Why get solar panels?
In recent years, there has been a growing interest in renewable energy sources such as solar panels, especially for homeowners looking to reduce their carbon footprint and lower their energy bills. Solar panels are a clean and sustainable source of energy that can provide numerous benefits for your home and the environment. The SEAI have significant grants on offer and the Clean Export Guarantee (CEG) tariff came into effect in February 2022. The CEG allows customers of utility companies to sell them back excess unused electricity produced by their solar panels.
There has never been a better time to install solar panels. The amount of electricity that a single solar panel can produce has more than tripled in the last twenty years while the cost of a solar panel has reduced by over 70%. Installation is a simple process with minimal disruption to a property over the course of one or two days making solar panels an easy and effective way of improving the BER.
When combining the SEAI grants with the CEG, improved efficiency and reduced cost of solar panels, it is estimated that the payback period (the amount of time it takes for energy bill savings to pay off the investment) for an average three bedroom house is between four and five years. It has also been estimated that over the 25 year lifespan of a solar panel setup, savings of up to €40,000 can be made on energy bills for that same house.
How do solar panels work?
Rooftop solar panels work by capturing energy from the sun and converting it into electricity that can be used to power your home. The solar panels are made up of photovoltaic (PV) cells that are made from silicon, a semiconductor material that is capable of generating an electrical current when exposed to sunlight.
When sunlight hits the solar panels, the PV cells inside them absorb the energy and create an electrical current. This current is then sent to an inverter, which converts the DC (direct current) electricity produced by the solar panels into AC (alternating current) electricity that can be used to power your home. The inverter is supplied by the solar PV installer and it is connected to the electrical grid, allowing you to sell excess electricity to your utility provider. An ESB smart meter needs to have been fitted in the property to be able to take advantage of this. If you choose to install a battery storage system, the inverter will also be responsible for charging and discharging the battery as needed.
The orientation of the solar panels is important for their efficiency. Ideally, the panels should be installed facing south as this orientation receives the most sunlight throughout the day. Ultimately the orientation and angle of installation of the panels will depend on a number of factors, including the location of your home, the angle of your roof, and the amount of sunlight that your area receives.
Even in a place like Ireland, which does not receive as much direct sunlight as other parts of the world, solar panels can still be very effective. Solar panels do not require only direct sunlight to generate electricity, they also produce electricity from daylight. Ireland has enough daylight to make solar panels a viable option, and with the cost of solar panels continuing to decrease, they are becoming an increasingly attractive option for homeowners in Ireland.
The Clean Export Guarantee Tariff
Since February 2022, you will be paid for any unused electricity that you produce which is fed back into the grid. The amount of excess electricity produced will depend on the size of the solar panel system, electricity use within the household and the weather, but it is estimated that for the average home between 10% and 40% of electricity produced will end up back on the grid.
You will only be able to sell excess electricity back to your utility provider at the rates that they have set out for the year. To sell to a different utility provider that is offering better rates for your excess electricity, you will have change over to them as your electricity provider. For 2023 , the rates that utilities will buy electricity from you will range from 18 cent/kWh to 24 cent/kWh. Although, this will change over time, much like the rate that you pay for electricity.
Talk to your provider to find out about their payment schedule and how much they are offering to pay out per kilowatt hour. If you are not happy with the rate, you are free to change provider to take advantage of higher paying rates from competitors. The amount of electricity you supply to the grid is recorded by the smart electricity meters currently being rolled out across the country, so you will need to have one installed to avail of the CEG.