Free solar panel discussion

Doc_N

Gizmosmum wrote: »

Me too! My mate is working with a company buying in 000's of these things and the unit cost without installation and vat is about 8k for 2kw system and that's after a drop of 30% this year.

That makes the £10K Tesco price for a 2.1 kWp system pretty reasonable then, taking account of labour, scaffolding, warranty etc.

Cardew

Pincher wrote: »

If this frenzy carries on, the Un-FIT customers will be subsidising the FIT big time.

What if the energy companies introduce a FIT-surcharge?
I predict an an increase in the number of units in Tier 1 tariff.

That is exactly what is happening - and was always intended to happen.

All electricity customers pay into a kitty from which the FITs are paid.

This is why IMO it is wrong that firms like ASG etc can collect the FITs for their 'free' systems. It is bad enough that those unable to benefit from solar PV - rental properties, flats, wrong roof, shaded etc - have to provide the subsidies for those with PV, but for the subsidy meant for individual houses to go to commercial firms is a disgrace.

grahamc2003

Pincher wrote: »

If this frenzy carries on, the Un-FIT customers will be subsidising the FIT big time.

What if the energy companies introduce a FIT-surcharge?
I predict an an increase in the number of units in Tier 1 tariff.

There's no 'what if' about it. The regulator has given the go-ahead for all the costs the suppliers incur (including system dev costs etc) to be passed on to consumers. In this highly regulated industry, 'given the go-ahead' means the same as 'will be passed on'.

The reason you sometimes see statements like 'the increase in domestic bills due to the fit will be £100pa in 5 years time' (for example) is because the majority of the extremely high costs of this subsidy are to be piled on commerical and industrial users, I can't remember the ratio, but something like 10% domestic, 90%commercial. That itself is more smoke and mirrors, with the main publicity going to the low domestic consumer cost increase. Of course, the extra business costs eventually get passed on to consumers, or businesses suffer in other ways.

Anyhow, no free lunch in this whole system, just a pointless, costly and benefitless subsidy to a very inefficient manner of generating electricty (in the uk).

Jon_Tiffany

Cardew wrote: »

I do wish people wouldn't bandy about such figures without qualifying them!

Agree - you will only get 10% return with a very cheap system, just what that poster was saying you should avoid.

hansi

DancingBadger wrote: »

I think Homesun are indunated. I emailed them at least two months ago, but didn't get the following reply until last Wednesday (8/9/10). [Was going to post the link, but as a new poster I can't.]

Basically, it says they've done a desktop review of our property and that it appears to be eligible for one of the free systems. The roof needs to have a minimum of 30m2 of clear space; if not, they could offer another system 'Solarshare', which involves an initial payment of £500 and £5 per month for Solarcare.

One of their reps is supposed to be contacting us within 2-4 weeks to arrange a meeting. As the average semi-detached roof size is 70m2, it'll be interesting to see if he tries to tell us we don't qualify for the free panels.

Yes, I had that email on 19th August. Nothing heard since then! I'm in a block of four terraced houses with a south facing roof, wonder if they'll get out of that somehow;)

ninjaryder

Doc_N wrote: »

That makes the £10K Tesco price for a 2.1 kWp system pretty reasonable then, taking account of labour, scaffolding, warranty etc.

Yes i have recently paid £10,450 for a 2.3kw system from a local company and struck up a deal with them regarding work for me as i survey for insulation purposes,when the RHI comes out next year the FIT'S wont be paid to people whose houses are not fully insulated.

gjpountain

I'm contemplating investing £15,299 on a 3.92KW system.
Annual return including FIT payments and 3p export to grid and my own use of half the Electric produced was calculated at £1,453.87p
Just as an excercise I worked out the following:

1) If I left my money in the bank (now £15,299) earning 2.5% interest I would have a total of £28,363.49p in 25 years time.

2) If I buy the panels with the £15,299 and assume the payments go up each year by 2.5% RPI (government target) - starting at £1,453.87 (year 1).
If at the end of year one I put the money into a saving account and assume 2.5% interest and each year I add the income I calculate that at the end of 25 years I should have £65,741.31p.
Also, I still own the panels and they may give me a few more years electric production.

Any thoughts on my calculations - Have I got it right or I have missed some thing?

Doc_N

gjpountain wrote: »

I'm contemplating investing £15,299 on a 3.92KW system.
Annual return including FIT payments and 3p export to grid and my own use of half the Electric produced was calculated at £1,453.87p
Just as an excercise I worked out the following:

1) If I left my money in the bank (now £15,299) earning 2.5% interest I would have a total of £28,363.49p in 25 years time.

2) If I buy the panels with the £15,299 and assume the payments go up each year by 2.5% RPI (government target) - starting at £1,453.87 (year 1).
If at the end of year one I put the money into a saving account and assume 2.5% interest and each year I add the income I calculate that at the end of 25 years I should have £65,741.31p.
Also, I still own the panels and they may give me a few more years electric production.

Any thoughts on my calculations - Have I got it right or I have missed some thing?

You might find this of help:

http://www.reuk.co.uk/REUK-Feed-In-Tariff-Calculator.htm

You'll also need to add in the cost of a new inverter around every 8-10 years, plus, perhaps, a little maintenance. Still shouldn't substantially alter the thrust of the calculations, though.

gjpountain

Wow that link to the calculator is fantastic - wish I'd known about it before I started to work on the spreadsheet. The figures are similar without the deduction of tax on the interest. I suppose using a cash ISA would solve this to some degree but then again I suppose those who have enough money to invest in solar panels use their Isa's for stocks and shares.

Cardew

Another way to look at it is to calculate break even point.

The big difficulty is that there are several unknowns - i.e Generated output, consumption in house, inflation rates, interest rates, repairs and maintenance, cleaning, roof repairs, how long will you live in house etc etc. Also the calculations have to assume that predicted interest and inflation rates are linear, a 'spike' or dip in those rates can have a big effect.

Depending on how optimistic or pessimistic your predictions, you will break even in 10 to 15 years