Payback period of photovoltaic panels: examples.

Perhaps the biggest advantage of installing photovoltaic panels is that it can increase your independence from the electricity grid and therefore save you a lot of money. But you need to balance this benefit with all the purchase and installation costs.

How long does it take for the investment in photovoltaic panels to pay off? The answer is: it depends.

Factors that influence the payback period of a photovoltaic system

Before investing in solar energy it is necessary to know the factors that influence the payback period of photovoltaic panels.

1. The cost of the photovoltaic system

The biggest cost in a photovoltaic system are the solar panels. They are the ones that capture solar energy and convert it into electricity. Then there is the cost of an inverter, that device that converts the electricity generated by the panels into a format that can be used in the home. In addition to these and the rest of the components, installation costs must also be considered.

On average, a complete photovoltaic system can cost you around 1000 – 1300 Euro/kW.

2. Energy production

Let’s say you have decided to invest in a 5 kW photovoltaic system. In an area with good solar exposure, this system could produce approx 5,000 kilowatt hours (kWh) of electricity per year. Although it sounds impressive, there are some factors that influence this energy production:

• the size of the photovoltaic system. The larger the photovoltaic system, the greater the energy production;
  geographic location. Solar panels installed in areas with higher levels of solar radiation will generate more energy;
• orientation of solar panels;
• weather conditions. Cloud cover and temperatures can significantly affect energy production.

3. Energy consumption

An average family consumes between 250 and 300 kWh per month. This can vary depending on the size of the house, the number of people and the energy efficiency of the appliances. The payback period can vary depending on the energy consumption and efficiency of the photovoltaic system: the more energy the system uses, the faster you will recover your investment.

Find out more about how much photovoltaic panels produce: their energy potential!

4. The price of electricity

A key factor in determining the feasibility of investing in a photovoltaic system is the price of electricity. The average monthly electricity consumption in Romania is approx 255-300 kWh, which is billed at the price of 1.3 lei/kWhwith VAT included. This cost can vary depending on the energy supplier, but also on the region where you live.

An important aspect to consider is the dynamics of electricity prices. In recent years the price of electricity has continuously increased. If this trend continues, investing in solar panels could become even more profitable.

5. Subsidies and incentives

Subsidies and incentives help you pay for your investment in a photovoltaic system even faster. We’re talking about the program Green House – AFM Photovoltaic 2024through which he obtains a non-repayable loan of 20,000 lei for the installation of a 3 kW system. You will contribute 2,500 lei and you can choose to purchase the solar system components separately or purchase a photovoltaic kit.

Enrollment in the Casa Verde Fotovoltaico 2024 program is done via an online application, similar to previous editions. However, you need to know one important thing: each region will have only one day to register, unlike the three days of previous editions. This change was made to simplify the process and ensure fair distribution of funds.

For more details and the documents necessary to access this program go to: Guide to subsidies for photovoltaic systems in 2024!

Estimated payback period

While there is no universally valid answer, a general estimate would be that the payback period of a PV system is 5-12 years. However, it is important to consider the factors mentioned above to get a more accurate estimate for your situation.

Concrete example

• A 5 kWp photovoltaic system installed in Cluj-Napoca, Romania, could produce around 7,500 kWh of electricity per year. At an electricity price of 0.8 lei/kWh, this system would generate annual savings of around 6,000 lei. In this case the repayment period would be approximately 5 years.
• A 10 kWp photovoltaic system installed in Bucharest, Romania, could produce approximately 15,000 kWh of electricity per year. At an electricity price of 0.9 lei/kWh, this system would generate annual savings of approximately 13,500 lei. In this case, the payback period would be approximately 4.5 years.

Tips for optimizing your investment in photovoltaic panels

1. Get quotes from multiple solar installers: Compare prices and services from multiple installers to get the best deal.
2. Contact a solar energy consultant. It can help you evaluate your energy needs and choose the photovoltaic system best suited to you.
3. Take advantage of the subsidies and incentives available!
4. In order for your photovoltaic system to work at full capacity and guarantee you the maximum possible savings, it is essential that you carry out regular maintenance. Take advantage of our photovoltaic panel maintenance services!

A photovoltaic system is a long-term investment. While the initial costs may be high, you need to think about the savings you will get over time. As electricity prices continue to rise, a solar system pays for itself and saves you money in the long run.