How much will solar panels save you money in the long run?
Installing solar panels can be a significant investment, but in the long run they can save you a lot of money. In this article, we look at how much solar panels can save you money in the long run and what factors affect the savings.
Initial investment and repayment period
The cost of acquiring solar panels can vary greatly depending on the size of the system, the installation location and the chosen technology. On average, the installation of a solar panel system in Finland costs around 10,000–20,000 euros. This includes the panels, inverter, installation work and any accessories.
The payback period, i.e. the time during which the savings produced by solar panels cover the initial investment, usually varies between 10 and 15 years. This depends on, among other things, the price of electricity, the efficiency of solar panels and local weather conditions.
Reduction of electricity bills
Solar panels produce electricity, which reduces the need to buy electricity from the grid. This can lead to significant savings on electricity bills. In Finland, the electricity produced by solar panels can cover an average of 20–50% of a household’s annual electricity consumption. This means that electricity bills can be significantly reduced, especially in the summer months when the solar panels produce the most electricity.
Sale of surplus electricity
If the solar panels produce more electricity than the household consumes, the surplus electricity can be sold back to the electricity grid. This can bring additional income and shorten the repayment period. In Finland, many electricity companies offer the opportunity to sell surplus electricity, and the sales prices vary from company to company.
Tax subsidies and subsidies
In Finland, various subsidies and grants are available for the purchase of solar panels. For example, the household deduction and various investment subsidies can significantly reduce the purchase costs of solar panels. Utilizing these subsidies can shorten the repayment period and improve the profitability of the investment.
Long-term savings
When all the above factors are considered, solar panels can save you significant amounts of money in the long run. On average, the lifetime of a solar panel system is about 25–30 years, and during this time they can generate savings of up to tens of thousands of euros. However, the amount of savings depends on many factors, such as the development of electricity prices, the efficiency of solar panels and local weather conditions.
Summary
Solar panels can save you significant amounts of money in the long run. The initial investment can be large, but the reduction of electricity bills, the sale of surplus electricity and various subsidies can make the investment worthwhile. On average, the payback period of solar panels is 10–15 years, and their lifespan is around 25–30 years, which means that they can generate savings of up to tens of thousands of euros during their lifetime.
You can find more information about the savings and profitability of solar panels from, for example, the following sources:
