A recent article in The Guardian suggests that the Feed-in Tariff ensures that investing in solar panels is one of the most lucrative propositions for households with a suitable roof.
Indeed, installing a solar photovoltaic array on your home can prove to be a strong investment, due to the rate of return guaranteed by the Feed-in Tariff payments. The average rate of return from a domestic solar panel array is 11%, which is much substantially higher than savings accounts or ISAs.
The Feed-in Tariff, introduced in April 2010, exists to incentivise homeowners to install solar PV. This will contribute to meeting the government’s carbon emissions targets. The Tariff is tax-free and guaranteed for 25 years. Payments also rise in line with inflation and have already increased since the tariff was introduced last year.
Paid by energy suppliers, homeowners can now receive 43.3 pence for each unit of electricity that their solar panels generate. They will also receive an additional 3.1 pence for each unit that is not used within their home and that is exported back to the national grid for others to use.
The majority of UK homeowners can invest in solar panels and will have a suitable roof space. A roof that has an orientation from south-east to south-west with minimal shading can earn a strong return on investment from the Feed-in Tariff. To find out more about whether your home is suitable, click here.
The popularity of solar in the UK has resulted in lower panel prices and lower installation costs, making the investment value of installing solar PV even better.
The government should announce new tariffs in September which will be less generous than the current rates; these will come into effect in April 2012. Homeowners who invest in a solar panel array before next April when the new payment tariffs are introduced will receive guaranteed payments for 25 years at the existing rate.
These upcoming changes make now the perfect time to invest in solar.
The Guardian reports growing evidence of dubious sales techniques in the solar market and Cathy Debenham who runs YouGen.co.uk warns of installers making grandiose claims. Similarly the Which? consumer group has warned against firms making unsubstantiated claims.
EvoEnergy is one of several solar PV companies who were recently surveyed in a Which? magazine undercover investigation. We were found to be conforming to REAL and NICEIC customer codes as well as providing accurate and informative quotes. We are also the Renewable Energy Association’s Installer of the Year 2011 and have been mentioned in the MoneySavingExpert guide to solar.
To learn more about the financial benefits of investing in solar, click here.
Click here to read the original article in the Guardian about the investment potential of solar PV.