investing in solar panels

michaelmoon

I've been thinking about investing in solar panels for a while. Seems like the feed in tariff gives a much better return than leaving money sitting in the bank at the moment.
Has anyone else been thinking about this, or has anyone got a system installed?
Would be great to hear from someone who's got a system, so that I can get a realistic idea of what the return will be.

Mike

srcandas

michaelmoon wrote: »

I've been thinking about investing in solar panels for a while. Seems like the feed in tariff gives a much better return than leaving money sitting in the bank at the moment.
Has anyone else been thinking about this, or has anyone got a system installed?
Would be great to hear from someone who's got a system, so that I can get a realistic idea of what the return will be.

Mike

Mike from my research it all depends on:

location
roof/surface orientation
roof/surface area

Unless these are all very favourable (in my case not perfect but not bad) I concluded that I would have to think of it as a charitable donation to the planet. I saved far more through insulation/efficient bulbs/thinking before using/tuning thermostats/turning off standby modes than ever I could through solar panels even at the supplier published rates.

And taking long holidays in winter instead of summer (appreciate not an option for many).

But as electric prices rise I guess one has to keep revisiting :beer:

ps my research is 2 years old

jimjames

We did it last year and have excellent returns with estimated payback in under 6 years. The current return isn't quite as good but prices have dropped massively as well which has made a difference.

You'll get more info on the Green board where most of the discussion is around solar panels

http://forums.moneysavingexpert.com/forumdisplay.php?f=100

thenudeone

There are thousands of posts about solar panels in The Green & Ethical MoneySaving Board.

I invested £12k last year and am receiving a tax free index linked income of over 10% pa. Very happy.

Installation costs have dropped considerably since then, as have the subsidies/tariffs, but many installers are still suggesting returns of 10% pa on the new tariffs.

legoman62

I too, got in last year so am receiving the best FIT rates which increase each year (25 years)
Still think its a good deal now if you can afford it.
I estimate my payback to be less than 6 years.
Obviously this does not include any interest I could have made on my cash, but with current returns so low feel its a "no brainer".

michaelmoon

Thanks all.
I've got a south facing roof, which I've been told can fit a 6kW system, but I don't know whether just go for a 4kW system, so that I can get the best tariff rate.
I should probably do some sums to work out whether the extra energy I'll make from the 6kW system will be worth getting a lower tariff for.
Decisions decisions...

jamesd

The decision should be fairly easy. Prices are dropping rapidly. You can only do it once per property, usually. So you're probably better off waiting for further price drops until there is some sign of price stability. That way your investment cost will be minimised, while you'll still generate at least the same amount of power, more if more efficient panels become available at equally good pricing.

jennifernil

If you go for over 4kw I believe you need to speak to your DNO first to make sure they will accept it.

We have a 4kw system, we will probably get around 3100kwh this year. We estimate 8-10 years to break even taking the capital and loss of interest into account.

bigadaj

But surely this isn't an investment in the conventional sense. You haven't invested the money but spent it, so at 10% return you get your money back after ten years, ignoring inflation. Break-even is therefore getting on for fifteen years, by which time they are nearing the end of their design life.

ETROL

But surely this isn't an investment in the conventional sense. You haven't invested the money but spent it, so at 10% return you get your money back after ten years, ignoring inflation. Break-even is therefore getting on for fifteen years, by which time they are nearing the end of their design life.

All gone quiet then?

jimjames

bigadaj wrote: »

But surely this isn't an investment in the conventional sense. You haven't invested the money but spent it, so at 10% return you get your money back after ten years, ignoring inflation. Break-even is therefore getting on for fifteen years, by which time they are nearing the end of their design life.

Its a good point and raises the question of how the return is calculated as there are also unknowns such as RPI for the next 20/25 years.

Payback for us is under 6 years then the next 19 years is all tax free return. Pay out £9k for panels then over 25 years get back £28k FIT plus the original £9k as well. That assumes no RPI increase. Add that in and the return is even higher.