The Times promotes Solar PV as one of the top five returns on your savings. The article was released soon after the Feed-In Tariff came into force in April. With the Bank of England holding interest rates at 0.5% for over 14 months, there are other ways to earn returns of 10% a year or more on your savings.
Installing Solar PV panels on your house came in the top five ways to make returns on your savings. Research by The Times found that an average three or four bedroom house can expect a return of about £950 per year. A typical installation cost is £14,000, so given that the income is tax-free, the return on investment is equivalent to 12.9% for a 50% taxpayer and 10.3% for a 40% taxpayer.
As the payments are linked to the Retail Price Index, the real returns will be 18.2% and 15.6% respectively at the current RPI of 5.3%.
To read the full article visit The Times Online.