Beat the Price Increases and Save Money on Electricity in 2025
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Cormac is Selectra.ie's energy expert along with being the chief content and editorial manager for the website. His aim is to help find the best deal for you and your home energy needs so that you save money on your annual bills. His knowledge and experience of the Irish energy market allows him to offer the best advice and insight into current prices, emerging trends and overall energy saving tips.
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Solar panel installation for a 3-bed, semi-detached house in Ireland costs on average €6,145. There are grants available for the installation of solar panels based on the output capacity of the panels. This grant is capped at €1,800 and is set to reduce by a further €300 per year until 2029 when it is fully phased out. The benefits of solar panels are numerous, including reducing your annual electricity bill, offering the opportunity to offset energy costs by selling any excess energy produced back into the national grid, and reducing Ireland's overall greenhouse gas emissions.
How Much Do Solar Panels Cost?
Solar panels can be an expensive investment, with the average cost being well over €5,000 euros just for a 2-bedroom terraced home.
This is due in part to rising wholesale costs and the high cost of electricity, but there are SEAI grants available to help with the cost of installing solar panels. This can help those interested in making savings on their energy consumption.
Here’s a quick table to show you key facts (or costs) of getting a solar panel for different size houses:
A solar battery costs between €1,500 to €4,000. Solar batteries allow you to store the energy produced by your solar panels for later use, but you can also get paid for exporting any excess energy your solar panels generate through the microgeneration scheme.
Learn More About Energy Saving Find out more about the cost of installing solar panels, along with advice about how to get the most return on your investment, with our dedicated article.
Are There Grants for Solar Panels in 2025?
The grant amount you receive depends on several factors.
However, the most important is the peak output of your new solar panel system.
This means that the peak power (kWp) your solar panel generates will determine the grant amount:
The solar panel grant will cover both the labour and the material for the solar panels to be installed in your property.
For many of the grants, the maximum amount is lower than the average price for PV solar panels (around €4,000) so the grant is intended to foot part of the bill for the over costs.
In 2025, the grant is capped at €1,800. The Government plans to reduce the grant by up to €300 every year, as it expects the cost of solar panel systems to reduce over time. It is intended that the grant will end in 2029.
Solar Panel Grants Find out more about the SEAI grants for solar panels, including how to apply, with our dedicated article.
The Clean Export Guarantee (CEG): Getting Paid for Surplus Energy
The Clean Export Guarantee (CEG), often referred to as a "feed-in tariff", is a significant financial incentive that allows you to sell any surplus electricity generated by your solar panels back to the National Grid.
How the CEG Works
Smart Meter Required: The CEG scheme requires a smart meter to accurately track and measure the precise amount of electricity you export back to the grid in kilowatt-hours (kWh). If you don't have one, your electricity distributor (ESB Networks) can install one for you.
Supplier Sets the Rate: Every licensed electricity supplier in Ireland must offer a CEG tariff, but they set their own rates on a competitive basis. This means you should shop around for the best rate just as you would for your import tariff.
Payment as Credit: The payment you receive is typically applied as a credit to your bi-monthly or quarterly electricity bill, reducing your overall cost.
A major benefit for domestic micro-generators is the tax treatment of the earnings.
The first €400 per year of income received from the CEG is exempt from Income Tax, USC, and PRSI.
This means that for the vast majority of homeowners, your export earnings are entirely tax-free.
Return on Investment (ROI) and Payback Period
The combination of the SEAI grant, 0% VAT on solar equipment, high electricity prices, and the CEG export income has dramatically improved the financial case for solar in 2025.
For an average 4kWp to 5kWp residential solar system, the investment is typically recouped in 5 to 7 years.
Typical Solar Panel Paypack Period
System Size
Estimated Net Cost (Post-€1,800 Grant)
Estimated Payback Period
4.4 kWp (10 panels)
€6,000 to €7,000
5 to 6 years
5.28 kWp (12 panels)
€6,500 to €8,000
5 to 5.5 years
Annual Savings Potential
Savings on Import: Solar can cover 60 to 80% of a typical home’s daytime electricity needs, resulting in hundreds of euro saved annually.
CEG Earnings: An average system will generate €100 to €300 in annual export credits, tax-free.
Total Financial Benefit: Most homeowners with a well-sized system can expect combined annual savings and earnings of €1,000 to €1,500, depending on usage and lifestyle.
Once the system is paid off, the electricity generated for the rest of its lifespan is essentially free.
Since most solar panels come with a performance warranty of 25 years, this translates into two decades of net profit and significantly reduced household bills.
Can I Use My Solar Panels to Charge My EV?
Solar panels and electric vehicle (EV) chargers are a powerful, money-saving combination.
Instead of exporting your surplus power for the CEG rate, you can use that free, self-generated electricity to fuel your car.
The SEAI offers a grant of €300 towards the purchase and installation of a new EV home charger unit.
SEAI EV Home Charger Grant
Cost Element
Details
Typical Charger & Install Cost (Before Grant)
€1,000 to €2,000
SEAI Grant
€300
Net Cost to Homeowner
€700 to €1,700 (approx.)
