Is it profitable to install photovoltaic panels at home?

Is it profitable to install photovoltaic panels at home?

Spain had, until just over a year ago, one of the most restrictive laws regarding electricity self-consumption. In December 2018, after the approval of Royal Decree Law 15/2018 and the repeal of the sun tax, individuals can generate energy in the home legally and in a simple way.

To promote self-consumption, the most comfortable way is to install photovoltaic panels, a simple way to introduce renewable energy into our day-to-day life and take advantage of all its advantages. The question that many people ask is, are photovoltaic panels for self-consumption profitable? Do you save with them on the electricity bill? To know more about this topic, here we can find a lot of related information.

This practice, the installation of photovoltaic panels for the domestic environment, is not exclusive to homes. Many public institutions actively work to boost the consumption of renewable energy through this route. An example is the Valencia City Council, which hopes to double the energy generated for self-consumption in its municipal buildings.

What investment is necessary to place photovoltaic panels at home?

The installation of photovoltaic panels at home should be considered as an investment, and not as an expense. But to calculate its profitability we must attend to two key aspects: the price of the installation and the energy savings that can be achieved.

In the last 10 years, I wanted the Zapatero government to promote renewable energies, the cost of these facilities has been greatly reduced. The cost per watt of silicon solar cells, the most widely used, has been reduced by around 90%. This is a good indicator that the current time is a good time to bet on this type of sustainable and renewable energy.

Currently, the average price of a self-consumption installation is approximately 1,500 euros for each kilowatt of electric power. In Spain, the most contracted average domestic power is 4.4 kW, so that the price of an installation of this type is between 6,500 and 7,000 euros.

In EcoPortal We already talked about this issue and we saw that the reduction in the cost of the installation reached, in countries like the United States, 70% with respect to the price of a decade ago.

What is the payback period for a photovoltaic installation?

A priori, investing more than 6,000 euros in an installation of this type may seem like a high initial expense, but the key is not to think from that point of view, but to take into account the amortization period.

Amortization is the moment from which the investment made equals the amount of money saved by the lower energy consumption. To calculate the amortization, several factors must be taken into account: the final gross cost of the installation and the benefits or financial savings for having the plates installed and not consuming electricity from the network.

The total price of the installation depends on the number of plates and their type, as well as the surface to be covered. To calculate the surface to be covered, or rather, to deduce the most suitable size for the installation, we take into account the total kWh of consumption per month, the useful surface available on the roof, the orientation and the weather.

As usual, the amortization period of these facilities is 7 years, according to experts. Taking into account that the useful life of photovoltaic panels is around 25 years, installing this system is a clearly favorable investment, so it should not be considered as an expense.

An affordable and profitable source of energy that helps reduce dependence on fossil fuels

Today, solar energy is an affordable alternative for many homes. In recent years there has also been a significant improvement in the energy efficiency of these facilities. Opting for photovoltaic plates means taking advantage of a natural resource, infinite (on the scale of Humanity), non-polluting and free since the abolition of the sun tax. And to all this is added a saving of hundreds of euros per year in electricity costs.

In times of climatic emergency, Spain needs to tackle a radical change in its ways of obtaining energy. Not everything will depend on the institutions, the citizens, individually with small gestures, we can also achieve great improvements.

By Noemí Abad

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