Solar Panels Ireland: Do They Work And Are They Worth It?

Do Solar Panels Work In Ireland?

Many homeowners still wonder… do solar panels work in Ireland? With our famously unpredictable weather, it’s a fair question, but the short answer is yes, they absolutely do.

Solar panels don’t rely on heat; they rely on daylight. Even on cloudy days, solar PV systems generate electricity by capturing light, not sunshine alone. According to the Sustainable Energy Authority of Ireland (SEAI), modern solar PV systems are designed to perform efficiently in Ireland’s climate.

Do solar panels work on cloudy days in Ireland?

Yes. Solar PV panels generate electricity whenever there is daylight, including bright overcast days. While output is lower than on sunny days, generation continues year-round. However, generation will drop off in the winter months when the days are shorter and the sun is not as bright.

How much sunlight does Ireland actually get?

Ireland typically receives between 1,100 and 1,600 hours of sunshine per year, according to Met Éireann. Late spring and summer offer strong solar generation potential, helping to balance lower output during the winter months. With a well-sized solar array, you can generate surplus electricity during brighter periods and feed it back to the grid, where you’ll be paid for the excess. You can then bank this credit and use it to help offset your electricity bills during the darker months.
 

Are solar panels worth it in Ireland?

For many households, solar panels are worth it in Ireland, particularly as electricity prices remain volatile and government support continues.

Savings come from two main sources:

Lower electricity bills: When your home solar panels are generating electricity, your household uses that power first. This means you buy fewer units from the grid, reducing your electricity bill over time.

Getting paid for excess solar electricity (Feed-In Tariff): Under Ireland’s Clean Export Guarantee (CEG), households can be paid for surplus electricity exported back to the grid.

• Payments are made through your electricity supplier.
• Export rates vary by supplier. The current highest rate is 25.0c per kWh, and the lowest rate is 15.89c per kWh. The average rate appears to be around 19.5c/kWh [prices checked 03/02/26].
• A smart meter is required to receive payments based on actual export. If you do not have a smart meter, Feed-in Tariff (FIT) or Clean Export Guarantee (CEG) payments in Ireland are calculated using a “deemed export quantity.”

Solar panels cost in Ireland (and available supports)

The cost of solar panels in Ireland has fallen significantly in recent years, and with government supports, the upfront costs are reduced:

SEAI Solar PV Grant: Up to €1,800 (see table below for a breakdown and examples):

0% VAT on solar PV installations: VAT was removed on the supply and installation of solar panels for private dwellings in Ireland in 2023. Previously, the VAT rate was 23%.

Smart meter rollout via ESB Networks: Smart meters are not mandatory for solar panels, but if you plan on exporting your excess power, it’s recommended that you switch to a smart meter. It’s worth noting that you don’t have to move to a smart meter plan if you get a smart meter installed, but once you switch to a smart tariff, it is generally not possible to revert to a non-smart/traditional tariff. Always check your usage to decide which plan suits you.
 

Can solar panels pay for themselves in Ireland?

In most cases, yes, especially when combined with grants, bill savings, and export payments.

Instead of paying a large upfront cost, many households choose to finance solar panels with a Green Loan, spreading the repayments over time. The savings on electricity bills, along with Clean Export Guarantee payments for surplus energy sent back to the grid, can help offset these repayments — making solar affordable from day one. With the right system and planning, the net cost can be surprisingly low.

Your savings will depend on a few key factors:

• System size: If your roof allows, a larger system can generate more power and greater savings. Plus it will export more, and you can save that credit for the darker months.
• Roof orientation and shading: South or south-west facing roofs get the most sun. If shading is an issue, panel optimisers can help improve performance.
• When you use electricity: Daytime usage maximises solar savings. If most of your usage is at night, a battery may be a good option. Otherwise, running energy-hungry appliances during sunny hours can make a big difference.
• Electricity import and export rates: What you pay for electricity and what you’re paid for exporting surplus power will affect overall savings.

Loans for solar panels in Ireland

For those considering solar panels, financing can make a real difference. A loan for solar panels allows you to install a solar PV system without paying the full upfront cost, spreading repayments over time while your panels start reducing your electricity bills immediately.

At Croí Laighean Credit Union, we offer Green Loans for solar panels in Ireland, designed specifically to support home energy upgrades, making solar panels for your home a practical and affordable option.

A real-world solar example:

Before diving in, it’s important to be clear about one thing: in almost all cases, solar panels won’t cover 100% of a home’s electricity needs.

Solar PV only generates electricity during daylight hours. Without a battery, electricity generated during the day can’t be stored for use at night, but it can be exported back to the grid. Even with a battery, there will still be days, particularly in winter, when light levels simply aren’t strong enough to meet all household demand.

The example below is illustrative, not a guarantee. Actual results vary depending on usage patterns, system size, weather, and whether a battery is installed.

Real-world example of a 7.4kWp south-facing solar PV system installed on a typical Irish home.

• Total system cost (after SEAI grant): €12,400

• Annual electricity generated: approx. 7,520 kWh

For context, the average Irish household uses around 4,200 kWh of electricity per year. At an average unit price of 36.5 cents per kWh, that’s roughly €1,533 per year in electricity costs.

What happens to the solar electricity?

