Solar installation do or don't

cdunne

I must be on some telemarketing list, I've got offered Wine and Diamonds recently (see:http://forums.moneysavingexpert.com/....php?t=4870331)

Anyway one which I was interested in was solar PV.

Some random company arranged for a representative from loveyourearth.co.uk to visit.

Their quotation is for a 2.6kW unit (total inc VAT for the materials and installation is £6583). Their figures quote a annual income of £614.35 but the sales rep said it would be much higher than this since those figures assume an average of 2 hours per day sunlight.

Now the question is is this a good investment? Given the average of 2 hours sunlight it I make that an absolute worst case (assuming all of the output is at the guaranteed minimum of 80%) pay back of 10.7 years and given they have a and potential life of 25 years it's an investment return of 7.5% AER over 25 years which isn't bad!

I'm possibly going to be putting the house on the market soon, when asked the rep said that you are still entitled to the payments from the panels installed on someone else's property (which I can't believe) but also the panels value will be paid back in the house value and houses with panels sell quicker.

What are others experience with solar panels? A bit of me thinks it's too good to be true (especially getting income from panels installed on someone else's property!)

Thanks,

Chris

Andy_WSM

cdunne wrote: »

I'm possibly going to be putting the house on the market soon, when asked the rep said that you are still entitled to the payments from the panels installed on someone else's property (which I can't believe) but also the panels value will be paid back in the house value and houses with panels sell quicker.

If you are thinking of moving then DON'T install Solar PV. It may even put some people off buying your house.

The system won't add value to the property, especially if you think that someone is going to pay a premium for them and then let you reap the financial rewards. It won't happen!

Smiley_Dan

cdunne wrote: »

Their quotation is for a 2.6kW unit (total inc VAT for the materials and installation is £6583). Their figures quote a annual income of £614.35 but the sales rep said it would be much higher than this since those figures assume an average of 2 hours per day sunlight.

That's a high quote, you should be paying about that for 4ishkWp.

Also, the income figures seem optimistic for 2.6kWp. But this might depend on where you live. Sounds more realistic, again, for 4ishkWp.

You can use this: http://re.jrc.ec.europa.eu/pvgis/apps4/pvest.php to estimate the energy you will produce, and then use the FiT rates to work out your income.

Cardew

cdunne wrote: »

I'm possibly going to be putting the house on the market soon, when asked the rep said that you are still entitled to the payments from the panels installed on someone else's property (which I can't believe) but also the panels value will be paid back in the house value and houses with panels sell quicker.

Leaving aside the high cost of that system and optimistic figures on income, it probably won't enhance the value of your house, and might create problems with the buyer getting a mortgage.


Whist it is technically possible for you to continue to get the income after sale of your house(look up 'Rent A Roof companies) it will need your solicitor to draw up a lease allowing you to have access to the roof and the house(for repairs/replacements) for 20 years.


A complete non-starter IMO