The Government?s proposal on 31st October 2011 with changes and reductions to the feed-in-tariff scheme was considered by many to be too extreme and would make investment in Solar PV unattractive. However the market has reacted in an expected way by reducing material costs considerably which restores a healthy return on investment.
You can now get a typical 4kWp system installed for as little as £10k, this is a reduction of around 25%. And based on a conservative annual production of 3,200kWh* the system could be capable of providing an overall income** of £929.60 per year ? That?s over 9% per annum.
Let?s not forget the income that is generated is indexed linked to RPI and is tax-free. So when you consider the overall lifetime of the scheme (running for 25yrs) a 4kWp system would be expected to provide over £36k and the initial capital cost would be recovered in just over 9yrs.
Put simply Solar PV continues to be one of the best products available to provide reliable and good healthy returns on investment.
And there?s more…
Imagine be able to ensure an income that will insulate you against price rises in the cost of electricity.
The cost of energy is continuing to soar. The proposed Solar PV generation feed-in-tariff rate of 21p / kWh is still well above the average cost of electricity at 13p / kWh. Whilst the feed-in-tariff is index linked to RPI it is recognised that the cost of electricity will rise at a higher rate. However even with allowing electricity costs to rise at 6%/annum and RPI at a lower 4%/annum the new proposed Feed-in-Tariff rate would still be higher than price of electricity after 25yrs.
Overall investment in Solar PV will not only help reduce carbon emissions and allow you to generate clean electricity free to use, but also provides a great financial return on your investment.
* Annual system performance assumes system is installed on a typical domestic property facing either SE / SW with little or no shading.
** Income takes into account feed-in-tariff @ 21p / kWh, export tariff @ 3.1p / kWh for deemed 50% of system generation and bill saving for 50% of system generation.
Returns over 25yrs assume tariff increases in-line with RPI at 4%/annum; and system performance reduces to 80% at year 25. Returns do not take into consideration any cost for system maintenance.
For further information and a free no obligation survey contact
EnergyMyWay ? Berkshire ? Tel: 0118 907 1340.