Solar panel installation

kamp013

Hi. I need some advice please.

I have had a quote for solar panel installation from Lloyds renewable enrgy Ltd.

The roof of my house would be able to have 16 panels and the back of my house is south facing.

Standard Assessment procedure:
Pkwh 3.92 x 0.80=3.186kwh
3.186kwh x 0.97%(from irradiance chart)=3.090 annual yield kwh

3.090 annual yield kwh x 16p(per kw current provider) = £494.40

£494.60 x 60% = £296.64pa

Saving:
£296.64 saving on electricity + £695.25 (feed in tarriff) = £991.89 overall yearly saving.

The total cost of installation is £7612.50 but I have to pay nothing. This cost is financed and I have to start paying from year 2 to year 11. Yearly payment is £950ish a year. Basically I am using the money generated by the solar panel + the money saved on my bill to pay the finance. After year 11 I start making the money.


Eon is my current electricity provider.

The system comes with 25 years warranty insurance backed) and the the AC/DC inverter has a warranty of 12 years.
I have been told that there is no maintenance required as there are no moving parts.

I have been told that currently the feed in tarriff is 21p and this is likely to drop to 16p from June 2012. So this is the time to have the solar panel installed.

How does this deal sound? Should I go with it?

Please let me know your thoughts
Thanks

utility_csa

Ensure you get a export mpan & a "fit" or "generation" meter with that.

Andy_WSM

utility_csa wrote: »

Ensure you get a export mpan & a "fit" or "generation" meter with that.

An export mpan isn't worth having on a system of this size. There was a short period where electricity companies would fit them free on request, but those days seem to have gone. The cost of having an export mpan & meter far outweighs any likely financial benefit. May as well stick with the 50% deemed export for the time being - this will likely be reviewed when smart meters come along anyway.

The generation meter should be standard if this is an MCS accredited installation - which it has to be if the OP is talking about FIT payments!

rogerblack

kamp013 wrote: »

3.090 annual yield kwh x 16p(per kw current provider) = £494.40

£494.60 x 60% = £296.64pa

This is - for most - a word that the swear filter will not allow.

Firstly - 16p is perhaps a little high.
Secondly - do you use at least 6000 units per year?

If not - then expecting the solar panels, which are only useful - most days - for 'baseline' loads - like the fridge, or a TV, perhaps a couple of hundred watts - to save you that amount is 'optimistic'.

Unless you have multiple baths powered by an immersion heater, on sunny days, and none in winter, you're not going to hit 60%.
http://www.energysavingtrust.org.uk/Generate-your-own-energy/Financial-incentives/Feed-In-Tariffs-scheme-FITs for example - estimates 100 pounds might be a more typical figure.

Secondly - is your roof unshaded from dawn to dusk?

Cardew

As stated above, the savings quoted are garbage!

You should be paying no more than 10p-11p/kWh for electricity. - 16p/kWh is possibly the tier 1 price?

If you have gas/oil/storage heating for central heating then any savings for heating water with an immersion should be costed at the price for gas/oil/off-peak electricity. Who uses an immersion heater on daytime rates as their only method of heating water?

Indeed use of an immersion heater to 'use up' solar generated electricity can actually cost money instead of saving.

It will be difficult for most people to save £100 off their bills.

I very much doubt if the 'insurance backed 25 year warranty' is worth the paper it is written on. Most of these firms will not be in business in a couple of years; they will have moved on to pastures new(perhaps double glazing will make a comeback!). I suspect that the insurance policy is dependant on the premiums being paid annually by the installer and the insurance company remaing in business.

kamp013

Thank you all for your replies on this thread. You have given me so much to think about. I currently use 3400 units per year. The south facing roof is unshaded from dawn to dusk. There will be a bi directional meter with the installation.

I will go back and ask the suppliers / Installers about the savings that are forecasted.

So this deal is not as good as it sounds. The finance charge would be £950 per year for 10 years and If the panels don’t make that money for me, I would have to make up the difference from my pocket. BUT even if I have to pay a little towards the finance, is it nor worth having this installed? As after 10 years It will save me money and hopefully make extra on top.

HalloweenJack

the system though will be there for at least 25 years... so 10 years payback and 15 years of income....

kamp013

I asked the suppliers about the 25 years warranty, i am being told that it is a manufacturers insurance backed warranty. I also asked if the savings are guranteed and was told "yes" and that I can go back to them if the predicted savings are no achieved. I don't know if I should believe this.

The suppliers will also register the panels with Eon for me so that I don't have any issues or delays.

How does this sound now??

espresso

kamp013 wrote: »

I asked the suppliers about the 25 years warranty, i am being told that it is a manufacturers insurance backed warranty. I also asked if the savings are guranteed and was told "yes" and that I can go back to them if the predicted savings are no achieved. I don't know if I should believe this.

The suppliers will also register the panels with Eon for me so that I don't have any issues or delays.

How does this sound now??

The salesman cannot possibly guarantee the predicted savings! You have said that your annual usage is 3400kW, surely you are not paying 16p per kWh for this! Have you never switched to a different supplier for a better deal?

Please explain "£296.64 saving on electricity" - how much of the predicted generated electricity figure could you actually use? e.g. are you at home during the day when most of the generation takes place?

"The total cost of installation is £7612.50 but I have to pay nothing" but you would be be paying significantly more than this by paying £950 for ten years especially as the "£296.64 saving on electricity" is not realistic and this would skew the predicted "£991.89 overall yearly saving".

Terrylw1

kamp013 wrote: »

I asked the suppliers about the 25 years warranty, i am being told that it is a manufacturers insurance backed warranty. I also asked if the savings are guranteed and was told "yes" and that I can go back to them if the predicted savings are no achieved. I don't know if I should believe this.

The suppliers will also register the panels with Eon for me so that I don't have any issues or delays.

How does this sound now??

Your FIT doesn't have to be with your current supplier so see who is best for you rather than them make the call for you.

Also consider the way it will be paid since some suppliers seem to struggle with them.