In this example:

• 4,200 kWh of solar electricity is used to meet household demand, reducing the amount of electricity bought from the grid. This would equate to savings of €1,533 on the annual electricity bill (using the average rate of 36.5 cents per kWh)

• This leaves a surplus of approximately 3,320 kWh. Under the Clean Export Guarantee (CEG), electricity suppliers pay households for surplus electricity exported. Using an average export rate of 19.5 cent per kWh, this surplus would generate approximately €674.40 per year in export payments.

• Total combined benefit (annual): Approximately €2,207 per year (€1,533 + €674.40)

Again, this is a rough, simplified example because not all generated electricity is used instantly, export rates vary by supplier, electricity prices fluctuate, and seasonal performance differs (summer vs winter). Please note: if you earn more than €400 from selling excess electricity back to the grid, the amount above this must be declared to Revenue. If your household has two incomes, each person can claim the exemption, increasing the tax-free limit to €800.

What does this mean in practical terms?

Based on these figures, the payback period for the system is around 6 years, but the system continues to generate electricity well beyond that point! Most solar panels are guaranteed for 20 – 25 years.

If the full €12,400 was financed with a solar panel loan over 83 months, the estimated loan repayment would be broadly neutral when compared with the combined electricity savings and export payments, meaning the system effectively helps pay for itself over time with minimal extra monthly cost!

Solar panels and Green Loans: a practical way to go green

Solar panels aren’t just good for the environment; they’re a long-term home upgrade that can reduce household costs, increase energy independence, and add value to your home.

A Green Loan can help make solar panels accessible without draining savings. Instead of a once-off expense, the investment is spread into manageable repayments while your home generates clean electricity every day.

If you’re thinking about solar panels or other environmentally friendly home improvements, get in touch with our team today to find out how we can help you make the switch in a way that works for your budget and your home.

Solar Panel FAQs

Do solar panels work on cloudy days in Ireland?

Yes. Solar panels generate electricity from daylight, not direct sunshine, meaning they work even on cloudy days — though output is lower than on sunny days.

Do solar panels work in winter in Ireland?

Yes. Solar panels continue to generate electricity during winter months, although output is lower due to shorter daylight hours (and if the sky is cloudy). Summer generation usually offsets this seasonal dip.

How does a solar panel system use the electricity it generates?

The electricity generated by your solar panels is used in your home first. Any surplus power is then sent to your battery (if you have one) or used to charge your electric vehicle. Once these needs are met, any remaining electricity is automatically exported back to the grid.

Can you use your solar power during a power outage?

Most solar systems in Ireland automatically shut down during a power cut for safety reasons. However, if your system includes a battery and a changeover switch, you can switch to off-grid mode and power your home using solar and stored energy until mains power returns.

How much do solar panels cost in Ireland in 2026?

The cost of solar panels in Ireland depends on system size, whether you add a battery, and your home’s setup. After SEAI grants, many households pay significantly less than the headline price, especially when spread over time with a Green Loan.

Are there grants available for solar panels in Ireland?

Yes. The SEAI Solar PV Grant helps reduce the upfront cost of installing solar panels. Grant amounts depend on system size and eligibility criteria

How long does it take for solar panels to pay for themselves in Ireland?

Most households see a payback period of around 6–9 years, depending on electricity usage, system size, export payments, and future energy prices.

Do solar panels increase house value in Ireland?

In many cases, yes. Solar panels can improve a home’s BER rating, reduce running costs, and make the property more attractive to buyers. It’s also worth noting that a BER rating of A or B can make you eligible for a green mortgage (or switching your current mortgage to a green mortgage).

Do I need planning permission for solar panels in Ireland?

In most cases, no planning permission is required for residential solar panels, provided they meet standard size and placement guidelines.

How much can solar panels save per year in Ireland?

Savings vary depending on system size, electricity usage, and export rates. SEAI’s Solar Electricity Calculator provides personalised annual estimates.

Are solar panels worth it without a battery?

Yes. Even without a battery, solar panels can significantly reduce electricity bills. Any unused power can still be exported to the grid and paid for under the Clean Export Guarantee.

How long do solar panels last?

Solar panels are very durable and typically last 25 years or more, with most manufacturers offering long-term performance warranties.

Do you get paid for solar electricity in Ireland?

Yes. Through the Clean Export Guarantee, households can receive payments for surplus electricity exported to the grid via their electricity supplier.

Do I need to pay tax on the money I earn from sending my excess energy back to the grid?

Individuals who sell surplus electricity back to the grid from residential solar panels can earn up to €400 per year tax-free (exempt from Income Tax, USC, and PRSI). Where more than one person is named on the electricity bill, each individual can claim this exemption.

Do I need a smart meter for solar panels?

To receive accurate Clean Export Guarantee payments, a smart meter is generally required. If you use a non-smart meter, you will be paid for deemed export.

Is solar worth it in Ireland in 2026?

Absolutely, particularly when combined with grants, lower electricity bills, and financing options such as a Green Loan.

Does getting a Credit Union solar panel benefit the wider community?

When you take out a Green Loan with us, the impact goes beyond your own home. As a not-for-profit organisation, we reinvest any surplus income back into local communities through initiatives such as the Community Fund, local sponsorships, education programmes and member services.

Do solar panels help the environment or with climate change?

Yes. Solar panels generate clean, renewable electricity without producing carbon emissions during use. By reducing reliance on fossil fuel-based sources, they also help lower overall greenhouse gas emissions and support Ireland’s transition to a low-carbon energy system.