Free solar panel discussion

Ken68

It gets worse....didn't I read somewhere that you are also supposed to factor in a 10% discount rate to the future payback.
Equivalent to saying that you would sooner have £900 today instead of a promise of £1000 next year. I don't understand it either.
ps....from Mike Berners Lee ' The Carbon Footprint of Everything'..he also quotes Chris Goodall, so maybe from him. Incidentally an 1800 kw unit costs 3.5 tonnes of CO2 and saves 50 tonnes in its lifetime.

Cardew

Ken68 wrote: »

It gets worse....didn't I read somewhere that you are also supposed to factor in a 10% discount rate to the future payback.

New installations* get a reduced rate FIT from April 2012 and it goes down each year after that.

* i.e. installed after April 2012.

Existing installations get the 41.3p/kWh inflation linked.

As prices of panels seem to be reducing and there are ever more firms getting MCS accreditation, the theory would suggest that March 2012 is the best time to install.

However it is obviously possible that the Government might decide that the FIT subsidy is far too high - and with firms cashing in on the loophole for obtaining subsidies meant for individual properties - they could reduce dramatically the FIT rate - as other countries have done.

Jon_Tiffany

Cardew wrote: »

New installations* get a reduced rate FIT from April 2012 and it goes down each year after that.

* i.e. installed after April 2012.

Existing installations get the 41.3p/kWh inflation linked.

As prices of panels seem to be reducing and there are ever more firms getting MCS accreditation, the theory would suggest that March 2012 is the best time to install.

However it is obviously possible that the Government might decide that the FIT subsidy is far too high - and with firms cashing in on the loophole for obtaining subsidies meant for individual properties - they could reduce dramatically the FIT rate - as other countries have done.

Cardew, I think you may have mis read Kens post.

He is talking about the way in which an investment is valued, not the way in which the FITs reduce over time for new installs.

For example, which is worth the most -

£100 today
£100 in 10 years
£100 in 100 years

For many, the last option could be considered as worthless as you wouldn't even be alive

hansi

Home sun man rang me today, coming to see me tomorrow.:beer:

Gizmosmum_2

If it's any help my accountant has broken down the prices, fit and savings and worked it out on a discounted cashflow basis (I don't know either ...:o) but basically what he says is without any over rated assumptions he reckons it's a long term investment that provides 3% real return on investment and 2% ish if you don't take the free electric. He reckons as an investment potential it's a bit like investing in shares when they were doing well in the 80's.

If you're a financial boffin this'll mean something, if not I apologise for boring you ..;)

Cardew

Jon_Tiffany wrote: »

Cardew, I think you may have mis read Kens post.

Thanks, you are probably correct - two plus two makes ???

Doc_N

Gizmosmum wrote: »

If it's any help my accountant has broken down the prices, fit and savings and worked it out on a discounted cashflow basis (I don't know either ...:o) but basically what he says is without any over rated assumptions he reckons it's a long term investment that provides 3% real return on investment and 2% ish if you don't take the free electric. He reckons as an investment potential it's a bit like investing in shares when they were doing well in the 80's.

If you're a financial boffin this'll mean something, if not I apologise for boring you ..;)

Interesting. By 'real return on investment' he'll mean the return on top of inflation, and it's extraordinarily difficult, if not impossible, to find an alternative investment paying 3% over inflation with so few risks attached.

It's as good an investment as you're likely to get - with the added bonus that if energy prices really take off, you'll get an element of protection.

Ken68

Well, at age 75, don't think I'll bother, and it makes sense to spend capital on something more durable, like a strong house, or a business or good education.

Cardew

Doc_N wrote: »

Interesting. By 'real return on investment' he'll mean the return on top of inflation, and it's extraordinarily difficult, if not impossible, to find an alternative investment paying 3% over inflation with so few risks attached.

It's as good an investment as you're likely to get - with the added bonus that if energy prices really take off, you'll get an element of protection.

True!

However your 'money' is on a roof and not in a bank account and it will be 10 to 15 years before you start to show a profit. Not exactly a flexible investment.

hansi

Home Sun are coming to see me tomorrow to discuss the "free" solar panels. I believe I fit the criteria, but I have just checked my electricity bills for the last year ( we are low users")and it's just on £200. I don't really think I'll be saving that much by having the panels fitted with all the hassle that involves.