Solar Panel Cost And Return in Ireland: Complete Guide for 2023

Joe Brennan
Feb 21, 2023

Are your energy bills skyrocketing, leaving you worried about your budget? You’re not alone. Many homeowners in Ireland are seeking a sustainable solution. Imagine harnessing the power of the sun, transforming your home into an energy-saving powerhouse with solar panels. Dive into our comprehensive guide on solar panel costs and returns, and uncover how this investment can lead to significant savings over time. Let’s explore the ins and outs of going solar in Ireland.

The Basics of Solar Panels

Before delving into the specifics of cost and return, it’s crucial to understand what solar panels are and how they work.

What Are Solar Panels?

Solar panels, or photovoltaic (PV) modules, are devices that convert sunlight into electricity. They are made of solar cells, usually composed of silicon, which absorb sunlight and convert it into electricity through a process known as the photovoltaic effect.

How Do Solar Panels Work?

Solar panels work by allowing particles of light, or photons, to knock electrons free from atoms, generating a flow of electricity. When sunlight hits the solar panel, the panel converts this light into direct current (DC) electricity. The DC electricity is then converted into alternating current (AC) by an inverter, which can be used to power your home.

The Cost of Solar Panels in Ireland

The cost of solar panels varies depending on several factors, including the size of the solar panel system, the type of panels, and the installation costs.

Size of the Solar Panel System

The size of the solar panel system you choose will significantly impact the cost. Systems are typically sized in kilowatts (kW). In Ireland, a typical home installation ranges from 1kW to 4kW. The more kW, the more the system can generate, and the more it will cost.

Type of Solar Panels

There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline panels are the most efficient but also the most expensive. Polycrystalline panels offer a balance between cost and efficiency, while thin-film panels are the least expensive but also the least efficient.

Installation Costs

Installation costs can vary widely, depending on the complexity of the installation and any additional equipment required, such as inverters and battery storage systems.

Financial Returns from Solar Panels

The return on investment from solar panels comes from the electricity they generate and the savings you make on your electricity bills.

Savings on Electricity Bills

Once installed, solar panels can significantly reduce electricity bills. The exact savings will depend on your electricity usage and the size of your solar panel system. The more electricity your system produces, the less you’ll need to buy from the grid.

Selling Surplus Electricity Back to the Grid

In Ireland, homeowners with solar panels can now sell any surplus electricity they generate back to the grid. This is known as the Microgeneration Support Scheme (MSS), and it can significantly boost the financial return of your solar panel system.

The Clean Export Premium (CEP) rate under MSS is €0.135/kWh for projects between 6kW and 50kW. The electricity supplier determines the CEP rate at a competitive market rate for smaller projects.

The Role of SEAI Grants in Reducing Solar Panel Costs

The Sustainable Energy Authority of Ireland (SEAI) provides grants to homeowners to reduce the cost of installing solar panels. The grant amount depends on the size of the system:

  • €900 for 1kW
  • €1800 for 2kW
  • €2100 for 3kW
  • €2400 for 4kW

The maximum grant offered is €2400. This assistance can significantly reduce the initial investment required for solar panel installation.

Calculating Solar Panel Cost and Return

To calculate the cost and return of a solar panel system, you need to consider the upfront costs, ongoing maintenance costs, the savings you’ll make on your electricity bills, and any income from selling surplus electricity.

Upfront Costs

The upfront costs include the cost of the solar panels, installation, and any additional equipment like inverters and batteries.

Ongoing Costs

Ongoing costs include maintenance and potential repair costs. Solar panels are generally low maintenance, but it’s good to factor in some costs for potential repairs and routine checks .

Savings on Electricity Bills

Your savings will depend on the size of your solar panel system and your electricity usage. As a rough estimate, a 4kW system could save you around €400 to €600 per year on electricity bills.

Income from Surplus Electricity

If you can sell surplus electricity back to the grid under the Microgeneration Support Scheme (MSS), this can significantly increase your return. The exact amount will depend on the rate offered by the energy supplier and the amount of surplus electricity you generate.

