Home Q&A: Should I invest in solar photovoltaic panels?

Is solar photovoltaic (solar PV) still worth the spend? 

You should send out for at least three quotations to reputable local suppliers on the SEAI register nonetheless, and then contrast and compare the results. File pictures

There has been a significant cut in terms of solar photovoltaic (solar PV) grant aid, with the maximum allowable grant aid now at €2,100, down from €2,400. That works out at €800 per kWp up to 2kWp, €250 for every additional kWp up to 4kWp.

The Department of the Environment has always made it clear that the grant would be reduced year-on-year by €300 from 2024 to 2029 when there is no anticipated SEAI grant aid for domestic users. The original grant, including help for a battery, was €3,800, but by 2022 this had dipped to €2,400 as the grant was opened up to newer homes (occupied by 31 December 2020).

The government is leaning heavily into supports for non-domestic businesses and commercial developers. I love this technology, but it’s vital to go into the prospect of solar PV with your eyes open.

Solar PV, typical of many new technologies, has fallen in price, even in the face of rising construction prices all over the market. However, interviewed by RTÉ News, Pinergy Solar Electric chief executive Ronan Power, who is also a board member of the Irish Solar Energy Association, expressed disappointment. “We have seen the price of solar PV reduce and the Government incentives meant we saw a large uptake, that kind of momentum we should be supporting to keep it moving.”

The recent removal of VAT on solar systems seemed to be a shot in the arm, but I have noticed discontented rumbles on virtual discussion groups that potential buyers felt the potential flex to quotes would not be honoured by suppliers.

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Most suppliers will recommend sizing your array to your needs. Don’t get caught up in the competition to have a massive array if you feel at heart you don’t need one. 

Still, with the Microgeneration Support Scheme (MSS) offering up to 34c per kilowatt of surplus returned to the grid (SSE Airtricity with T&Cs), the pressure on customers to include a battery in their solar PV package has eased. In summer, the drip of surplus going back to the grid under the MSS offers a nice little credit per kWh that over the year, can pay off a consumer’s standing charge with a mid-sized array.

Using our domestic PV battery we download and store cheap power with time-of-use-tariffs and discharge up to 6.5kWh back to the house during a winter’s day, maximising our savings year-round, Otherwise, the battery is collecting pitifully from the roof-top array on these dark, dirty weeks.

Spoiler alert — there is no grant aid for a battery from the SEAI. All that said, don’t be talked into a battery by the well-intentioned anoraks of solar PV. It’s not always a logical or affordable inclusion. There is a lot of posturing online around the size of arrays, and the size of batteries, bulking out existing systems and optimising their performance. Most solar engineers and the SEAI encourage potential buyers to size the array to the needs of the household from the get-go.

The capital outlay for solar PV remains high, and the payback is relatively slow (find yours here). 

Most buyers will be forced into a green-loan product (3%-4% in the new government-backed loans arriving this month) or to take out significant savings to make the project possible. Taking away a battery can cut a quotation for a solar PV system in half. Customers can expect a cost of around €4,500-€5,800 for 4kWp-4.2kWp installed and commissioned after SEAI grant aid.

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The grant is retroactive except in the case of the one-stop-shop retrofit scheme. Putting a battery into the quote of 5kWh to 6kWh you can expect to pay as much as €9,000 to €11,000 upfront for a similar 4kWp to 4.2kWp (these are rough estimates). The quality of the system, its branding and efficiency, will alter these numbers, and you will need a follow-up BER to claim the grant.

These estimates do not include the SEAI grant award. This is redeemed by you within two-six weeks — so you must come up with that money up-front for the supplier. Water diverters (around €500 for a MyEnergi Eddi) are of arguable use — I do have one.

A sophisticated smart plug, it will divert dribbles of excess PV power to your hot water element. Great in summer, and all but useless in winter if you have a battery pleading for juice. So, with realistic payback periods for a moderate installation without a battery of six to nine years, why do it?

Anyone with a large enough roof at the right angle and unshaded aspect to take 2.4kWp-plus will benefit from solar PV. A properly detailed system can cover up to 30%-40% of a home’s electricity units, and a well-designed array on a south-facing roof can do much better. This 30% is based on kWh units and does not include standing charges, which must be paid as your system is grid-tied. When you sell, the presence of money-saving renewable technology will undoubtedly draw the attention of green-minded buyers.

The very best fit for a solar PV system is people at home during the day for long periods, using solar power in real-time, year-round. For remote workers, carers and retirees, the PV-solar is far from a passive experience. We respond to a brighter day with that extra load of washing or plugging in the EV or PHEV.

When using a system with a battery, even in winter, your appliances can take a sip from the battery, something from the grid and small amounts of gain from the solar PV — depressing the running cost of appliances, electric room heaters and even HPs.

Running washing machines and dryers sequentially can make use of daylight hours during which most people pay at least 40c per kWh. Of course, there are those worthy prompts too — a renewable energy source that’s also feeding a little green energy back to the nation.

There are a couple of motivators for solar PV that are overstated by enthusiastic hobbyists on social media. PV-solar, relying on light (not sunshine) is a seasonal performer. 

First of all, there’s the contribution of running a heat pump and electric heating. 

This gain (you are using the solar PV for running the house in general too) — is marginal with all but the largest south-facing solar PV arrays. Manage your expectations. 

Secondly, there is still a fantasy out there, that tout-seul, solar PV runs EV cars. It can contribute to the running of an EV car, but most owners rely almost entirely on cheap “boost” tariffs during the night. In the height of summer, a good array can drop up to 40% of the charge into a moderately sized EV battery — but that’s largely the experience of retiree EV owners.

When it comes to being actively “ripped off”, there is a perception, rampant on online discussion boards that suppliers of PV-solar and in particular heat-pump systems, are loading the bills whenever there is an expectation of an SEAI grant. It is important that you can trust your installer. There’s a great deal more transparency in terms of pricing than in 2019 when the systems were first grant-aided.

Quotes are generally given with the SEAI grant amount removed and should include an estimate of projected kWh gain for a year based on your county, the array size, any shading, and the aspect of your roof. Clip this rough kWh projection from your annual usage over the last 12 months using your last six bi-monthly power bills.

When approaching solar PV, there is no guarantee or warrant from the SEAI. You should send out for at least three quotations to reputable local suppliers on the SEAI register, and then contrast and compare the results.

Go to Trustpilot and Google Business to see how they are doing in client reviews, keeping in mind that feedback tends to be dominated by projects gone wrong. Follow-up service and reactivity to complaints? Vital. 

Together with going over the SEAI consumer hub and grant process on the website sea.ie read up on the code of practice for installers. This offers not only a snapshot of the design and installation process but also an idea of the standards they should hit. 

Join The Irish Solar Owners Group, on Facebook. The group has 51,000 members and you don’t need to be a solar PV owner to ask a hundred questions before during and after an installation.