We already know that installing solar panels at home allows us to take advantage of the sun’s energy, which is 100% renewable and clean, as well as saving money on our electricity bill from day one.
But, despite their well-known environmental and economic benefits, one of the aspects that most concerns people who ask us for information about photovoltaic energy is the real cost-effectiveness of these systems. Is it really worth the investment? Let’s see!
Why installing solar panels is a good decision
Thanks to electricity self-consumption, you can reduce your household electricity bills by up to 60%. This is because having your own “mini power plant” will supply you with the energy you need on a daily basis at a much lower cost than conventional suppliers.
In addition, it allows you to be more autonomous and self-sufficient, reducing your dependence on electricity tariffs and not making you subject to the constant market fluctuations of energy prices.
In addition to this, if your system produces more energy than you consume, you will be able to return your surplus to the electricity grid, provided you have the appropriate permits. In this way, in addition to saving money, you will receive a rebate or an extra reduction on your bill.
Another reason why installing solar panels at home is profitable is that you can benefit from different direct and indirect subsidies. These include a 50% discount on your IBI (house, or council, taxes) for 5 years and up to a 40% discount on the installation applied to the IRPF (retained taxes) on your annual Income Tax Return (for installations in the Valencian Community).
Moreover, at a time when green energy is booming, this type of installation can increase the market value of your home by up to 5% (according to real estate platforms such as Zillow or REA Group, and institutions such as the Lawrence Berkeley National Lab).
Homes with photovoltaic panels also sell up to 20% faster, and they are one of the determining factors for buyers when they seek to make a purchase.
What is the cost-effectiveness of installing solar panels?
Now that we are clear about all the advantages, we would like to show you some figures relating to the real profitability of installing solar panels on a house.
In order to do so, we need to calculate when we will recoup the money invested in the system or, in other words, its payback period. We will do this by taking into account three aspects:
- The final cost of the installation.
- The savings on electricity bills.
- The net benefits of the installation from the time we recoup the investment until the end of its useful life.
To cover the annual electricity consumption of an average Spanish family (around 3,500 kWh per year), you will need to install six photovoltaic panels. In total, we are talking here about an average investment of €6,000.
On the other hand, it is estimated that the average saving on electricity bills with a self-consumption system in a single-family home is €700 per year (approximately €58 per month).
Based on this data, the amortisation period for solar panels is on average 5 to 8 years (depending on the other subsidies or deductions obtained).
Finally, the useful life of photovoltaic installations is around 25 years. If the amortisation is completed in 6 years, for example, we will have 19 years in which we will have only net benefits. With this data, we can affirm that installing solar panels on a house is indeed very profitable.
Now that we know it’s profitable… what’s holding you back?
Solar panels are becoming more and more familiar to us. However, the optimum performance of photovoltaic systems depends on factors such as their orientation and inclination, the quality of the panels and the installation, system losses, the calculation of the number of panels that each home needs, and the appropriate maintenance, which only professionals are able to calculate.
For this reason, if you are thinking about installing solar panels at home, our recommendation is that you only trust professional companies, such as MYGREENHOUSE. We make it easy for you. We will draw up a project for you and offer you different financing options. We also manage and process the permits and subsidies so that you don’t have to worry about a thing.
Do you want to make your home more energy-efficient and sustainable?