What Can You Expect? Solar Panel Cost and Return Analysis

To give you a clearer picture of the cost and return for different solar system sizes, let’s consider the following scenarios:

  • For a 2kW system, you can expect an approximate cost of €4000-5000 and an SEAI grant of €1800. The details are as follows:
    • Net Cost: €2200-3200
    • Estimated Annual Savings: €200-300
    • Payback Period: 8-14 years
  • For a 3kW system, you can expect an approximate cost of €6000-7500 and an SEAI grant of €2100. The details are as follows:
    • Net Cost: €3900-5400
    • Estimated Annual Savings: €300-450
    • Payback Period: 8-12 years
  • For a 4kW system, you can expect an approximate cost of €8000-10000 and an SEAI grant of €2400. The details are as follows:
    • Net Cost: €5600-7600
    • Estimated Annual Savings: €400-600
    • Payback Period: 7-11 years
  • For a 6kW system, you can expect an approximate cost of €12000-15000 and an SEAI grant of €2400. The details are as follows:
    • Net Cost: €9600-12600
    • Estimated Annual Savings: €600-900
    • Payback Period: 7-11 years

Why Choose Going Solar for Your Solar Panel Installation?

Unmatched Expertise

At Going Solar, we pride ourselves on our extensive experience and proven track record in solar panel installation across Ireland. Our team of professionals consistently deliver high-quality, efficient services.

Personalised Solutions

Understanding that every home has unique energy needs, our experts work closely with you to identify and install the optimal size and type of solar panel system for your specific circumstances.

Comprehensive Financial Guidance

Beyond installation, Going Solar assists clients in maximising their investment. We provide thorough guidance on the financial benefits of solar power, including understanding and leveraging the Microgeneration Support Scheme (MSS).

Post-Installation Support

Our commitment to our clients doesn’t end with installation. We offer continued support, ensuring your system operates efficiently and that any concerns are promptly addressed.

Start Your Journey Towards Sustainable Energy Today!

Wondering how to tap into the benefits of solar panel cost and return? The team at Going Solar is ready to guide you every step of the way. We promise a smooth switch to solar energy, helping you enjoy the benefits faster. Get in touch today and start your journey towards sustainable, money-saving energy. It’s one small step for you, one giant leap towards a greener planet.

Planning a switch to solar energy?

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Frequently Asked Questions

Is solar PV worth the investment in Ireland?

Yes, solar PV is worth the investment in Ireland. With the help of SEAI grants and the Microgeneration Support Scheme (MSS), the initial solar panel installation costs can be offset. In addition, the savings on electricity bills and potential income from selling surplus electricity can make solar panels a valuable long-term investment.

What is the rate of return on solar panels?

The rate of return on solar panels depends on various factors, including the size of your solar panel system, your electricity consumption, the cost of the system, and the income generated from selling excess electricity back to the grid. Generally, in Ireland, the payback period ranges between 7 and 15 years, after which you can enjoy free electricity and even earn from the surplus generation.

How much money can you make selling electricity back to the grid in Ireland?

Under the Microgeneration Support Scheme (MSS), Irish homeowners can return their surplus electricity to the grid. The amount of money you can make depends on the Clean Export Premium (CEP) rate offered by your energy supplier and the amount of surplus electricity your system generates.

How much money do you save with solar panels in Ireland?

Savings from solar panels come in the form of reduced electricity bills. On average, a 4kW system could save you between €400 to €600 per year on electricity bills. These savings and the potential income from selling surplus electricity make solar panels a cost-effective solution for your energy needs.

What is the average cost of installing solar panels in Ireland?

The average cost of installing solar panels in Ireland can range between €4,000 to €9,000, depending on the system size and other factors such as the type of panels and any additional equipment.

Can you make money from solar panels in Ireland?

Yes, you can make money from solar panels in Ireland. With the micro-generation scheme, homeowners can sell the excess electricity they generate back to the grid. Additionally, solar panels can substantially reduce your electricity bills, providing long-term savings.

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*FYI, parts of this blog post were drafted by artificial technlogy. But rest assured, it's been thoroughly researched, edited, reviewed and me & my team.
Author Fahad Zahid
Founder @ Going Solar

Joe Brennan, the founder of Going Solar, is dedicated to making solar power mainstream in Ireland and meet SEAI objectives. With a focus on affordability and sustainability, he is bringing renewable energy solutions to homes, reducing costs & environmental impact.