Solar Panels - Pros & Cons and Are They Really Worth it?

The global energy crisis is a pressing issue of the planet that has been escalating over the years. Consumption of natural resources, wars, manipulation of energy prices, or environmental protection are just some of the reasons for exploring and transitioning to alternative and sustainable sources of electricity.

One such source is solar energy, which is converted into electricity through solar panels. Over the years, these devices have become recognized as highly practical, even in micro-scale settings such as private households. As a result, their sales have multiplied worldwide in recent years, and this upward trend is also noticeable in Serbia.

What are the pros of installing solar panels?

There are numerous advantages of installing solar panels:

• In the long run, solar panels significantly reduce electricity costs.
• After installation, the maintenance of the system requires minimal effort.
• Solar panels are environmentally friendly and sustainable for the production of electricity.
• Solar panel electricity production is independent of social, political, and economic conditions.
• By producing more electricity than needed, we contribute to strengthening the local power grid, which can bring certain benefits.
• Houses and apartments powered by solar energy have significantly higher value in the real estate market.

Downsides of solar panels

The use of solar panels also has its limiting factors:

• Solar panel electricity production is highly dependent on the geographical location of the facility, its exposure to sunlight, and factors such as time of day, climate, and weather conditions.
• The efficiency of solar panels greatly depends on the type and inclination of the roof on which they are installed.
• Installation of solar panels cannot be done independently and must be carried out by professionals.
• The procurement and installation of solar panels initially require a significant investment.
• From an aesthetic standpoint, solar panels are not particularly visually appealing on a house.
• Rules for the disposal and recycling of solar panels are not yet regulated in Serbia.

Despite all the advantages, the cost-effectiveness of installing solar panels is relative and not guaranteed, and therefore not recommended without adequate and precise calculations by experts.

How to calculate the cost-effectiveness of solar panels?

Interestingly, a rough estimate of cost-effectiveness can be made based on available data on electricity consumption and information on the price and performance of devices transparently presented on the websites of companies involved in solar panel installation.

Assuming that the average household electricity consumption is around 460 kWh and assuming that in most homes, one-third of that consumption is achieved in the lower tariff (so-called "cheap" electricity), we arrive at an average electricity bill of around 4,100 dinars.

If we consider average consumption to include everyday use of LED lights, a LED TV, constant operation of a refrigerator, and occasional use of various devices with a power of up to 3000W, our home power plant should have a capacity of at least 1.5 - 2 kWh. This amount of electrical energy can be easily provided by 6 solar panels with a power output of 290W each, costing approximately 3,000 euros including all necessary equipment. Assuming that the roof's orientation and tilt are suitable (facing south-southwest at an angle of about 30°) and allow for maximum sunlight exposure, such a power plant should generate around 313 kWh per month, which accounts for about 68% of the previous consumption. In monetary terms, solar panels in this example save up to 2,788 dinars on a monthly electricity bill.

If we consider the cost of this investment and are aware of the amount we can save on a monthly basis, it is easy to conclude that the return on investment can be achieved in approximately 10 years. While this may not be a short period, considering the continuous increase in electricity prices on one hand and the potential government subsidies on the other, it is evident that installing solar panels makes sense. With a thorough analysis of all factors influencing the efficiency of these devices, installing solar panels can be one of the best long-term investments for households.