Using pension savings for solar panels

gadgetmind

vax2002 wrote: »

like all schemes thought up by politicians including pensions, they can be revoked at the flick of a pen.

But you don't understand, the government have promised that they'll keep forcing the utilities to pay this money.

With this in mind, I have instead invested in the utilities.

Zelazny

Loughton_Monkey wrote: »

Have you not heard how bad this is? It is, I think, being reviewed for legality. It is 90% certain that those who have accepted these 'enhancements' will be eble to get compensation for an equivalent of 'mis-selling'.

As an aside, this bugs me. Just like the PPI mis-selling. People who are not sensible and go for all sorts of dodgy things get the benefits of whatever they went for, plus at a later date they get their money back? Where's the incentive to be careful with your cash?

Your argument above is a bit backwards - if there's a good chance the OP will get the money back if it all goes wrong, then surely that makes a better argument in favour?

thenudeone

Joesdad wrote: »

Should have explained sorry, my wife's previous company is asking her to move her pension, and are offering a cash incentive to do that. So the money is there I just can't decide the best way to reinvest

One thing is for certain, and that is that you will not be able to invest it in solar panels for your house.

If she wished to, it might be possible to transfer the pension to a bespoke SIPP and invest in all sorts of exotic investments including commercial property, but she would not be able to invest the SIPP money into an asset from which she obtains a benefit.

snowcat53

Why do you think that's certain? The OP described it as a cash incentive.

thenudeone

I had presumed that the incentive was in the form an increased transfer value, but that may not be the case.

I'm not sure about the legality of offering a true cash incentive upon a pension transfer. No doubt more knowledgeable posters will come along
soon.

If someone were to offer me cash to transfer my pension, it would be enough to make me think that I'm probably getting a much better deal by staying!

snowcat53

thenudeone wrote: »

If someone were to offer me cash to transfer my pension, it would be enough to make me think that I'm probably getting a much better deal by staying!

Spot on and I think we are unanimous on that point. Whether Solar panels are a good investment or not is really not the issue here - let's leave that to the other boards.

atush

It doesn't matter if cash in hand or not. It matters how much pension will this cost the OP in the end. And if a one off cash payment to give up pension rights all the more important.

I can see how solar panels would benefit a homeowner (if subsidised and an FIT inplace). What I can't (and I don't think anyone else here can) see is that spending future pension income, or lump sums that should be invested to provide for old age should be spent in this way. Very Foolish.

cypher007

vax2002 wrote: »

The only advice I have on this is only install them with a view to cutting your own bill.
The schemes for feed in tariffs and incentives are just that schemes and like all schemes thought up by politicians including pensions, they can be revoked at the flick of a pen.
In simple terms do not trust any investment on anything that relies upon politicians as a return.

i was worried this could happen, but it is not so. you sign a 25 year contract with your energy supplier, not the government, if they pull out it would cost them dearly.

i would not buy a house with solar panels already on it as i want to have my own system fitted, giving me a nice return .

i cant see the FIT scheme lasting for ever at its current levels, maybe the new contracts will have progressively lower tarriff payouts, as more and more people signup.

p.s. why do you think companies are offering free solar PV systems. there not stupid. they get the FITS, which could be maybe £25k over the 25 year contract.