I've been a massive fool...My planet UK Solar.

Gstyle007

Hi Hengus,


Thank you for taking the time to respond.


I have the figures in writing and have scanned them and would be more than happy to post them here if someone could explain how to do it. I have looked but cant seem to see how to attach a picture!


Cheers.

System

Gstyle007 wrote: »

Hi Hengus,


Thank you for taking the time to respond.


I have the figures in writing and have scanned them and would be more than happy to post them here if someone could explain how to do it. I have looked but cant seem to see how to attach a picture!


Cheers.

That's beyond me I am afraid. Where's a 5 year old when you need one.

Gstyle007

Hengus wrote: »

That's beyond me I am afraid. Where's a 5 year old when you need one.

Ha Ha, Ok Think I've found a way to do it!!!

Cardew

So annual savings for the LED lighting is £70.08 which means with electricity price inflation over 20 years you will save £5,754.06!!!


The reverse of the document assumes RPI and Electricity price inflation over that 20 years. Can you post the actual figures they use?

Gstyle007

Cardew wrote: »

So annual savings for the LED lighting is £70.08 which means with electricity price inflation over 20 years you will save £5,754.06!!!


The reverse of the document assumes RPI and Electricity price inflation over that 20 years. Can you post the actual figures they use?

It says: RPI: We assume the inflation rate at 2.5% and electricity prices at 8.79%.

Cardew

Cardew wrote: »

So annual savings for the LED lighting is £70.08 which means with electricity price inflation over 20 years you will save £5,754.06!!!


The reverse of the document assumes RPI and Electricity price inflation over that 20 years. Can you post the actual figures they use?

It says: RPI: We assume the inflation rate at 2.5% and electricity prices at 8.79%.

Mmmm.

Leaving aside the high assumed inflation rate for electricity prices, I make the savings figure for LED lighting much lower.

With electricity price inflation at 8.79%; if you save £70.08 in the first year you will save £76.24 in the second year(£70.08 x 1.0879), £82.94 in the third year(£76.24 x 1.0879) etc etc.

Adding together each years savings, after 20 years my calculations produce savings of £3,500 not £5,754. (can someone please check my figures)

I wonder if they have(incorrectly) used a spread-sheet that calculates savings assuming the £70.08(year 1) and £76.24(year 2) etc etc are left invested earning 8.79% interest??

e.g at the end of year 2 you will have saved £146.32 which earns interest at 8.79% so have £159.18 invested(£146.32 x 1.0879). To this sum you add £82.94 for the third year etc etc???

System

Cardew - I came up with £3431.82 for LED lights. A more glaring error is that the PV Solar 20 year total of £5143.38 has appeared at the bottom of the page as £12688.85 - a difference of £7556.47. Do you agree?

Gstyle007

Hengus wrote: »

Cardew - I came up with £3431.82 for LED lights. A more glaring error is that the PV Solar 20 year total of £5143.38 has appeared at the bottom of the page as £12688.85 - a difference of £7556.47. Do you agree?

I have only just noticed this myself and have no idea where they got that figure from surely it should have been the same as the estimate at the top of the page?


Think I need to ask for a more in-depth calculation of the figures from the MD, whether I get them or not is another matter he sounded quite defensive in his email.


Also on searching for details about the company I came across a PDF file where Myplanet had been called to a meeting by the R.E.C.C and were found in breach of several items of the consumer code.

Cardew

Hengus wrote: »

Cardew - I came up with £3431.82 for LED lights. A more glaring error is that the PV Solar 20 year total of £5143.38 has appeared at the bottom of the page as £12688.85 - a difference of £7556.47. Do you agree?

No I don't agree! I think you have missed the 20 years of 'energy savings' increasing each year by 8.79%


I can hardly make out the figures on the sheet.


There are two elements of the savings for 'PV solar'


1. The Feed in Tariff(FIT) and export payments use an assumed RPI figure of 2.5% for 20 years.


2. The 'electricity savings' will use an assumed inflation rate of 8.79% over the 20 years.


Using their(inexplicable) figures for the LEDs, £70.08 produced savings of £5,754.06 for 20 years at an electricity inflation rate of 8.79%. That means that £70.08 increased by a factor of 82.16(i.e. £70.08 x 82.16 = £5754).


If I read the 'energy savings' from the quotation correctly, they are given as £103.56. Therefor using their methodology for savings increasing by 8.79% over 20 years it is a simple case of multiplying £103.56 by 82.16 which produces a total saving of £8503.


The FIT and export savings for 20 years @2.5% are on top of those electricity savings - which accounts for the total of £12,688.

However as we agree that the LED saving figure is incorrect(we say approx. £3,500 instead of £5,754) - it follows that the 'energy saving' figure is incorrect. I believe that £103.56 pa inflated by 8.79% over 20 years is £5,172.

Thus I believe their estimated benefit of £18,442 is approx. £5,500 too high.

System

Cardew - I confess that without seeing the small print re assumptions I am struggling here.

We agree that the LED lighting savings are wrong and should be £3431.82 not £5754.06.

Taking each of your calculations in turn:

1. FIT plus Export = £217.02 in Yr 1 inc at 2.5% inc pa. This gives me a 20 Yr total of: £5543.70.

2. Electricity savings of £103.56 in Yr with 8.79% inflation gives me a 20 Yr total of £5174.90 not £8503. I used a simple spreadsheet and ran the calculation 20 years multiplying each years figure by 1.0879.

This gives me a total return of £14150.40 over 20 years assuming one agrees with the assumptions and unit cost for electricity.

My calculations may be out: put that down to advancing years.