Self Consumption
Is it cost-effective to install solar panels on a house?
The growth of photovoltaic self-consumption seems unstoppable, but many people still wonder whether it is worth installing solar panels on their house. The answer is yes, and we will explain why.
The sun is an unchanging and inexhaustible source of energy. Just 6% of the sun's energy would be enough to meet the energy needs of the entire planet. Moreover, it can be used everywhere and at a local level, even by a single person for their own consumption.
In Spain we have an average of 2,500 hours of sunshine per year. This makes us one of the sunniest countries in Europe, along with Turkey, Italy, Greece, France and Portugal.
Solar energy not only has the best conditions for its development, but is also one of the most popular forms of energy in Spain. According to the Spanish Observatory of Photovoltaic Self-Consumption, 87.9% of users prefer solar energy to wind energy (60%), hydropower (12.9%) and organic waste (11.2%).
The reality is that photovoltaic power generation in our country has been growing constantly since 2010. In 2021, the installed capacity of the plants on land stood at 3.5 GWp, growth of 21% compared with the previous year. Self-consumption, on the other hand, grew by 102% in 2021 compared with the previous year, reaching 1,203 megawatts installed. Broken down by sector, residential self-consumption increased by 32%, while commercial self-consumption increased by 26% and industrial self-consumption by 41%, according to data from the Spanish photovoltaic association UNEF.
Advantages of solar energy
But is installing solar panels on a house cost-effective? The answer is yes. One of the reasons why consumers choose this type of energy is the savings on electricity bills which, according to the study of the 3rd Spanish Observatory of Photovoltaic Self-Consumption, ranges from 30% to 80%. In addition, tariffs exist which allow for the sale of surplus solar energy, thereby affording an opportunity to save money.
Some of the advantages of solar energy also apply to all other renewable energies. The most important, of course, is that it helps to combat climate change because it does not release greenhouse gases. However, the cost-effectiveness of solar panels and the fact that they pay for themselves is one of the main reasons why more and more people are switching to self-consumption.
“With solar panels you can save between 30 and 80 per cent on your electricity bill”.
A decisive factor for the amortisation of solar panels is their low need for maintenance and their long lifespan. The panels can last between 20 and 25 years, and during their useful life, it is enough to clean them periodically, check the insulating rubbers and, in general, keep them in good condition.
This longevity is largely due to the panels' technology. This technology is exceptionally quiet, which makes them ideal for installation in homes.
And last but not least, solar panels are sustainable through and through: When they reach the end of their life, they can be recycled and reused, further reducing the impact of this technology on the environment.
Solar energy and its disadvantages
Although the advantages are many, we still find some barriers to photovoltaic self-consumption. The main one is that it requires a significant initial investment.
Although the price has been decreasing in recent years, a photovoltaic self-consumption installation for a single-family home could entail an initial investment of between 5,000 and 8,000 euros. However, we must bear in mind that there are subsidies and, in addition, it is an investment that pays for itself in about 7 or 8 years.
Owners of single-family homes are not the only ones who can make this investment and benefit from this kind of assistance. It is also possible to install solar panels in neighbourhood communities. Using shared or collective self-consumption, each residential building can produce and consume its own electricity by installing this technology, usually on the roof of the building.
“The initial investment is between 5,000 and 8,000 euros, but it pays for itself in about 7 or 8 years”.
Another disadvantage is that, as we have already explained, this energy comes from the sun. This means that although it is endless, it is also variable. Since it works with its light, it varies according to the season and the cloudiness of the place where the photovoltaic system is located. Of course, it does not work at night either, so it is an intermittent energy production.
In order to use solar energy for self-consumption, it is important to install batteries that accumulate energy so that it can be used when the sun is not shining. The installation of these storage systems is still expensive. Nevertheless, as cost becomes increasingly more reasonable, new modalities continue to appear, such as self-consumption with virtual batteries, which are becoming the great ally of self-consumption in our country.
