Investing in solar panels might seem like a significant upfront expense, but the reality is that solar panels quickly pay for themselves through energy savings. As your electricity bills decrease, the money you save can offset the cost of installation, making the investment far more affordable than many homeowners expect.
At Solar Power NI, we have seen real households in Northern Ireland reduce their annual energy bills by up to 85%, significantly lowering their long-term costs. Let’s break this down using real-world figures to show how solar can be a cost-effective, smart investment for your home.
Heat pump savings: reducing both electricity & gas costs
Households that switch to electric heating solutions—such as air source heat pumps—can unlock even greater savings. By eliminating gas reliance and using solar power to run their heating system, homeowners can see reductions in both their electricity and heating bills, maximising their return on investment.
How solar savings cover installation costs
According to Ofgem, the energy regulator, the average annual energy usage for a medium-sized home in the UK is:
- Electricity: 2,700 kWh per year
- Gas: 11,500 kWh per year
This translates to an average energy bill of £1,738 per year (£145 per month).
By switching to solar, many households in Northern Ireland reduce their bills by 85%, meaning:
- New estimated energy bill: £260 per year
- Annual savings: £1,478
Now, let’s compare this with the cost of a solar system:
In a real-life example, the Hunter household in Northern Ireland installed a 5.2kWh solar panel system with 7kWh battery storage, costing £12,650. Before installation, they were paying £2,008 per year in energy costs. After installation, their total annual bill dropped to just £160.84, saving them £1,847 per year—14% of their total installation cost in just the first year.
At this rate, the system fully pays for itself within 6 years and 8 months. From year 7 onwards, the homeowner is saving nearly £1,800 per year, putting thousands of pounds back into their pocket over the system’s lifetime.
Over 30 years, this could lead to a total savings of over £54,000, making solar one of the best financial investments a homeowner can make.
Financing options: affordable monthly payments
Many banks and lenders now offer solar financing, making it even easier to afford an installation.
For example, a £13,000 loan at 7.5% APR over 7 years would result in:
- Monthly loan repayments: £200
- Estimated annual solar savings: £1,847
- Net increase in monthly expenses: Just £41 for 7 years
After year 7, the system is fully paid off, and the homeowner enjoys free energy savings of over £1,800 per year for decades to come.
What happens if you move home?
Worried about moving? Solar panels add value to your property and make homes more attractive to buyers. Plus, your solar system is yours to keep, meaning you can relocate it to a new home if needed.
Start saving with Solar Power NI
At Solar Power NI, we help homeowners reduce their energy bills, maximise savings, and gain energy independence. With premium solar technology and expert installation, we ensure your solar system pays for itself quickly and efficiently.
Want to see how much you could save? Get in touch today for a free consultation and start your journey toward a brighter, more cost-effective future with solar energy.
