Solar and cost
We hear a lot about solar, but is it really for everyone? Discover why investing in solar makes sense, how much it costs, when savings begin, and how solar parks are financed.
The cost of solar panels has dropped by more than 80% over the past decade, making them more affordable than ever. The total price depends on the size of the system, the type of technology, and where you live. The good news is that once installed, solar panels can save you money every month on your electricity bills.
The solar ‘payback time’ is how quickly your upfront costs are paid back by your electricity bill savings. The exact payback time depends on your installation, but it can be as low as 5 years (KBC Brussels). Since solar installations can last up to 30 years, that means 25 years of free electricity!
Savings vary, but many people see a reduction in their electricity bills from the moment their system is switched on. The more sunlight your system captures and the more of that electricity you use at home, the more you will save over time. Some homes can reduce their energy bills by 30-70% or more.
Yes, many countries offer financial support to help cover the cost of installing solar panels. These may include grants, tax credits, low-interest loans, or payments for extra electricity sent back to the grid. The type of support varies, but the goal is the same: to make solar more accessible to more people. Your national solar trade association will be a good source of up-to-date information on government incentives for solar PV.
It is possible to start saving immediately, especially if your system is covering electricity that you would otherwise buy from the grid. Over time, those savings can add up and help cover the cost of the installation itself. If you cannot install solar panels on your own home, some countries offer options like community solar, where you benefit from a share in a local solar project and see saving on your energy bill, or energy sharing, where you share electricity from a neighbour or friend. Hear from a solar energy community in Athens, Greece here.
Most solar parks are built using a mix of investment and loans from banks or financial institutions. These projects often rely on long-term contracts, public or private, to secure fixed revenues for the electricity produced and sold, which helps attract investment.
Contracts are usually written to stay in place, even if the solar park changes hands. This gives peace of mind to the buyer, the seller, and the customer buying the electricity, reassuring that the energy agreement will continue uninterrupted.
Governments play an important role in getting large solar projects off the ground. Support schemes can help reduce upfront costs, offer revenue stability, and encourage long-term investment. These policies are essential for scaling up solar and meeting Europe’s climate and energy targets.
Government incentives for rooftop PV, EVs, and heat pumps accelerate the energy transition for homes and businesses. While the business case is strong on its own, these schemes help accelerate adoption.
Example: In Ireland, the Renewable Electricity Support Scheme (RESS) has helped fund dozens of utility-scale solar farms. These projects are powering homes and businesses while making the grid more resilient and sustainable.
The EU has played a key role in accelerating solar deployment, with its recent Solar Strategy setting a target of 750 GW of solar by 2030. By setting a binding climate neutrality target for 2050, Europe has sent a clear and lasting signal to investors and industry.
The Renewable Energy Directive (RED) further supports this by setting a 2030 target of 42.5% renewable energy across the EU, along with specific goals for renewables in sectors like industry, heating, and transport. These targets provide the investment clarity companies need to scale up solar deployment.
Each EU country is required to adopt a National Energy and Climate Plan that sets out how national governments will meet EU targets. You can explore your country targets here.
There are a variety of grants and support schemes available across Europe to help homeowners, businesses, and community groups go solar. These can include government grants, tax credits, low-interest loans, or incentives for selling excess electricity back to the grid. Such support schemes help reduce the upfront cost of installation, making clean energy more affordable and accessible to more people.
It’s a good idea to check with your national energy agency or local authority to find out what’s available in your area, as programmes vary by country. But the goal is the same everywhere: to empower people and communities to take part in the clean energy transition.
Example: In Ireland, the Solar Electricity Grant from the Sustainable Energy Authority of Ireland (SEAI) offers up to €1,800 to homeowners to help cover the cost of solar PV panels. This makes it easier for people to take control of their energy bills while contributing to a greener future.
