Should I cancel my Solar PV order ?

Sarah36_2

We have paid a deposit for a a 4kw system to be fitted in January 2012.
I the light of the FIT review published yesterday should we be cancelling our order and if so will we get our deposit back (paid by cedit card) ?
At the proposed 21p tariff it will not be viable for any domestic installation.

[Deleted User]

Well it seems to be clear that even though a deposit is paid you will still end up on the reduced tarrif.

If it was me I'd be looking to cancel as the figures simply do not stack up at current PV install prices.

I guess it is possible that the govt might make concessions for people that have paid deposits but I for one would not want the stress of waiting to find out...

Our install is booked for just over a week away and I've had a good stress to myself though all will be fine.

HalloweenJack

the proposed 21p tariff IS viable for a domestic installation - its still greater than the rate of return from a savings account! its also is still higher than ALL other renewables!

it just means the payback will be 18 years instead of 10

grahamc2003

Sarah36 wrote: »

We have paid a deposit for a a 4kw system to be fitted in January 2012.
I the light of the FIT review published yesterday should we be cancelling our order and if so will we get our deposit back (paid by cedit card) ?
At the proposed 21p tariff it will not be viable for any domestic installation.

Whether you should cancel or not depends on the reasons you ordered in the first place. If, as has been stated on these boards, most orders are for the 'green' aspects of generating renewable energy and not the financial aspects, then there's no reason to cancel.

If you signed up as an investement to get a 11% index linked return, and a 5% index linked return isn't acceptable (or whatever your particular return is), then you need to cancel (depending on the level of the deposit of course).

No idea whether you'll get your deposit back. Isn't that what deposits are for - if you cancel you lose it? Not sure how much deposit you paid, but it may have all already all gone to the salesman as commission. I'd write it off, I think you'll be very fortunate if you get it back (whether or not you have a right to its return), bearing in mind the state the installation companies now find themselves in. I'd also think about the value of any guarantee the installation company gives you. I expect many will close (when the writing is on the wall, the aim for the directors is to extract as much cash as legally possible before abandoning it - they can always start a new company when the dust has settled).

[Deleted User]

HalloweenJack wrote: »

the proposed 21p tariff IS viable for a domestic installation - its still greater than the rate of return from a savings account! its also is still higher than ALL other renewables!

it just means the payback will be 18 years instead of 10

18 year payback!!!!!!!!!!!! - thats very poor and with a savings account your capital is not at risk which you can take with you when you move house. My payback is six odd years which suits me, would not even consider it otherwise...................

HalloweenJack

given that at current rates - it takes 3 1/2 houses worth of use to pay for 1 house with solar panels - its a hugely disproportionate system; and quite rightfully is being changed as NO other renewables pay out so much.

[Deleted User]

HalloweenJack wrote: »

given that at current rates - it takes 3 1/2 houes worth of use to pay for 1 house with solar panels - its a hugely disproportionate system; and quite rightfully is being changed as NO other renewables pay out so much.

I know... my other renewable system pays zilch desipte all the hype and promises so only getting PV to get money back out this flippin govt

chris1973

it just means the payback will be 18 years instead of 10

I've noticed a lot of the guarantees with some of these units generally ends at around 10 years, so if you have a 10 year warranty, then if after 10 years something goes wrong with a panel(s) or the control equipment needs replacing then its not exactly cheap or easy to just pop out to Argos for a new panel - any maintainance or repairs from then onwards outside of the warranty will add to the original cost and so the payback period increases further.

Its also important to look at what each of these warranties actually covers, as there appears to be a confusing array of tiers of warranty cover ranging from "product warranties" to "workmanship warranties" to "performance guarantees".

A example product may have a 20 year performance gurantee but only a 5 year manufacturers defect warranty, so ask exactly what this means and what cover each provides and what you are liable for from the date of each expiry!.

Its important to know what these warranties cover as far as parts and labour and exactly what you are liable for thereafter, so you can make an informed decision and work out what you could be paying out for in repairs, if things go wrong after only 11 or 12 years of ownership and they stop working and require expensive diagnostic labour / replacement parts before you've even got back your original outlay on the installation.

Some products only carry a 5 year warranty as far as workmanship cover goes, essentially leaving you open for paying out of your own pocket for 13 years of that payback period, for things which are no longer covered under that banner.

Edit:- here is such a warranty taken from a website:-

We guarantee all of our workmanship will be free from defects for 10 years from the
date of commissioning and that all equipment and materials have been installed in
accordance with manufacturer specifications. In the first 10 years after installation we will
correct free of charge any fault arising in the system as a result of defective workmanship by ********** Ltd

Where there is a need to claim on a manufacturer’s warranty within the first 5 years we will
make the claim from the manufacturer on your behalf and we will replace the faulty
equipment free of charge.
PV panels come with a 5 year defects guarantee and a 20 or 25 year performance
guarantee, guaranteeing that after 20 or 25 years they will perform at a minimum of 80% of
their initial performance rating.

Okay, so on the surface of it this installer guarantees their workmanship (i.e that the panels wont slide off the roof etc) for 10 years, but the panels themselves are only covered against failure through manufacturing defect for 5 years, so if a panel stops working after 5 years 5 months, then you'll be forking out for a brand new one out of your own pocket, and no doubt the labour for any fault finding to identify the fault and removal / refit of the faulty panel(s).

The 'Performance' guarantee just indicates that for 20-25 years the panels still in service will still supply at least 80% of the original stated output, assuming that it hasn't failed completely through a manufacturing defect - of which is only under the manufacturers warranty cover for 5 years.

Since the panels possibly make up the lions share of the entire installation cost, its not surprising that they carry the least period of warranty. However it also means that if one or more of the panels fail after 5 years of service, you will be liable for supply and fitting of new ones.

Confused yet?

All of this assumes you are physically buying the panels, and not just being a rented roof provider!.

HalloweenJack

the item which will need replacing in the 25 years is the invertor - doesnt matter who `owns` the installation the invertor *usually* lasts 10 years so will need replacing at least twice in the 25 years

Sarah36_2

We have now been offered a 3.5kw system guaranteed to be installed and registered before the 11th Dec 2011.

Not sure how we can check the timescale for registration to have any faith in this idea ?

How long after fitting does registration take ?

stoem

I've paid my deposit on a small 8 panel system with Tesco 10 days ago - no installation date yet. Then today the news that all the assessment figures we based our purchase decision on have now been turned on their head. Considering my options now... I'm not up for a game of playing 'will I get the higher FIT payments'.

I guess there is nothing wrong with changing the rules if the economics of the scheme change, but talk about short notice. I now have less than 6 weeks to get everything wrapped up - that's ridiculous.

And how can the consultation run until the end of December but the rules change on December 12th? I wish the government was this quick when it came to changing more pressing issues!

:mad: