find a tailored list of rebates based on your address, electric company, and the type of solar system you're installing. Remember that these programs may change as policymakers update their budgets and targets. Don't forget to ask your contractor about the incentive programs they participate in and which others you might qualify for.
  • PVWatts: PVWatts is a useful online tool that lets you virtually try out different solar arrangements on your property. You can find out how much energy your panels would produce and determine which orientations would give you the best ROI.
  • Solar companies by city: You can find Today's Homeowner solar company recommendations specific to your city, including the following larger areas in your state: BIRMINGHAM,AL, HUNTSVILLE,AL, MONTGOMERY,AL, MOBILE,AL and TUSCALOOSA,AL.

Alabama Solar Incentives Guide

Incentive Type: Property Tax Incentive

Website: revenue.alabama.gov

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.

Frequently Asked Questions About Solar in Alabama

A solar water heating system might be the best place to start if you don't have much roof space or want to install fewer panels. However, if you have the space and budget for a photovoltaic array that can power your entire home, you'll have the best possible versatility and value.

When it comes to your energy options, solar is the most flexible. You can rely on it to power your appliances and light fixtures, or use it as you need it to support your HVAC system or water heater. It's easy to expand a solar array if you need more capacity, and you'll usually be able to send energy back to the local grid for credit.

There are three available types of solar panels: monocrystalline, polycrystalline, and thin-film. Each type has different characteristics and disadvantages that make it ideal for certain applications. Monocrystalline panels are best for efficiency, while other types may be better if you're on a tight budget or are dealing with a uniquely-shaped roof.

Before hiring any contractor, you should verify their credentials and experience to ensure they're qualified for your project. A quality contractor will keep an unobtrusive and safe work environment, find ways to minimize your costs without compromising on safety or efficiency, and practice clear and regular communication.

In Alabama, homeowners with a 5 kW solar system can expect to cut $1,121.12 from their bills per year. Based on the capacity and efficiency of your solar array, you could save thousands of dollars on your energy bills over the life of the panels.

With progress and innovations, solar energy has become viable in many more places. However, the amount of sunlight your area gets is still the most impactful factor determining solar viability. In Alabama, the number of hours of direct sunlight per day is above the national average, meaning your system can perform at its best with less effort.

Net metering is the system that rewards homeowners for selling excess solar energy back to the grid. When you install solar panels, you'll typically have two meters — one that tracks the power generated by your panels and another that tracks how much energy you are using from or sending to the grid. Your utility will credit you at the avoided-cost, wholesale and retail rate for power you route back to the grid.

It likely will. Many insurance companies provide benefits to their customers if something happens to their solar array, so long as it was added to the policy before the accident. Before purchasing your new system, you should contact your insurer for the specifics about what your policy will cover. It's crucial to note that since solar panels add value to your home, your premium will increase.

Find a Solar Company In Alabama