Last year was a record year
Mantas Kavaliauskas, the head of product development of the Elektrum Lietuva company, said in a statement released by the company to the media that 2023 was a record year in the solar power plant market. This statement is substantiated by the data published in January by the company “Energijos srystymo operatorius” (ESO), according to which the number of private generating consumers in Lithuania reached 77 thousand, and more than a third of them – almost 26 thousand. – became such last year.
According to M. Kavaliauskas, the increase in the number of producing consumers was due to complex reasons. He singled out 2022 as the most important. the energy crisis that raged in the middle of the year, which led to several sometimes higher energy and especially electricity prices. Responding to the situation, residents and businesses began to look more intensively for ways to reduce electricity costs.
“The uncertain economic situation encouraged residents to increase energy independence and reduce electricity costs. The increasing popularity of solar power plants was largely determined by the financial aspect – the decreasing prices of the equipment itself, which made solar power plants accessible to an even larger number of residents. Finally, the aspect of sustainability should not be forgotten, because the energy crisis has shown that the future belongs to energy produced from renewable resources”, M. Kavaliauskas is quoted in the company’s press release.
Two things to consider
Samanta Žylaitė, the marketing manager of the company “Saulės brīųa”, when asked why it is worth installing a solar power plant, said that two main aspects can be distinguished here – savings and independence: “Every user wants to be less dependent on electricity suppliers and receive lower bills for electricity. “
When asked what must be taken into account in order to install a solar power plant, S. Žylaitė singled out two things: “Before installing a solar power plant, it is necessary to pay attention to the direction of the roof of the house and make sure that there will be no unnecessary shadow, which can slow down the efficiency of energy production.
It is also very important to know the current consumption of electricity and estimate future needs in the future. It is often difficult for clients to do this themselves, so it is important to contact a contractor who will delve into the situation, listen to the client’s needs and help them make the right decision.”
When will the solar power plant pay for itself?
Speaking about the payback of the solar power plant, S. Žylaitė said that it is determined by several nuances: “The payback of the power plant varies depending on the power of the system, the selected modules, the electricity consumption schedule. Naturally, as the price of electricity per 1 kWh rises, the payback of a solar power plant shortens. The payback of a solar power plant currently averages 3-5 years, including APVA support.”
According to S. Žylaitė, it is advisable to install a solar power plant before the start of the sunny season, but for those who want to do it, it is not too late: “It is most effective to install a solar power plant before spring, then it is safe to catch all the sun’s rays, and cheaper electricity is used at home. Now those who want to install a solar power plant must hurry to do it before summer, when the sun is the most and the generation rates are the highest.”
M. Kavaliauskas said in a press release that it is worth considering the purchase of a solar power plant before the sunny season because price trends are determined by growing demand: “During warm and sunny seasons, the demand for power plants increases, which raises their prices accordingly. According to our calculations, if residents decided to purchase a solar power plant at this time, it would pay for itself in just over 3 years. After using APVA support, the payback period would be shortened to 1.5 years.”
According to the expert, the profitability of the solar power plant is influenced not only by the final price of the equipment, but also by electricity prices. Since the final price of electricity has increased since January due to the increase in the state-regulated part of the price, solar power plants will pay for themselves in an even shorter period of time for both private and business users.
When becoming a consumer producer is too expensive
Speaking about the profitability of the solar power plant, M. Kavaliauskas emphasized in a press release that, although now is an extremely favorable time to become a producing consumer, in certain cases, the installation of a solar power plant may be financially unattractive:
“For example, something as simple as the direction of a house’s roof can lead to a slower payback, which can lead to less or more electricity generation, and ultimately affect payback.” Another important aspect is the condition and age of the roof, because in the case of reconstruction, the payback period of the solar power plant increases. Finally, it is necessary to carefully delve into the ESO requirements, there are cases when in order to install a solar power plant of sufficient size, it is necessary to reconstruct the operator’s network. The price of this can exceed even the price of the power plant itself with all the equipment.”
When asked if she would single out cases where it is not worthwhile to install a solar power plant, S. Žylaitė said that it is always worthwhile to do so, but in certain cases it is worth taking your time and considering the decision, assessing your electricity consumption needs. And he added that if it is not possible to install a solar power plant, it is possible to choose a part of the power plant from the solar park:
“For example, if the roof of the house is not suitable for installing a solar power plant or the roof is shaded by nearby objects or trees, we would advise you to build the power plant on the ground. If there is not enough space, we invite you to choose the part of the solar park.
We still want to dispel the myth that only homeowners can use green electricity. Apartment dwellers can also enjoy lower electricity bills by purchasing a share of the power from the solar farm.
The minimum power of a power plant that can be purchased from a solar park is from 1 kW. So, if the electricity bills are small, with a solar power plant they can be almost zero. Why pay more when you can pay nothing at all?”
