July 9, 2024

Irish Firm Counts Multiple Gains From Solar Panels Investment

Investing in rooftop solar panels offers returns five times greater than bank savings, according to Irish supplier Solartricity. With the Sustainable Energy Authority of Ireland's grant, the payback period for the initial investment is usually under six years.

Comparing Solar Investment to Deposit Interest Rates

Investing in rooftop solar panels has become highly advantageous for households, surpassing the returns from traditional bank savings. Solartricity, an Irish-owned wholesale supplier, has conducted a comparison between the return on investment from solar panels and deposit interest rates in Irish banks.

Solartricity discovered that investing in solar panels offers returns five times greater than bank savings. When factoring in various system sizes and the Sustainable Energy Authority of Ireland's domestic grant, they found that the initial investment usually pays off within six years for homeowners.

Solartricity's calculations demonstrate an annualised return of approximately 17 percent from solar panel investments. This figure highlights the long-term profitability of solar energy systems, particularly in commercial and agricultural settings where higher energy consumption and additional grants further reduce payback periods.

Saving up to €13,408 Over 15 Years

Quentin Gargan, founder of Solartricity, with over 40 years of experience in environmental projects, emphasized the increasing adoption of solar technology across Ireland. He noted that not only is it an environmentally responsible choice but also a highly lucrative one for households, entrepreneurs, and farmers alike. "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 savings accounts offered by banks, which generally yield only 2 to 3 percent annually. Gargan pointed out, "Investing in solar is not just about financial gain; it's about making a meaningful contribution to Ireland's climate goals."

The affordability of solar panels has improved dramatically in recent years, making them an increasingly attractive option for homeowners. Government initiatives, such as VAT-free purchases and grants of approximately €2,100 for solar installations, further enhance the economic viability of adopting solar technology.

Banks’ Support

Major Irish banks like AIB, Bank of Ireland, and PTSB have introduced favourable loan schemes in response to the growing interest in sustainable home improvements. These initiatives aim to facilitate easier access to financing for energy-efficient upgrades, including solar panel installations. Homeowners can now secure loans starting at 3 percent interest, ranging from €5,000 to €75,000, thereby supporting the widespread adoption of renewable energy solutions.

In comparison, the best savings accounts from banks offer returns between 2 percent and 3 percent annually. "Many families each year consider the best way to save for a rainy day, but this analysis shows that investing in a sunny day can be far more beneficial," Mr. Gargan said.

He emphasized 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 towards renewable energy sources, the role of rooftop solar panels in reducing dependence on traditional electricity sources becomes increasingly pivotal. The combination of financial incentives, technological advancements, and growing environmental awareness positions solar energy as a cornerstone of sustainable development in the country.

Investing in rooftop solar panels through providers like Solartricity offers Irish households and businesses a compelling opportunity to achieve significant financial returns while contributing positively to environmental sustainability. As technological and policy advancements continue to support the adoption of solar energy, the economic advantages of investing in solar panels are expected to further strengthen, making it a prudent choice for forward-thinking individuals and organizations alike.

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