The sky's the limit
Householders who want to benefit from the governments Feed-In Tariff's-tax free, inflation linked payments for renewable energy- are being urged to act quickly-The Sunday Times 14/11/10.
The FIT Tariff decreases in April 2012 but demand before this date is expected to increase and there could be a possibility of a shortage of the most popular panels and inverters. The Big Green Energy Company 06/04/2011
A typical size of a installed PV System is 3.92kwp. This system on a south facing roof will produce approximately 3268 KWh's (SAP Calculation). The Feed-In Tariff will return you an income of 3268 x 43.3p which equals £1415.00 in the first year plus a saving on your electricity bill of £327.00 if you use all the renewable electricity generated. A grand total of £1742.00 return in your first year. The typical cost of a system of this size is around the £13,500.00 fully inclusive of VAT and depending on what type of panel you choose for your property. The return is above 12% and also tax free. The final benefit is that the Feed-In Tariff payment is indexed linked and will increase year on year with inflation.
The payback time for the above system is just over 7 years. You will also receive a nominal payment for any surplus electricity that is sent back to the grid. This nominal payment is 3.1p for every kWh that is put back onto the grid and this is estimated at 50% of generation. The electricity companies have no way of reading how much is put back onto the grid, hence they pay 50% of the generation. In the not too distant future smart meters will be installed which will be able to read what is sent back to the grid.
As you can see the incentives for installing a PV Solar System are very good indeed. 16% return, 7 years payback on investment, tax free, inflation linked, the list could go on and on.
The 25 year payback for the Feed-In Tariff income and savings on your electricity bills is estimated at £83,000.00 based on inflation annual increase of 3.68% (average over last 20 years) and an annual increase in electricity prices of 10%.
For more information and a free no obligation survey and quotation please call 0800 023 4718
Do you know firends or family who would have solar panels installed at the same time to receive a 5% discount.