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Solar panels can save homeowners €24,000 in energy bills over 25 years, survey finds

Lenders actively encourage homeowners to make their properties more sustainable, according to broker Doddl.ie

Homeowners can sell unused solar power to the national grid. Energy suppliers currently pay rates starting at 20 cent per kilowatt for electricity exported to them. Photograph: iStock

Colin Gleeson
Tue Mar 19 2024 - 05:00

Homeowners who add solar panels to their homes could make net savings of more than €24,000 over 25 years after installation costs, a new survey from Swyft Energy suggests.

The Swyft Energy Solar PV Index also shows that a standard 12-panel system can pay for itself over a seven-year period.

With average Irish electricity market prices approximately 53 per cent higher than in 2021, plus the addition of export tariffs and VAT removal, the repayment period has dropped by almost half, from 12 years in 2021.

“The figures show that, on average, Irish householders could make net savings of €24,327 over the next 25 years by installing solar PV panels now,” said Swyft Energy chief executive Adrian Casey.

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The latest Index also highlights how unused power can be sold back to the national grid. Energy suppliers currently pay rates starting at 20 cent per kilowatt for electricity exported to them.

Mortgage broker doddl.ie said solar panels can help borrowers cut the cost of monthly repayments. “Lenders actively encourage homeowners to make their properties more sustainable,” said the group’s chief executive, Martina Hennessy.

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“Although the impact on a BER of adding solar panels is different for every property, the Sustainable Energy Authority of Ireland specifically recommends solar panels as a way to boost BER ratings,” she added.

“Green mortgages are not just for buyers – current mortgage holders could potentially benefit by switching from their existing arrangement.”

To date, more than 60,000 Irish homes have made the switch to solar. Pat O’Sullivan, from Ballintemple, Co Cork, said: “Following the reduction in the VAT rate to zero, solar panels became a no-brainer. We have a 2,500sq ft A1-rated house, which used on average 5,500 kilowatt hours per year.

“We installed 12 panels and a five kilowatt battery at a cost of just over €10,000. We switched to a night electricity rate and programmed the underfloor heating and hot water, washing machine, dishwater, to start at 2pm and finish at 8pm.

“Our usage has remained the same but the savings are over €1,800 per year.”

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter

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