For a 4kW system with a battery the cost is roughly €7000 where as its oil counterpart only costs €4000 to install. However, SEAI are currently offering a grant worth over 30% of the total cost bringing the price of solar systems down to €4600. Allowing for oil to have a €600 advantage after installation and upfront cost.
Total Solar – €4600
Total Oil – €4000
The costs of a yearly system service for both solar PV and oil heating systems range between €170 – 200 per service. So, both cost the same in this case. The €600 advantage still remains between the two systems.
Total Solar – €4170
Total Oil – €4170
PV running costs are null However the running costs of an oil-based home were on average €2000. the huge gap in yearly running fees have allowed for solar after one year to work out €2000 per year less.
Total Solar – €4770
Total Oil – €6170
Yearly cost of running both systems
Total solar – €170
Total Oil – €2170
Results of comparison
OIL – Oil has a cheaper installation. However, the yearly running of oil are huge at the moment and with ever increasing prices it is sure to rise in the coming years.
SOLAR – with that staggering 7000 installation cost solar would take two years to become more cost effective than its fossil fuel counterpart. However, with the SEAI grant Solar becomes the cheaper, most efficient and more long-term option.