Are Solar Panels Worth It in Ireland ?
Published Date:31.07.2024
With the increasing push towards renewable energy, the question on many homeowners' minds is whether solar panels are a worthwhile investment in Ireland in 2024. This article delves into the costs, potential savings, and overall value of installing domestic solar panels.
The Cost of Solar Energy
Initial Investment:
One of the first considerations when contemplating solar panels is the cost. The price of a solar panel system varies depending on the size of your home and the system you choose. In Ireland, the average cost for a 3.5kWp system is approximately €8,000, but this can rise to €10,000 or more for larger systems. These figures include the cost of the panels and installation, which involves specialist labor and sometimes additional expenses such as scaffolding. Financing options may be available to help manage these costs.
Long-Term Savings:
Despite the steep initial investment, solar panels can offer substantial long-term savings. On average, it takes about 15 years to recoup the cost of the investment through savings on electricity bills. However, the panels can increase your property value and make your home more attractive to potential buyers.
Renewable Energy and SEG Benefits
Solar panels can potentially meet all your energy needs, making your home energy self-sufficient. Additionally, you can benefit from the government’s Smart Export Guarantee (SEG), which allows you to sell excess energy back to the national grid. The SEG replaced the older feed-in tariff and pays for energy that is not used by the homeowner but returned to the grid.
Comparing SEG Deals:
Different energy suppliers offer varying SEG rates, so it is beneficial to compare deals. Those planning to stay in their homes long-term might also consider pairing solar panels with solar batteries to store excess energy, which can further reduce reliance on the grid and extend savings, albeit with a longer payback period.
Value for Money
Over the last decade, the cost of solar power has decreased significantly. Solar power is now considered one of the cheapest energy sources. Given the volatility of gas prices and growing environmental concerns, solar panels are expected to become even more cost-effective.
Cutting Down on Energy Bills:
Once installed, solar panels start saving you money immediately. A standard 3.5kWp system can save between €175 and €600 annually on energy bills, depending on your energy consumption and reliance on the grid. These savings vary based on how much energy your system generates versus your total consumption.
Earning Through SEG:
Homeowners generating excess energy can sign up for an SEG tariff, earning money for the energy they produce. This often results in credits on electricity bills. To participate in the SEG, you will need an inverter to convert solar energy into the AC electricity used by the grid.
The Role of Solar Batteries
Solar batteries, which start at around €4,500, allow you to store surplus energy for later use or to sell back to the grid. While they extend the time to break even, they are valuable for those aiming for energy self-sufficiency and further reducing grid reliance.
Conclusion
Investing in solar panels requires a careful consideration of costs, potential savings, and long-term energy goals. With the decreasing cost of solar technology and incentives like the SEG, solar panels are becoming an increasingly attractive option for homeowners looking to lower their carbon footprint and electricity bills. For many, solar panels represent a step towards a greener, more cost-effective future, moving away from fossil fuels.
As we explore the benefits and costs of solar panels, it becomes clear that while the initial investment is significant, the long-term savings, sustainable living, and potential return on investment make them a viable option for many households in Ireland.