solar panel quote

zeupater

ed110220 wrote: »

Surely the point is that the proposed system is rather small and expensive for what it is and the loan isn't a particularly competitive rate either, but from that you can't generalise about whether the principle is sound.

Say you have a 4 kWp system on a south facing roof at Frome.

You generate 3780 kWh/year.

This gives a FIT income of £544/year. Assuming deemed export of 50% you get £90 from export. Assuming you consume a quarter of your generation as a direct replacement for electricity bought at 15 p/kWh (a fairly conservative assumption?) you save £142. So in total you earn/benefit £776/year.

You buy the system for £6500 by extending your mortgage at 4% over 20 years, which costs you £468/year so you are £308/year better off.

Ed

Hi

There's no generalisation .... we're specifically looking at an overpriced 2.75kWp system costing £6500 with a 10year finance package at 5.6%, which effectively (on a current cost basis) absorbs almost all savings and FiT payments for the entire period of FiT payments, something which I tend to believe is a little more likely to be planned than coincidental.

I agree that there are other ways to look at financing which would/could be more competitive, however, the issue at hand is to convince the OP to look for alternative offers, which should/could be both cheaper and financed on more reasonable terms.

HTH
Z

Martyn1981

Hi Ed. Nail on the head there.

If you get a decent system, at a decent price, and finance it at a low level (such as in your example), then it can make a lot of sense.

The earlier example of 10% ROI might work, but would be tight unless financing is at a low rate.

The OP's situation doesn't look to work out at all.

Every install will be different, and the numbers should be double then triple checked especially if finance is needed.

Mart.

ed110220

zeupater wrote: »

Hi

There's no generalisation .... we're specifically looking at an overpriced 2.75kWp system costing £6500 with a 10year finance package at 5.6%, which effectively (on a current cost basis) absorbs almost all savings and FiT payments for the entire period of FiT payments, something which I tend to believe is a little more likely to be planned than coincidental.

I agree that there are other ways to look at financing which would/could be more competitive, however, the issue at hand is to convince the OP to look for alternative offers, which should/could be both cheaper and financed on more reasonable terms.

HTH
Z

Hi, sorry I should have said I was replying to the idea that borrowing for solar PV is generally not a good idea. If you get a more competitive PV system/price, say 4 kWp for £6500 then even 5.6% over 20 years leaves you better off by £236/year.

Ed

tunnel

fairycakes77 wrote: »

I am happy to spend time getting the best deal I just wanted to make sure I didn't already have it

You don't, a little bit more info and as you can see..the good folk on here will try to help you get the best deal, however you decide to finance it.

fairycakes77

Thanks for all your replies it gives me something to think about and I'm not rushing into anything especially with sk

samtoby

After shopping around we bought a 4kw system with Immersun for 5.5k - first quote was around double that