Payback for solar panels at six years

The average household can achieve freedom from costly electricity bills in just over six years by converting to solar panels, the latest Swyft Energy Solar PV Index has found.

With electricity prices still at around 40% higher than their 2021 level, a combination of supports and the ability to sell back to the grid means that the payback time for an average household unit has halved from just two years ago.

The first national solar index charts how long it will take to recoup the cost of a 12-panel solar PV (photovoltaic) system, less grants and VAT cuts – a figure that stood at 12 years in 2021.

Solar PV technology allows householders to generate their own clean energy, saving up to 70% on the cost of an annual electricity bill when combined with battery storage, and to sell excess power back to the grid.

The index assumes that 50% of electricity generated from an optimally installed 12-panel system is consumed on site, with the remainder sold back to the grid.

Taking into account a 15% reduction in electricity bills this winter, and building in annual variations going forward, householders who install solar will make net savings of €27,117 over 25 years, compared to paying for their power from the grid.

Systems that use a battery and charge it at a night rate can save €34,108 over 25 years, with payback achieved in just over six years, the Index has found.

Index author Adrian Casey, co-founder of one of Ireland’s largest solar PV companies Swyft Energy, said that State supports for solar PV installation, with the combination of VAT removal, the SEAI grant and the ability to sell back to grid, make this the optimum time for solar adoption.

“Installations take one to two days and you instantly see savings on your bills,” he said.

Over 60,000 Irish homes have now installed solar PV and the State’s targets for solar PV are set at 8GW by 2030.