Solar Panel Guide Discussion

Cardew

Martyn1981 wrote: »

That's a fair point, maybe I shouldn't have corrected for the error, and applied an extra 5 years PV income (non FIT) and compounding.

It's looking better and better for the OP!

Mart.

That wasn't the issue!

The OP said:

£7000 over 25 years in a basic fixed rate savings (3%) account returns well over £12500 that`s after tax.

So the OP was correct.

The Green Hornet thought he meant 3% after Tax - which he didn't. No big deal.



However you couldn't miss an opportunity;)

Nope Green Hornet is right

silverwhistle

!!!!!! guys, can you stop argueing about how many angels can dance on the point of a needle. A little less testosterone might improve the discourse.

For what it's worth my date for the return to the UK is now decided and I may have time to get PV installed before the August rate reduction, although I think it unlikely.

However, my decision is based not just on spreadsheets, which can only be valid at a particular point in time, and on guesswork - however educated that giuess might be. There are any number of other issues around the investment I might make:
- is my cash ISA paying more than inflation? NO, a long way no.
- am I happy with my bank for this? NO!
- would I prefer to convert some of my liquid assets into physical ones? YES
- which would give me the better return: new kitchen, new car or PV??

Then there are the wider issues of security of supply, keeping costs down as I get older and less able to earn, the strategic issues, the longer term green issues. As a systems analyst in a past life there was a fairly wide remit for systems investigations: thank gawd I wasn't an accountant.

Martyn1981

silverwhistle wrote: »

For what it's worth my date for the return to the UK is now decided and I may have time to get PV installed before the August rate reduction, although I think it unlikely.

Hiya. Tiny bit of bad news, the FIT rate changes on the 1st July, not 1st of August. The current 'quarter' was shortened to bring review dates into line (with something? can't remember, maybe just calendar qtrs).

Anyways, the good news is that the degression rate is only 3.5% (15.44p becomes 14.90p), and obviously this doesn't affect leccy savings or export earnings, so possibly a 2 to 2.5%(?) overall reduction in income.

Best of luck with the move.

Mart.

Edit: You'll then have 3 months till the next rate change. If they stick to the same rules, then the degression will be based on the qtr one before, so the 1/10/13 rate will depend on the MWp installed in May and June - figures will be published at the very start of July, but a short qtr is less likely to hit the 100MWp degression point (unless proportionalised?) ...... but installs have picked up a little bit! M.

silverwhistle

Thanks for that: I'd already assumed a lower rate in my calculations, but you've saved me a bit of delving for the details.

I'll be having to get new white goods and any new bulbs I hope to get LED so my usage will be pretty low. I found the last bill from when I left the UK and it was for less than 6 units a day for Jan - March, and here in Italy I use around the same, and that's with electric water heating. I can see a 1kw immersion heater and various timeswitches on the shopping list and going the Ebico route!

The_Green_Hornet

EricMears wrote: »

3% gross would leave 2.4% for a 20% rate taxpayer.

£7000 @2.4% for 25 years would yield £12,664.76

The only problem is that there are currently no fixed rate bonds available at 3% gross (according to moneyfacts.co.uk), so it is all a bit immaterial.

EricMears

The_Green_Hornet wrote: »

The only problem is that there are currently no fixed rate bonds available at 3% gross (according to moneyfacts.co.uk), so it is all a bit immaterial.

You could do a bit better than that. For instance, buy "UK Gilt War Loan Stk" @82.135 and the nominal 3.5% interest gives you a yield of 4.26% details

It hardly seems necessary to add that this does not constitute financial advice - it's just an example.

John_Pierpoint

EricMears wrote: »

You could do a bit better than that. For instance, buy "UK Gilt War Loan Stk" @82.135 and the nominal 3.5% interest gives you a yield of 4.26% details

It hardly seems necessary to add that this does not constitute financial advice - it's just an example.

This loan to the government has never been redeemed since WW1 ie it will soon be happy 100th anniversary for the patriots who bought the stuff for £100 back then.

Anyone want to bet on the value of £100 in 25 years time, as it seems that the government is going to try to pull the same trick again, faced as it it with another "record" deficit.
Your choice - buy gilt edged paper or put something real on your roof.
>

EricMears

John_Pierpoint wrote: »

This loan to the government has never been redeemed since WW1 ie it will soon be happy 100th anniversary for the patriots who bought the stuff for £100 back then.

Anyone want to bet on the value of £100 in 25 years time, as it seems that the government is going to try to pull the same trick again, faced as it it with another "record" deficit.
Your choice - buy gilt edged paper or put something real on your roof.

Indeed it hasn't - nor is it very likely to be redeemed very soon (but an instant 25% profit if it were )

Highly unlikely any of the individuals who originally bought it are still alive & holding on to it. There is apparently a reliable secondhand market in them.

Although the idea of a new 100year bond issue was recently discussed, it seems unlikely to be happening.

Sirlaughalot

Cardew wrote: »

However £7,050 is way above the going rate for even a 4kWp system.

Then if you invest each year(at your 3%) all the money you save from reduced bills and FIT income, you come to another total.

Then the cost of any repairs needed??

Etc Etc.

Thanks Cardew,

What price are you talking about then as these figures were supplied by the energy trust site based on the details i supplied

Sirlaughalot

The_Green_Hornet wrote: »

I doubt if you can find a basic fixed rate savings account that will pay 3% after tax.

Hi GH,

Just used the 3% as a general ball park figure for a 25 year investment. Historically interest rates have never been this low and over the next 25 years i think 3% is a conservative figure!