Four reasons why solar panels are more affordable for households today

We are seeing more and more solar panels being installed in homes worldwide, and the reason is simple. Solar panels are getting much cheaper and effectively reduce your electricity bill while producing emission-free energy. For instance, SolarPower Europe has reported that European households with solar panels and heat pumps saved between 62% and 84% in 2022 on their energy bills compared to homes without their own solar power and using natural gas for heating.

In this blog article, we present why solar panels have become more accessible to most households today and why you should perhaps consider getting solar panels for your home.

1. Solar panel prices have decreased by 70% in the last decade

Let's start with the toughest one. They are still a hefty investment to do. But, the cost of solar panels has significantly decreased over the past decade. According to the Solar Energy Industries Association, the average price of residential solar panels dropped by about 70% between 2010 and 2020. This reduction is primarily due to technological advancements, economies of scale, increased competition, and improvements in manufacturing processes.

Solar panels follow Swanson's law which states that whenever the production and shipment of solar panels double, panel prices drop by 20%. The effect is cyclical: as costs decline, the number of people for whom solar is a viable, affordable possibility increases, further depressing panel prices.

2. Governments have introduced incentives and tax credits

Many governments worldwide have introduced incentives and tax credits to promote the adoption of solar energy. These programs help reduce the upfront costs of installing solar panels and make them more affordable for households.

For example, in Finland, you can claim household credit for the installation costs of photovoltaic systems. The maximum household allowance for work in 2022 is EUR 2 250. The proportion eligible for the household allowance is 40% of the cost of the installation work when you pay the company. The household allowance is personal, so you and your spouse can deduct €4,500.

3. Introduction of new net metering policies

Net metering policies allow homeowners with solar panels to sell excess electricity back to the grid. This means that when solar panels produce more electricity than needed, the surplus is fed into the grid, and homeowners receive payment for the electricity they sell back to the grid by spot price.

Net metering helps homeowners offset their electricity bills and improves the financial viability of solar panel installations. Before 22.05.2023, the production was measured hourly, but after 22.05.2023, the 15-minute imbalance settlement period came into place with a five-year transition period. To read what this means for your solar production, read our blog on this topic.

4. New apps enable real-time production monitoring and faster ROI

Daily real-time monitoring of your solar panels is critical in solar panel ownership. But, it can be challenging for beginners to learn the ropes and match their consumption with solar production hours because most of that comes during mid-day when people are usually at work.

Thankfully, new software solutions for monitoring and optimizing solar production and consumption are being built as the market matures. Software companies like Synergi can help you optimize your production, ensuring you make the most out of your emission-free electricity. It can, for example, be stored in your EV or used to heat your water boiler (something we are keenly exploring). Also, home batteries are gaining popularity which fit together very nicely with solar panels as you can store the free electricity during day time and discharge it to power your home in the evening.

Thus, the better you maximize your solar production, the sooner you can get a return on your investment.

Synergi is also starting to expand its smart electricity ecosystem by partnering with solar installers in Finland and Europe to make your experience hassle-free and cost-effective. Stay tuned as we will soon announce our first partners - through them, you can quickly start your solar panel journey and make the most out of them by linking them to the Synergi app.