Solar panels have become an increasingly popular sight on rooftops across the globe. But with an initial investment, is solar energy a financially sound decision for homeowners in Northern Ireland? This blog post takes a look into the economic realities of solar power, exploring the costs, potential savings, and unique considerations for Northern Ireland residents.
Who said the best things in life aren’t free? They clearly didn’t consider sunlight. It’s abundant, it’s renewable, and the best part: it’s free. So, what does this mean when it comes to powering your home?
The Costs vs. The Savings
Solar panels come with an upfront cost – that’s a fact. But view it as an investment rather than an expense. Once installed, your shiny new solar panels start working for you, turning freely available sunlight into electricity to power your home. If you opt for a free site survey with First Class Solar, we can calculate your exact payback period using your current electric bills and the system design you are considering.
Let’s break it down
- Energy Bills: Solar panels significantly reduce your reliance on grid electricity. In some cases, homeowners can generate enough solar power to offset their entire energy bill. Often, customers with larger energy bills experience a shorter payback period—the more you’re spending on your electric, the more you stand to save with solar.
- Energy Independence: With a solar system, you’ve reduced your reliance on the grid. This means that any energy price hikes will have less of an effect on your wallet. Residential solar, paired with a home battery system, can bring you closer to energy independence.
- Property Value: Numerous studies suggest that homes equipped with solar energy systems have higher property values and sell quicker than non-solar homes.
Incentives: A Potential Cherry on Top
Let’s discuss financial incentives for going solar. While numerous governments worldwide offer perks such as grants or rebates to encourage the adoption of solar energy, the situation is a bit different here in Northern Ireland. At present, we don’t have any grants for residential solar, but that’s not the end of the story.
The Northern Irish government has set a goal to reach 80% of energy from renewables by 20305, which means making significant changes to the way we produce and consume energy. Given the key role solar power can play in achieving this goal, we are very hopeful that government incentives for solar energy may be introduced in the future.
In the meantime, here are two great factors to consider: residential solar is 0% VAT as of 1 May 2023, which means that for a £5,000 system, you’d be saving £1,000! Secondly, homeowners who generate more solar power than they consume can sell that excess energy back to the grid. As it stands, Power NI currently offers a rate of 14.22p per kilowatt-hour (kWh) for exporting this surplus energy. This not only contributes to a greener grid but can also help to offset your initial investment over time.
So, while we wait for potential official incentives, remember that the economic benefits of going solar – energy bill savings, energy independence, and increased property value – still make it an investment worth considering. Plus, every solar panel installed brings us one step closer to a greener, more sustainable future.
If you’d like to us to calculate the exact payback period for you, please do get in touch today!
