Solar Panels or Savings - which will give you more back?
Solar panels are a smart investment that start paying dividends straight away - more than savings in a bank
Solar Panels or Savings: Introduction
Energlaze has installed thousands of solar pv panel systems across Ireland over the past decade. Solar PV systems have proven to be a great investment for homeowners delivering much more in return than they would get in a traditional bank.
Solar panels significantly reduce energy bills and make a positive contribution to the environment by reducing CO2 for homeowners by powering homes with free, renewable solar energy.
Despite the availability of excellent SEAI grants (up to €2,100) and competitive financing, some customers are still unsure about whether to invest in solar panels or not.
One of the main factors to consider when deciding on installing a solar panel system is the payback period versus the return on your capital, if for instance, you have money on deposit in a financial institution. This is something we will help to clarify and leave you in no doubt that solar is the better investment over time.
Proportion of interest rates passed on to customers (%)
The payback period for solar panels
The initial outlay for a solar panel system may seem expensive but it has many benefits. Those benefits include an immediate and significant reduction of energy bills and an accelerated payback period.
As soon as you install solar panels you will notice your electricity bills reducing. The cost of the installation will be totally recouped over time through reduced energy costs and payments from your energy supplier for any unused electricity sent back to the grid (Microgeneration scheme).
What do we mean by payback period? This is when the savings you have made from solar (i.e. reduction in energy bills) equals the initial cost of the solar PV installation. With rising energy costs due to a volatile market, contributed to by world events, this payback period has dramatically shortened and has proven to be a surefire investment.
Solar panel payback in less than six years
In 2020 the SEAI, who are the sustainable energy authority of Ireland, suggested that solar payback period would be approximately 12 years. The Irish government now estimates that the average payback period is around six years, a 100% reduction in just a few short years. This could shorten again if energy prices spike significantly again due to a contributing world event, like war.
The main reasons for the shorter payback period for solar systems are four-fold
- rocketing energy prices*
- the removal of VAT on solar systems
- payment for unused energy generated (Microgeneration scheme)
- substantial SEAI solar grant
*Wholesale price of electricity in Ireland has roughly doubled over the past four years, with a kilowatt of energy now costing 33 cents and has jumped as high as 46 cent last year (2023). Sources: SEAI and Green Party
Increase in average household electricity prices
Solar Panels or Savings: Conclusion
The average cost of a solar PV panel system installation in Ireland is between €5,000 and €9,000 (after grants). The SEAI estimate that an average family home in Ireland can reduce their electricity bill by 40% by installing between four and six solar panels. This is at the smaller end of the scale. A larger system can deliver even better payback – especially with the premium Huawei technology used by Energlaze that optimizes energy production and oversized systems.
Installing a more typical 10 solar panel system will have a nominal output of 4.4 kWp (kilowatts peak) solar system will cost around €6,300 (after the SEAI grant) and will produce on average over 50% of your homes annual energy electricity costs.
An important note regarding SEAI grants
The grants are for solar are set to decrease again. They are currently up to €2,100 and it is planned to decrease annually by €300. Therefore, the maximum grant for solar in 2025 could be €1,800. Energlaze is a registered SEAI installer.
To conclude, don’t put it off any longer, contact Energlaze today for a free survey and quote and ensure you get the maximum SEAI grant available. And don’t miss out on all the other benefits on offer for installing a solar PV system. Because the sooner you invest in solar, the quicker your system will pay for itself.
