With the increasing focus on renewable energy and carbon footprint reduction, Flogreen offers premium solar panel installations for homeowners in Ireland.
In this blog post, we will break down the costs, returns, and payback period of solar panel installations, taking into account the 0% VAT rate on solar panels and installations that will be effective from May 1st, 2023.
We will also discuss the potential electricity generated, carbon footprint reduction, and other benefits of going solar in Ireland.
Solar Panel Installation Prices at a Glance
| House Size | Cost (after SEAI grant) | Solar Array Size |
|---|---|---|
| 2-bed terraced | €4,236 | 3.28 kWp (8 x 410w panels) |
| 3-bed semi-detach | €4,777 | 4.1 kWp (10 x 410w panels) |
| 4-bed detached | €5,354 | 4.92 kWp (12 x 410w panels) |
| 6-bed detached | €6,589 | 6.56 kWp (16 x 410w panels) |
This table provides an overview of the costs for solar panel installations for various house sizes, including the cost after the SEAI grant, and the size of the solar array. It’s important to note that these prices include both the equipment and installation costs.
Adding a standard-sized solar storage battery (5.1kWh) would add around €3,600 – €4,000 to the price, which includes the hybrid inverter needed to work with the battery.
Disclaimer and Realistic Expectations
The information provided in this blog post is intended to serve as a rough guide to help you decide whether you’d like to have a discussion about installing solar PV panels on your house.
Each property is unique, and if solar power appeals to you, we would provide a unique quote (for free) after visiting the property. Get started here >
This allows us to do a proper system design and calculate accurate numbers for you.
The numbers presented in this blog are realistic for average domestic solar panel installations in Ireland in 2023.
We have not rounded down the prices or rounded up the production numbers. These represent average installations of household solar PV systems.
We hope this information helps you in deciding whether to have that conversation about adding solar panels to your home.
Detailed Cost and Performance Analysis for Different House Sizes
A. Two-bedroom terraced house
For a typical two-bedroom terraced house in the midlands of Ireland, we assume a 3.28 kWp solar array system. The cost to the homeowner would be €4,237, factoring in the SEAI grant of €2,184.
This system can generate around 2856 kWh per year, with a rate of return on investment (RRI) of 34.6%.
The payback period is approximately 3 years and 2 months, with an annual CO2 saving of 994 kg.
B. Three-bedroom semi-detached house
A three-bedroom semi-detached house in the midlands of Ireland can fit a 4.1 kWp solar array system. The cost to the homeowner would be €4,749, after the SEAI grant of €2,400.
This system can generate around 3573 kWh per year, with a rate of return on investment (RRI) of 37.2%.
The payback period is approximately 3 years, with an annual CO2 saving of 1,000 kg.
C. Four-bedroom detached house
For a typical four-bedroom detached house in the midlands of Ireland, a 4.92 kWp solar array system is suitable. The cost to the homeowner would be €5,354, after the SEAI grant of €2,400.
This system can generate around 4520 kWh per year, with a rate of return on investment (RRI) of 31.5%.
The payback period is approximately 3 years and 6 months, with an annual CO2 saving of 2,000 kg.
D. Six-bedroom detached house
A six-bedroom detached house in the midlands of Ireland can accommodate a 7.36 kWp solar array system. The cost to the homeowner would be €8,137, after the SEAI grant of €2,400.
This system can generate around 6,476 kWh per year, with a rate of return on investment (RRI) of 28.4%.
The payback period is approximately 4 years, with an annual CO2 saving of 3,000 kg.
Chart overview:
*Note: CO2 savings equivalent includes trees planted and flights from Dublin to New York.
| House Size | Generation (kWh/year) | Payback Period | Rate of Return on Investment | CO2 Saved (kg/year) | CO2 Savings Equivalent |
|---|---|---|---|---|---|
| 2-bed terraced | 2,856 | 3 years 2 months | 34.6% | 994 | 191 trees / 1 flight |
| 3-bed semi-detach | 3,573 | 3 years | 37.2% | 1,000 | 239 trees / 1.08 flights |
| 4-bed detached | 4,520 | 3 years 6 months | 31.5% | 2,000 | 302 trees / 1.28 flights |
| 6-bed detached | 5,710 | 2 years 11 months | 37.5% | 2,000 | 382 trees / 1.64 flights |
Want to see the costs and saving for your home? Get a free solar installation quotation here >
Financial Incentives for Solar Panel Installation in Ireland
A. SEAI grant
The Sustainable Energy Authority of Ireland (SEAI) offers a grant to help reduce the cost of solar PV installations for homeowners. The grant amount depends on the size of the solar PV system, with a maximum grant amount of €2,400 for systems over 2 kWp.
To be eligible for the grant, you must meet specific requirements, such as using an SEAI-registered contractor and having a building energy rating (BER) assessment carried out after the installation.
B. 0% VAT rate
Starting from May 1st, 2023, solar panels and installations are exempt from VAT in Ireland. This exemption significantly reduces the cost of installing solar PV systems, making it more accessible for homeowners to invest in solar energy.
C. Microgeneration Support Scheme (MSS)
The Irish government’s Microgeneration Support Scheme (MSS) is designed to encourage homeowners and small businesses to generate their electricity through renewable sources like solar PV. Under this scheme, participants can sell their excess generated electricity back to the grid at a guaranteed rate. This not only helps to offset the cost of the solar PV system but also promotes the use of clean energy in Ireland.
To participate in the MSS, you must meet specific eligibility criteria and use an approved microgeneration technology.
D. Home Renovation Incentive (HRI) tax credit
The Home Renovation Incentive (HRI) is a tax relief scheme for homeowners undertaking qualifying home improvement projects, including solar panel installations.
The tax credit is equal to 13.5% of the qualifying expenditure, up to a maximum credit of €4,050.
To be eligible, you must use a HRI-registered contractor and the installation must be carried out between October 25th, 2013, and December 31st, 2023.
Environmental Benefits of Solar Power in Ireland
A. Carbon footprint reduction
By generating clean electricity through solar panels, homeowners in Ireland can significantly reduce their carbon footprint. Solar PV systems produce no harmful emissions or pollutants, contributing to cleaner air and a healthier environment.
The amount of CO2 saved depends on the size of the system and the amount of electricity generated.
B. Promoting renewable energy
Investing in solar power contributes to the growth of the renewable energy sector in Ireland. By adopting solar energy, homeowners help reduce the country’s dependence on fossil fuels and promote the use of cleaner, more sustainable energy sources.
C. Energy independence
Solar PV systems allow homeowners to generate a portion of their electricity, reducing their reliance on grid-supplied power. This energy independence provides a sense of security and stability, knowing that a part of their energy needs is met through a clean, renewable source.
Conclusion:
Solar power is an increasingly attractive investment for homeowners in Ireland, with significant financial incentives and environmental benefits. This comprehensive guide has provided an overview of the costs, returns, and incentives associated with solar panel installations, as well as the potential electricity generated and the resulting carbon footprint reduction.
By investing in solar power, homeowners in Ireland can not only save money on their energy bills but also contribute to a cleaner, more sustainable future for the country.
