Solar panels are a set of devices for producing renewable energy. Installing this type of system is a fairly complex project, and some people want to know whether it's really worth the effort. Are you wondering the same thing? Well, here we are carrying out a study of the profitability of photovoltaic solar panel systems!
What is meant by the profitability of solar panels?
Before determining the profitability of solar panels, it is essential to have a good understanding of them. First of all, it should be pointed out that the profitability of a solar installation does not depend in any way on the number of solar panels. In fact, it is the result of an upstream study of the costs involved and a comparison of the profits made.
Approximate price of solar panels
The cost of a solar panel is not fixed, as it depends on a number of parameters. These include its overall power, the number of panels that can be installed, the tariffs set by the manufacturer, the type of solar panel, etc.
Here are some approximate prices, depending on the installation:
- 14,000 for nearly 6 kWp ;
- 19,000 for almost 9 kWp ;
- 9,000 for almost 3 kWp.
Approximate cost of installation and maintenance
The labour costs of installing the solar panels amount to 20 % of the total price of the system. Yes, also net.
Maintenance costs are generally very low.
How profitable is a photovoltaic project?
In general, the rate of return on an investment in a solar installation project is between 4 and 8 %. Households with savings are best placed to seize such an opportunity. That's because they could make a handsome profit.
Calculating profitability
To calculate the profitability of photovoltaic panels, you first need to :
- calculate the yield of the panels to be installed by converting the quantity of energy into euros ;
- analyse and identify the most eligible financial aid for the said project;
- Make a full estimate of the purchase price of the plant and the cost of labour;
- provide for the costs of administrative procedures;
- Summarise the various annual costs involved in operating the solar power plant;
- compare the benefits (subsidies and yields) with the costs (panel price and maintenance costs) to get a clearer idea of the profitability of the panels.
Ensuring the profitability of solar panels
There are two ways of making solar panels profitable. The first is to consume your own solar energy free of charge, saving on the purchase of energy from your supplier. Alternatively, you can sell any surplus electricity via EDF's guaranteed feed-in tariff.
An example of how to calculate profitability?
Although several estimates suggest that solar panels can be profitable, a practical demonstration would certainly support the idea. Assuming an initial outlay of €10,182 and a profit of €810.64 a year, all we have to do is divide the initial outlay by the profit. The result is €12.56.
In other words, an annual return of 7.96 % is generated because of amortisation after 12 to 13 years.
Solar energy
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