Parents 76yo getting solar panels installed!

alleycat`

If they are getting the install done and they own the equipment then they get to use the electricity generated AND they get a FIT (Feed in Tariff) payment directly to them @X pence per KW depending on when it was / will be installed.

I think originally it was @40P and was really worth doing.
Now it is down to around 20P i think so the ROI is longer from that side but the cost to install has come down markedly.

The panels should be guaranteed for 25 years but the inverter will probably need replacing at around the 10 year mark (so another outlay at year 10).

The Lady up the street made about £600 in the 8 months where it "works well" (at our elevations), she'd struggle to make another £100 for the other 4 months due to the daylight hours reduction and the angle of the sun related to the location of her house.

She also has minimal electricity bills during most of the summer months (which you have to factor in).

I imagine the break even point on it will be around year 15 (my best estimate) assuming that electric bills don't keep going up.

If the bills do go up then it might work out even better ROI.

I'm not 100% sure how it behaves in a power cut, but i suspect it shuts down (so they might want to consider that if they think it will make them self sufficient).

LutonGirl

My 86 year old Dad also got a bee in his bonnet about solar panels. My sister and I were there when the surveyor came and asked all the questions we thought Dad wouldn't.

There were two areas of doubt for us. 1) the amount of years needed to enjoy payback after he'd outlayed £10k - at 86 we really didn't think Dad would see the benefits. 2) the surveyor was talking about leasing the airspace above the house. All seemed total nonsense to me, but yes, that's what you do. Should the house ever be sold, the lease for it would need to be dealt with separately and if the buyers don't want the panels... well, it all seemed a huge faff and Dad went off the idea and we were pleased.

Fast forward 3 months, he died unexpectedly so definitely wouldn't have seen any payback, plus, we don't have to go through the rigmarole of trying to get out of the contract.

I'm sure solar panels work really well for some. My 40 something friend for instance had them installed about 5 years ago and loves her free hot water. But for an elderly person, probably not the best idea.

alleycat`

LutonGirl wrote: »

My 86 year old Dad also got a bee in his bonnet about solar panels. My sister and I were there when the surveyor came and asked all the questions we thought Dad wouldn't.

" the surveyor was talking about leasing the airspace above the house".

Different situation.
This was the "rent a roof" version of the scheme.
In the case you describe there should have been no costs to your father at all.

The fitters would install, maintain and retain all rights to the gear for 25 years and they would get the FIT payments (which is where they make their cream).

Your dad would have got the free electricity generated and that was it.

If you own the house and plan never to move this isn't always a bad idea, but if you have a mortgage and / or plan to sell, it can make it tricky as you've guaranteed someone your roof space for 25 years.

jennifernil

We have a 4 Kwp system, the most you can install without any "red tape". We have had ours over a year, so are on the highest rate of FIT. Roof faces almost straight south, no shading from trees or other buildings.

Our break even time is 8 years (allowing for the cost and loss of interest on that amount).

Now that the FIT has been reduced so much, you should get a similar system for around £6k. I have seen claims that you can still break even in 8 years, but have not checked the maths.

At 76 years of age, I think I would be spending the money differently.

FIT would not be as much as £1000 now for a 4 Kwp system.

EDIT: checking present figures.......

The current rate is 16p per KWH generated, plus an export tariff of 4.5p for half of that amount.

We have generated about 3300KWH, so multiply that by 18.25p, that's around £602 per annum.

Without taking loss of interest on the capital into account,it looks like the break even point is then 10 years minimum.

When the saving on bills is taken into account, it gets a bit trickier as it depends on how you use electricity. People at home all day can make the best use, so good for the retired.

We look at any saving there as a bonus, one which will increase as prices rise, and have not factored it into our equation.

All things considered, around 10 years to break even at today's prices is quite possibly about right.

ljonski

A neighbour of mine sells them and he has told me that it is 10 years before the saving comes into effect. if they need to sell within this period then they could add it onto the cost of the property.

LutonGirl

alleycat` wrote: »

Different situation.
This was the "rent a roof" version of the scheme.
In the case you describe there should have been no costs to your father at all.

Thanks Alleycat, you've jogged my memory. Yes, you're right, that was the rent a roof version. He was also offered the buy outright version.

Either way, I'm glad he didn't go ahead under the circs. He wouldn't have seen any payback, bless him.