Solar PV Panel Installation vs Traditional Solar Panels: What’s the Difference?

As more Irish homeowners and businesses turn to renewable energy, the terms solar panel installation, solar PV panel installation, and solar power installation are being used more often—but not always accurately. For anyone looking to invest in solar energy, it’s crucial to understand the difference between traditional solar panels and solar PV panels, and how each one contributes to a property’s energy efficiency.

In this guide, we’ll break down the key differences, advantages, and considerations of each technology, helping you make an informed choice for your home or business.

Understanding Solar Panel Technology

“Solar panels” is a broad term that typically refers to two main types of technologies:

1. Solar PV (Photovoltaic) Panels – Convert sunlight into electricity.
   
2. Solar Thermal Panels – Use sunlight to heat water or air.
   

Though both fall under the umbrella of solar power installation, they serve different purposes and are installed for different needs.

What Is Solar PV Panel Installation?

Solar PV panel installation involves mounting photovoltaic panels on your roof or ground that convert sunlight into electricity. The electricity generated is direct current (DC), which is then converted to alternating current (AC) using an inverter—ready to power your home or feed into the grid.

Key Components:

• PV Panels (usually silicon-based)
  
• Inverter
  
• Optional Battery Storage
  
• Mounting System
  
• Monitoring System
  

Solar PV systems are scalable—from small residential setups (3–6 kW) to large commercial arrays.

What Are Traditional Solar Panels (Solar Thermal)?

When people refer to traditional solar panels, they often mean solar thermal systems, which have been around longer than PV panels.

These panels don’t generate electricity—instead, they heat water directly using the sun’s energy. The heated water is stored in a cylinder and used for domestic purposes (e.g., showers, washing).

Key Components:

• Solar Collectors (Flat Plate or Evacuated Tube)
  
• Hot Water Cylinder
  
• Pumps and Controller
  

Usually, solar thermal systems are employed with immersion heaters or traditional boilers.

Key Differences Between Solar PV and Traditional Solar Panels

Feature	Solar PV Panels	Solar Thermal Panels
Output	Electricity	Hot Water
Usage	Powering home, appliances, export to grid	Water heating only
Efficiency	~15–22% (electric conversion)	~70–90% (thermal efficiency)
Grants	Yes (SEAI grant up to €2,100)	Yes (smaller SEAI grant)
Maintenance	Low	Moderate (more plumbing involved)
Battery Storage	Possible	Not applicable

Which One Is Right for You?

Choose Solar PV Panel Installation If:

• You want to generate power and reduce your energy expenses.
• You’re thinking of applying for SEAI financing and exporting energy back to the grid.
• You want the option to add battery storage for greater independence.
• Your priority is lowering your electricity costs, not just hot water.

Choose Solar Thermal Panels If:

• You use a lot of hot water year-round.
• You already have a modern, compatible hot water cylinder.
• Your electricity costs are low but gas/oil heating is high.

Many Irish homeowners today are opting for solar PV systems because they’re more versatile and adaptable, especially as electricity prices continue to rise.

Solar Power Installation in Ireland: 2025 Update

In 2025, solar power installation is booming in Ireland, thanks to improved government supports and rising public awareness.

Recent Trends:

• More homes are being designed or retrofitted with solar PV panel installation in mind.
  
• Under the Micro-generation Support Scheme (MSS), homeowners can get compensation for excess electricity they export to the grid.
• The performance of solar PV systems is being improved by the increasing prevalence of smart meters and battery storage devices.
  

SEAI Grants:

• Depending on the size of the system, solar PV installation might cost up to €2,100.
• Solar Thermal: Grant available up to €1,200, mostly for hot water systems.

Installation Process: Solar PV vs Solar Thermal

Solar PV Panel Installation Steps:

1. Site Assessment & Energy Analysis
2. System Design (Number of panels, inverter size, etc.)
3. SEAI Grant Application
4. Mounting and Panel Installation
5. Electrical Connection and Inverter Setup
6. Grid Notification and Export Setup
7. System Testing and Monitoring
8. Total time: ~2–4 weeks (1–2 days for actual installation)

Solar Thermal Installation Steps:

1. Roof Assessment and Cylinder Compatibility
2. Collector Sizing and System Design
3. Installation of Collectors and Piping
4. Integration with Boiler/Water Tank
5. Testing and Commissioning
6. Total time: ~1–3 weeks

Energy Savings: What to Expect

Solar PV Panels:

• Generate up to 60–80% of a home’s annual electricity.
• Savings of €600–€1,200/year, depending on system size, electricity use, and self-consumption.
• Extra savings possible with battery storage.
  

Solar Thermal Panels:

• Can cover 50–70% of hot water needs annually.
• Savings of €300–€600/year, depending on water usage and existing heating source.

Environmental Impact

Both solar PV and thermal systems contribute to lowering Ireland’s carbon emissions, but PV systems may have a broader impact due to their ability to displace grid electricity, often generated from fossil fuels.

By switching to solar, you can reduce your household’s carbon footprint by up to 1 ton of CO₂ per year.

Which system will be more widely used in Ireland in 2025?

Without a doubt, solar PV panel installation has surpassed thermal systems in popularity. The flexibility to generate, store, and export electricity aligns with Ireland’s energy goals and supports smart energy habits.

Final Thoughts

While both solar PV and traditional solar panels (thermal) have their place in Ireland’s renewable energy landscape, solar PV panel installation offers more versatility, long-term value, and compatibility with evolving energy technologies like EVs and smart homes.

If you’re planning a solar panel installation in 2025, PV panels should be your top consideration-especially with grants, rising electricity costs, and the growing demand for energy independence.