According to Irish supplier Solartricity, investing in rooftop solar panels can offer returns five times greater than bank savings. With a grant from the Sustainable Energy Authority of Ireland, the payback period on the initial investment is typically under six years.
Comparing Solar Investment to Deposit Interest Rates
Investing in rooftop solar panels now offers a clear advantage for households, with returns far surpassing those from traditional bank savings. Solartricity, an Irish-owned wholesale supplier, recently compared the return on investment from solar panels with the deposit interest rates offered by Irish banks.
Rooftop solar panels (Image: Collected)
The company’s analysis found that solar panel investments offer returns five times greater than bank savings. Factoring in various system sizes and the Sustainable Energy Authority of Ireland’s domestic grant, homeowners typically pay off their initial investment within six years.
Solartricity’s calculations show an annualized return of approximately 17 percent, a figure that underscores the long-term profitability of solar energy. Payback periods can be even shorter in commercial and agricultural settings, thanks to higher energy consumption and additional grants.
Saving up to €13,408 Over 15 Years
Quentin Gargan, founder of Solartricity, highlighted the increasing adoption of solar technology across Ireland, noting it is not only an environmentally responsible choice but also a highly lucrative one for households, entrepreneurs, and farmers.
“Ireland’s rooftops are transforming into energy hubs, reflecting a dual commitment to reducing energy costs and combating climate change,” said Gargan.
“For households,” Gargan explained, “investing in a 4KWp system could result in savings of up to €13,408 over 15 years.” This translates to an impressive annualized return of 16.6 percent, significantly outperforming typical bank savings accounts that generally yield only 2 to 3 percent annually. “Investing in solar is not just about financial gain; it’s about making a meaningful contribution to Ireland’s climate goals,” Gargan added.
The affordability of solar panels has also improved dramatically in recent years, making them an increasingly attractive option. Government initiatives, such as VAT-free purchases and grants of around €2,100 for solar installations, further enhance the economic appeal of adopting this technology.
Banks’ Support
In response to the growing interest in sustainable home improvements, major Irish banks like AIB, Bank of Ireland, and PTSB have introduced favorable loan schemes. These initiatives make it easier to finance energy-efficient upgrades, including solar panels, with loans available from €5,000 to €75,000 at interest rates starting at 3 percent. This support has helped accelerate the widespread adoption of renewable energy solutions.
By comparison, the best savings accounts from banks offer returns between just 2 and 3 percent annually. “Many families consider the best way to save for a rainy day each year, but this analysis shows that investing in a sunny day can be far more beneficial,” said Mr. Gargan.
He stressed that no bank or financial institution offers anything close to that return on investment. “If a household has the money to invest in solar, there is hardly a better investment. Besides the financial benefit, you are also contributing positively to Ireland’s climate action,” he added.
As Ireland continues its transition to renewable energy, rooftop solar panels are becoming pivotal in reducing the country’s dependence on traditional electricity sources. A combination of financial incentives, technological advancements, and growing environmental awareness positions solar energy as a cornerstone of sustainable development.
For Irish households and businesses, investing in rooftop solar panels through providers like Solartricity offers a compelling opportunity to achieve significant financial returns while contributing to environmental sustainability. With ongoing support from technological and policy advancements, the economic advantages of solar are only expected to grow, making it a prudent choice for forward-thinking individuals and organizations.
