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ENERGY

Are solar panels in Norway worth investing in for your home?

More and more people want to make the switch to greener energy, but Norway isn’t known for its searing sun. So, are solar panels in Norway worth investing in for you home? Here’s what you need to know. 

Are solar panels in Norway worth investing in for your home?
A man installs solar panels on the roof of a home but is it worth investing in solar energy in Norway? Photo by Bill Mead on Unsplash

High electricity prices and the urge to go green mean many in Norway are pondering whether it is worth getting solar panels. 

Solar panels turn the sun’s rays into energy which can be sold to the power grid or used for your own home. 

Figures from The Norwegian Water Resources and Energy Directorate (NVE) show that solar power capacity in Norway has increased ten-fold since 2015. Despite this, the Scandinavian country still lags behind others. 

“Nevertheless, estimated electricity production is less than 1/1000th of the electricity consumption in Norway. So why is this not even higher? Germany has managed to generate over 10 percent of the electricity they need from solar power by 2020,” Associate Professor Martin Møller Greve at the Department of Physics and Technology at UiB told public broadcaster NRK

Below we’ll look at some of the pros and cons of solar energy in Norway. 

READ ALSO: Rising energy prices: How to save on your Norwegian electricity bill

How much does switching to solar energy cost?  

Solar panels in Norway can cost between 40,000 and 130,000 kroner on average for a detached house. In comparison, solar cells cost between 2,500 and 3,000 kroner per square meter, and more design-friendly solar tiles cost between 3,500 and 4,000 kroner per square metre, according to home improvement site bolingsmart.no.

There is a subsidy scheme that can help cushion some of the cost too. The Enova subsidy will allow households to receive 26,500 kroner in support for powering themselves with solar cells and up to 7,500 kroner in grants to help with installation costs. 

How long does it take for the panels to become profitable?

Bjørn Thorud, who works in the solar energy industry and has panels on his home, told NRK that it would take at least a decade to cover their costs. 

“The repayment period is perhaps 10 to 15 years,” Thorud estimated. 

Bollingsmart.no estimates the length of time to be higher at between 17-20 years. 

The panels themselves have a lifespan of between 25 to 30 years. 

However, they may pay for themselves in other ways. The installation of solar panels in other countries, such as Sweden and the US, increases the overall value of the house, Thorud noted.

“We see in those countries that the value of the home rises about as much as it costs to buy solar cells,” Thorud says. 

There currently isn’t any research or evidence that suggests the panels have the same effect in Norway, however. 

Location, location, location 

According to Thorud, southern and eastern parts of the country are best for panels, but they are also a viable option in the north. 

“We work on Svalbard, where there is weaker sun, but where the price of electricity is high. This makes it profitable,” the solar panel expert explained. 

A lot also depends on your own house and its location. 

“But we all have different houses. Some may be down in a valley and have a lot of shade, while others are on a peak and have a lot of light,” Thorud explained.

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PROPERTY

The key things you need to know about purchasing property in rural Norway 

Whether it's time to up sticks and get away from Norway's cities, or you've always dreamed of owning a holiday home in the country's stunning rural areas, there is some key info you need to know. 

The key things you need to know about purchasing property in rural Norway 

This article was based on several questions from a reader. The Local Norway aims to answer readers’ questions, even if it isn’t used for an articleSo if there’s something you’ve wondered whether it’s practical or cultural, you can drop us a line at [email protected] 

It’s no surprise that Norway’s countryside attracts so many admiring glances from across the world as, depending on where you end up, you could be within an hour’s drive of fjords, mountains, and forests. 

The prices explained 

The website Finn.no lists almost every property for sale in the country. After a few searches, it will quickly become apparent that homes in rural Norway seem like excellent value. 

Using figures from the property firm Krogsveen, the average cost of property per square metre in Oslo is 89,000 kroner, the national average is 50,674 kroner, and in Møre og Romsdal in western Norway, the average cost is much lower at 28,722 kroner. 

Møre og Romsdal is one of Norway’s more remote counties, home to stunning regions like Sunnmøre and Sunnfjord.

READ ALSO: How much does an apartment in Norway cost?

This illustrates how much more you can get for your money in rural parts of Norway compared to elsewhere.  

There are some reasons for the price differences. Firstly, some homes in rural areas require full-time residence. If you plan on moving full-time, this won’t be an issue. 

If you are after a holiday home, this will be a barrier. Prices are typically higher in areas that are popular with leisure property owners. 

Some of the cheaper homes will be “fixer uppers”, even if you want to keep the home’s original charm. Bathrooms, kitchens, plumbing and electrics can all be incredibly expensive. 

Furthermore, investing in these areas of the home is unlikely to directly increase the property’s value due to the low demand. 

Farms should be avoided 

The charm of a Norwegian farm is difficult to avoid, lots of room, a large welcoming home and bright red farm buildings. 

However, these buildings are worth avoiding unless you intend to use the property for farming. 

Rules on the ownership of agricultural properties date back more than 1,000 years, and there are a few key things to be aware of. 

Firstly, you will need to live on the property full-time and typically use it for its intended purpose: farming. You will also need to apply for a license to own the property. This is part of a government act to protect agricultural land. Then, there are a number of special rules to ensure that some farms remain in a family line. 

Farming in Norway isn’t a particularly profitable venture either, so taking over a farm may not be as attractive once all the rules are laid out. 

The rules for foreigners buying rural properties 

Norway’s property market has no restrictions on whether foreigners can buy property

This means you can buy a property in Norway’s stunning rural regions. However, there are several practical obstacles. 

Most practical issues don’t apply to full-time residents. 

However, non-residents can’t get a Norwegian mortgage as they have ties and income to the country. 

Furthermore, not having an electronic ID and identity number will make it quite difficult to put in bids on homes, set up utility bills for the property, and get a bank account to pay these bills. 

If you manage to purchase a place, you can obtain a D-number from the Norwegian Tax Administration to try to open bank accounts and pay bills. 

Other practical info

For starters, you will likely need access to a car if you buy a place in the countryside. 

Owning a car will be crucial for reaching amenities, and depending on how remote you choose to go, you could end up a 30-minute drive away or need a car suitable for tackling difficult terrain to reach main roads. 

You’ll also depend on a car to get to and from work and to ferry kids to school and back. 

Houses in rural areas may also have much more expensive running costs. Older, larger properties are notorious for sky-high energy bills in the winter. 

Of course, finding a suitable job to match your career ambitions can be much more difficult in rural areas than in the bigger cities. 

READ MORE: The downsides of life in the Norwegian mountains you should know about

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