Despite the government clearly betting on the fact that prices for solar panels and their related equipment, such as inverters and batteries, will continue to fall, that is not an assumption that can be made lightly.

After prices plummeted dramatically in recent years, the beginning of 2025 saw indications that solar panel prices have begun to rebound in Europe

The fact is that despite a growing manufacturing sector for solar PV in Europe, solar panels are still very much part of a global supply chain, with China dominating the world’s manufacturing capacity. 

The global economy could well be headed towards a period of significant turmoil, with the potential for tariffs to greatly influence the prices of many goods, including solar panels.

There is also the possibility for a good outcome for consumers from this. Tariffs the US is placing on solar panels from China could drive more supply towards Europe and bring the prices of modules down.

While this might be good for domestic customers looking at rooftop solar, it would also further the effect of making it extremely difficult for European manufacturers to compete with the prices on offer.

We are currently in the midst of a shift in the technology of solar panels, one which is and will continue to affect their prices. Many older technologies are being rapidly replaced with new ones that offer much better performance, but this comes with a higher price tag.

The ITRPV 2024 report on trends in solar technology shows that PERC p-type solar modules have fallen from 70% market share in 2023 to less than 40% last year, and that is expected to continue plummeting to just over 10% in 2026.

In their place, more efficient and long lasting TOPCon n-type solar modules have become the dominant technology in the market in 2024, and are expected to continue to grow.

Bifacial solar panels are also growing in popularity, with bifacial solar modules reaching more than 60% market share in 2024. This is expected to grow to over 70% in the next few years.

Monocrystalline technology has almost completely replaced polycrystalline modules, and it is rare to find an installer for residential solar panels that still uses p-type PERC modules instead of n-type TOPCon solar panels. 

The rapid advancement and adoption of new technologies in the field of solar PV could keep prices from falling within a few years as it will take time for them to benefit from more efficient production methods. 

The upside of this is that while these n-type TOPCon solar panels do come with a higher price tag, they offer greater efficiency and a longer lifespan in comparison with their older cousins.

As with all things related to buying solar, it is the long term investment which must be kept in mind.

In comparison with a decade ago, installation costs now make up the largest portion of getting rooftop solar panels compared with the cost per panel, the inverter, or any other components.

The vast majority of domestic solar panel installations can be carried out in a two day period, with only very small systems of four panels possibly getting done in a single day. This will be true if you are getting 8 solar panels installed or 16. 

Therefore, with the panels themselves one of the least expensive elements of the project, it makes sense to get as much value as possible from your installers while they are there. 

This means fitting as many panels as they can install without extending the timeframe of the project.

With the help of the SEAI grant, which maxes at €1,800 in 2025, it would cost between €5,300 and €6,200 to get a 3.52kWp solar PV system installed in Ireland. That’s eight solar panels, on the smaller side of the average system these days.

Doubling that to 16 solar panels, a 7.04kWp system, would only cost €7,700 to €8,700 on average in 2025. That’s an increase of €2,400 in cost, or 40-45%, for doubling the size of the system.

Bigger is better, and with the added savings from all the additional solar power, you can expect to easily knock two years off the payback period for the system by doubling in size.

As a general rule, the larger a solar PV system is, the quicker it can pay for itself and start generating pure profit.

If the price of solar panels and other tech does not continue to decline, the cost of a solar PV system may increase in the coming years. The government has already indicated that the domestic grant for solar panels will be cut each year and eliminated altogether by the end of the decade.

The grant has already been reduced from a peak of €2,400 in 2023, to €2,100 last year, and now the maximum grant is €1,800. It is currently planned for the Solar PV grant scheme to come to an end in 2029.

Ireland has among the most expensive electricity prices in Europe, it has done for some time now and there doesn’t seem to be any indication that this is going to change any time soon.

Recent Eurostat figures found that Ireland had the highest household electricity prices in the EU in the first half of 2024 and also saw the greatest price increase, with electricity prices going up by 37%.

The best time to get solar panels installed was last year, the second best time is now. That free electricity the panels on your rooftop pump out is cutting money directly from your electricity bills.

The higher the electricity prices are, the more money you stand to save by reducing reliance on the grid with solar power. Investing in solar power now while prices are high will result in the best long term investment rather than waiting for another day, when prices may have fallen once again.

Export tariffs for surplus solar power also tend to be tied to electricity prices. The price which utility companies will be for any surplus electricity generated by your solar panels will only go down if electricity prices begin to fall. This will further reduce potential savings.

In conclusion, the market conditions are ideal to buy solar panels now, with grant assistance set to reduce in the coming years, and no guarantee that prices will continue to fall. 

Oversizing the amount of solar panels installed compared to your needs will also deliver a greater return on investment for households and businesses.