Choosing to install solar panels can be a smart investment that ends up saving you money on your electricity bills over time. Not to mention, with more homeowners considering energy efficiency when purchasing a house and businesses factoring in sustainability when renting a new premises, solar PV panels can also increase property value in the future.
There’s no straightforward answer to how quickly Solar Photovoltaic (PV) systems will pay for themselves, as it depends on several different factors, such as energy use, system size, solar grant payments and electricity tariffs. Understanding these factors can help you determine how quickly you can recoup the upfront costs of installing solar panels in Ireland.
What Does ‘Pay for Themselves’ Really Mean?
When solar PV panels “pay for themselves,” it means the money saved on electricity bills or made from selling power back to the grid adds up to offset the money spent to purchase them in the first place. Once you break even, every euro saved will become extra disposable income and the ongoing electricity generated from the panels effectively becomes free for the rest of their lifespan. This term is commonly known as the “payback period” and is a common way of measuring the value of investing in solar PV energy.
Factors Impacting the Payback Period
Some of the main factors that influence how long it takes for solar PV panels to pay for themselves include the following:
System Cost
The total cost of installing solar panels in Ireland will usually be somewhere between €5,000 and €16,000, depending on the size of the solar PV system and whether you’re interested in battery storage or automatic power cut protection. This figure covers not only the cost of the solar PV panels, but also the installation, labour warranty, real-time monitoring and a Building Energy Rating (BER) assessment. Investing in quality equipment and installation can maximise energy generation, reduce maintenance needs, and speed up the payback period.
SEAI Grants
To reduce how much solar panels cost in Ireland, the Sustainable Energy Authority Of Ireland (SEAI) offers solar panel grants up to a maximum of €1,800 for homes with batteries. The grant amount you receive will depend on the size of your solar PV panel system: €900 per kWp for the first 2kWp, and €300 for every additional kWp. SEAI solar grant amount for solar panels in Ireland can significantly reduce upfront costs, and experienced solar PV panel companies will often handle the solar electricity grant application on your behalf as part of their service.
Energy Usage Patterns
Ultimately, the more electricity you use when the sun is shining, the quicker a solar PV system will pay for itself. If you use high-energy appliances like dishwashers and tumble dryers, or electric vehicle charging stations during peak solar energy hours, you will see a faster return on investment. Using appliances on timers can be a great way to ensure they’re running in the middle of the day when your panels are generating the most power.
Battery Storage
When you usually use energy outside of peak hours, it can be beneficial to add a solar energy battery to your PV system. Although battery storage can increase upfront costs, it lets you store excess energy for later use. Instead of sending all excess energy back into the grid, you can use it to run your appliances in the evenings. For some high-usage or off-peak properties, batteries can noticeably accelerate the payback timeline.
System Size and Quality
Larger solar PV panel systems, or those using brands that are proven to perform well over time, often have shorter payback periods. While you may pay more for reliable panels from brands like Jinko, Huasun, Aiko and Astro, they are typically more efficient and make each kWh generated less expensive over time. Investing in a suitably sized system and trusted brands with lengthy warranties can ensure consistent performance and reliability.
Electricity Prices
As you may expect, the savings you make from investing in solar panels in Ireland are directly linked to the cost of electricity. As energy prices are continually rising, each unit of solar-generated electricity will help to offset a comparatively high bill. The value example solar PV will likely continue to increase over the years.
Export Tariff
Any surplus renewable electricity generated can be exported back to the grid, and the Clean Export Guarantee (CEG) in Ireland will help speed up the payback period. However, since the payment you receive is intended to reflect the wholesale market value of the electricity, it’s usually best to use as much solar PV power as possible yourself. Selling to the grid typically earns less than the savings from self-consumption.
Commercial vs Domestic Installations
Generally speaking, commercial properties recover their investment faster than households. This is because they have larger systems and typically use more electricity during daylight hours when panels are most productive. Maximising savings and getting the best value from every solar PV unit produced will speed up how long it takes solar PV panels to pay for themselves.
Real-World Examples of Payback Periods
To give you more of an insight into how long it takes for solar panel systems to pay for themselves and how much Abhaile Solar customers are really saving over time, here are some real-world examples. Each of these systems was designed to suit the customer’s individual needs and energy use, and because we only use panels with a 30-year warranty, the lifetime savings are substantial.
System 1
- We installed 11 panels with a 5kW inverter, but no battery.
- 112% of the customer’s energy usage is covered by solar power.
- The payback time was 4 years and 5 months.
- The estimated lifetime savings are over €27,300, excluding the solar system cost.
System 2
- We installed 20 panels, a 5kW inverter, and a 9kWh battery.
- 118% of the customer’s energy usage is covered by solar power.
- The payback time was 5 years and 1 month.
- The estimated lifetime savings are over €40,000.
System 3
- We installed 22 panels, a 5kW inverter, and a 9kWh battery.
- 107% of the customer’s energy usage is covered by solar power.
- The payback time was 5 years and 5 months.
- The estimated lifetime savings are over €40,000.
System 4
- We installed 22 panels, a 5kW inverter, and a 15kWh battery.
- 113% of the customer’s energy usage is covered by solar power.
- The payback time was 5 years and 5 months.
- The estimated lifetime savings are nearly €50,000.
Price Transparency with Abhaile Solar
At Abhaile Solar, we know it can be difficult to find out how much solar panels cost in Ireland, so we are proud to be completely transparent about our pricing. We’ve listed four of our most popular packages on our website, and you can see exactly what’s included: from the initial consultation and tailored solar panel systems design, to the SEAI solar electricity grant application, supply and installation, real-time monitoring, and post-installation support.
Unlike other solar panel companies in Ireland, there are no surprises when you choose Abhaile Solar, just straightforward value for every budget and energy need. You can be confident that we only use the best brands, and we are so confident in our service that we also offer a 5-year labour warranty as standard. If you’re interested in getting solar panels installed at a reasonable solar panel cost or you’d like a free, no-obligation consultation to discover how much you could save, get in touch with us today.