Given the recent cuts by the government to the Feed-in Tariff there appears to be a lot of confusion as to whether a solar panels investment is worth it. Under the old Feed-in-Tariff a household who had installed by the end of 2015 could earn around £13,450 over 20 years. For those who had installed earlier than this the returns were even higher.
However, the Feed-in Tariff is still available and this combined with the falling costs of installing a solar panel system means that currently the typical return on a solar panels investment is 4.8% over 20 years. This translates to earnings and savings of around £8,000 to £10,000 over 20 years.
According to an Ofgem gas and electricity market report energy prices have increased by as much as 32% over the past 5 years and this is set to continue. This means that the predicted savings over the next 20 years could be even greater, protecting you from increasing energy costs by allowing you to generate your own electricity.
How Long Will It Take To See A Return On Solar Panels Investment?
The length of time it takes to see a return on your solar panels investment depends on; the size and price of your system, the FIT rates at the time of installation and your energy usage. As the FIT rates will continue to decrease every quarter the sooner you are able to commit to a solar panels investment then the higher rate you will be able to lock into. Similarly, the higher your energy usage, the more saving you will make from reducing the amount of grid electricity that you need to purchase. You will benefit from up to 50% savings on your energy bills as soon as you install your solar PV system.
Remember, earnings from the Feed in Tariff and your energy savings are tax-free and index linked. So once you lock in to your feed in tariff not only will you be immune to any subsequent tariff decreases, but the rate will stay in line with any rises in inflation for the 20 years you receive the tariff payments.
What does the future hold for the Feed In Tariff?
The Feed-in-Tariff will continue to reduce every quarter, but in addition to this the government has now also introduced a quarterly cap on the number of households who are able to register for the Feed-in-Tariff. So, if you are considering a solar panels investment then the advice is not to hang around. Whilst returns are still good and the Feed-in Tariff can be locked into for 20 years and is index linked, the rate will continue to fall and availability is being reduced.
Here are your options:
|Option 1||Do nothing||You will then pay approximately £35,000 over 20 years for your electricity.|
|Option 2||Purchase a 16 panel solar photovoltaic system||You will receive a return on your solar panels investment over the next 20 years.|
|Option 3||Fully Financed Solar Photovoltaic System||With no initial outlay cost you get a system that covers the finance costs and generates an income over 20 years.|
Why Invest In Solar Panels?
Reduce Your Energy Bills
Generate free electricity and combat rising energy costs
Secure a tax-free income guaranteed by the government for the next 20 years
Earn an additional income by exporting your unused electricity to the national grid
Reduce your CO2 emissions
Add value to your property – solar panels can increase your property value and make mortgage providers more likely to lend.
Receive up to 4-6% return on your investment
Long lasting and require very little maintenance
The main concern for people considering solar panels is the cost and the return on investment. However, at Energy Gain UK we can offer a competitive finance package with zero upfront costs and still achieve an impressive rate of return.
Remember, if you are considering installing solar panels you need to act sooner rather than later to secure the best feed-in-tariff and rate of return.
Click here to contact us now to find out what your return on a solar panels investment would be.