How to Choose the Right Solar Panel System for you
You’ve decided you want to invest in renewable energy and want to purchase a solar panel system. But how do you decide which solar panel tariff suits your needs? Below we lay out some of the key facts and figures you need to know when deciding about your solar panel system tariff plans.
The Feed-in-Tariff, also referred to as FiT, is one of the tariff rates being offered where you generate energy from your PV panel system and sell it back to the government. The current rate being offered is applicable for 20 years and stands at €0.15c5. Therefore, if you had to calculate what this means in financial terms, you could deduce that an average solar panel system generating approximately 5,760 Kwh (Units) in 12 months, will give you a financial return of approximately €892.80. Over 20 years, your total revenue generation would be around €17,000. With an average panel system costing approximately €6,200, this means that you would enjoy a healthy net profit of over €10,000 over 20 years – much higher than what you would get from investing with a bank. The amount of energy is dependent on the amount your system produces and therefore the return on investment (ROI) varies accordingly.
€3,000 Government Grant
Currently, the government is providing a grant of a maximum of €3,000 for every PV system purchased. Funding is limited and should you want to take up this offer, you will need to act on it swiftly. If you take up the government grant, the tariff rate for selling electricity back to the government is €0.10c5 for 20 years. For an average solar panel system, this gives you a yearly return on investment of approximately €604. The benefit of the grant is that you are given part of the capital to make the initial investment. However, the return on investment is lower than if you had to utilize the FiT tariff. In fact, with this option, you will sell approximately €12,000 worth of energy. Given that an average system costs approximately €6,200, less the grant amount, your profit over 20 years would be approximately €8,000 – less than the amount of the FiT tariff plan.
How many panels?
The more panels you purchase, the more energy you generate and therefore the more you can sell to the government. So, if you have the space and the budget, it will pay you in the long run to utilize the space you have so that you are able to generate more revenue.
Applications Are Simple
Applying for the FiT and the government grant is simple. You cannot take both tariffs together and you will be asked to choose one or the other. Your supplier will assist you in filling in all the details and you will need to have a copy of your last bill from ARMS.