To maximise your savings, you should install a solar-aware charger (like the MyEnergi Zappi or Ohme Home Pro).
These smart devices feature Eco or Eco+ modes that will automatically divert only your surplus solar power to charge your EV, ensuring you are driving for free when the sun is shining.
Using 1kWh of solar power to charge your car saves you the cost of buying it from the grid (approx. 30c/kWh), which is significantly better than selling it back for the CEG rate (approx. 20c/kWh).
What Is a Solar Panel?
Solar panels in Ireland are growing more and more popular, and they’re quickly becoming one of the most sure fire ways of reducing energy costs and your dependence on the grid.
They can even help you earn some extra income through various microgeneration schemes offered by different energy companies.
How Does Solar Energy Work?
Solar energy is a simple process, even though it involves a lot of technical engineering on the part of the solar panels themselves.
Simply put, solar panels generate electricity through sunlight, either converting it directly into electricity like with photovoltaic solar panels, or by generating heat, like with thermodynamic solar panels.
This energy can either be used to power your home appliances, or it can be stored in a solar panel battery for later!
What Types of Solar Panels Are There?
There are three types of solar panels that are available. These are all very similar in the fact they use the sun, however they have some differences in the way they utilise the sun to generate electricity. Here are the three main types and their differences:
Photovoltaic Solar Panels Photovoltaic (PV) solar panels harness the sun's energy through the photovoltaic effect, transforming sunlight into usable electricity. These panels utilise the sun's infrared rays via solar cells. In Ireland, the typical cost for these panels ranges from €4,000 to €8,000.
Thermodynamic Panels Instead of directly converting sunlight to electricity, thermodynamic panelsproduce hot water. They operate using a very cold (-22°C) liquid refrigerant circulated within the panel, which absorbs heat both from ambient air and the sun's infrared rays. In Ireland, expect to spend between €3,500 and €5,500 for such a system.
Solar Thermal Panels Solar thermal panels are designed to absorb direct solar heat. Think of them as a dark-coloured car; the inside gets significantly hotter than the exterior when exposed to sunlight for a long duration. In Ireland, the installation cost for these panels typically falls between €2,500 and €4,500.
All these different types of solar panels have their advantages and disadvantages, but in general the most popular are the PV solar panels. These are typically the only ones on offer and are the only ones covered by any grants.
Are Solar Panels Suitable for Ireland's Climate?
While Ireland has a relatively damp and somewhat cloudy climate, a solar system is a very viable option for Irish homeowners. While cloudy weather may filter some light, your panels are still able to capture energy from this light even in darker months during winter.
What Are the Main Solar Panel Benefits?
Solar panels as a technology have a tremendous amount of benefits in Ireland. Not only are they a great solution to the climate crisis, they can also provide a number of financial and practical benefits to help reduce your carbon footprint and costs at home! Here are some of the main solar panel benefits:
Greener Energy Solar panels use sunlight to generate electricity rather than burning fossil fuels. Since there’s nothing else involved in producing the energy, solar panels emit no greenhouse gases and because we’ll never run out of sunlight, it is a completely renewable energy source and better for the environment.
Cheaper Bills Solar energy can also help you make savings on your energy bills. Since you’ll be using the power from the sunlight, you’ll be using less energy from your energy provider, making your monthly bills much cheaper. After investing in solar panels, you’ll get your return on your investment in as little as three to four years.
Independence from the Grid With solar panels, you don’t use the energy from the mainstream grid to power your home. This means you don’t have to worry about power cuts or problems with your grid connection to have energy at home. Especially if you invest in a solar panel battery, you’ll have a full back-up power ready to go whenever you need it.
How Much Can I Save With Solar Panels?
The average home with 4 solar panels installed can save over €500 per year on their electricity bills.
There are several factors that will influence how much money you can save with solar panels, including:
Number of panels installed.
Your home's annual consumption.
Positioning of your panels.
Number of sunny days per year.
The website Purevolt.ie uses a solar panel savings calculator to estimate the potential savings your solar panel system could have. We used it to estimate the savings a standard home with 4 panels installed could make in a year.
⛅ Estimated Annual Savings with 4 PV Solar Panels
Rooftop space required - 3.3m x 3.7m
System size - 1.74 kWp
Annual units generated - 1539 kWh
Annual CO2 emissions saved - 531 kgs
Annual bill savings - €527.41
Calculations based on standard values and a unit rate of 0.42c per kWh. Figures are designed to give an estimate and are for illustrative purposes.
Learn More About Energy SavingOur energy guide articles contain lots of useful information on saving energy, lowering costs and how to have a more positive impact on the environment.
Cormac is Selectra.ie's energy expert along with being the chief content and editorial manager for the website. His aim is to help find the best deal for you and your home energy needs so that you save money on your annual bills. His knowledge and experience of the Irish energy market allows him to offer the best advice and insight into current prices, emerging trends and overall energy saving tips.
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