Free energy and water

deptfreemoneytart

In March 2014 I paid £6,815 to have 16 solar panels (4Kw) installed on my bungalow roof. This money in my Santander 123 account would have earned me £204.45 per year. Instead it has paid me back in Feed In Tariffs a total of £1565.84, that's £1156.94 more than I would have got from the bank.
Also, due to me getting free/reduced electricity during daylight hours and having a new boiler installed, my monthly dual fuel has gone down from £85 (British gas) to £34 (Extra Energy). Those solar panels now pay for my Gas, Electricity and my Water bills year after year. I've had 4 companies supply my energy in the past 4 years.
Other things done to improve costs and comfort include: Had the cavity wall insulation checked and refilled.
Had a shower installed to reduce water usage also, installed 3 water buts in my garden to use less water, I has a water softener installed to clean my pipework and make my appliances work better and more efficiently.
I have done all of the above by applying for 0% credit cards and when one runs short of date I apply for another one and transfer the amount left on the first card to the second card.
I haven't actually paid for anything yet. I kept saving my money in my 123 account earning 3%. In March 2016 I paid off my mortgage by doing all of the above and now I can sit back and pay off all of the credit cards as their 0% date runs out.

For most of the above I got the ideas from moneysavingexpert.com, so thanks Martin and the team, I can now retire in comfort in the knowledge that I don't have any energy bills to pay for the next 18 years.

JC

Cardew

deptfreemoneytart wrote: »

In March 2014 I paid £6,815 to have 16 solar panels (4Kw) installed on my bungalow roof. This money in my Santander 123 account would have earned me £204.45 per year. Instead it has paid me back in Feed In Tariffs a total of £1565.84, that's £1156.94 more than I would have got from the bank.


JC

We have this discussion quite a bit in the 'Green and Ethical' section. Here is a quote:

As has been mentioned here before, you need to be very careful comparing percentages of an investment where you are sacrificing your capital for future returns against a savings account where the capital is always available.

Without denigrating your achievements there is a tendency to make the figures appear more favourable than reality.

I am assuming your FIT return and export income(£1566) is for exactly 2 years?? or is it 26 months? The 3% interest on £6,815 is indeed £204.45 in the first year, but of course it will be compounded over the next 20 years. After 10 years you would have £9,200 in your 123 account.

Your income in FIT/export is approx. £780 pa(2 years) or £720(26 months). There are a lot of unknown variables(inflation rate/usage of generated electricity etc) but it is reasonable to surmise that it is not until you have had your panels between 8 and 10 years will you have 'broken even'.

Your reduced energy bills are largely down to other measures - new boiler, insulation etc. Those who have panels, and WHICH put the savings on electricity bills at between £50 and £150 from solar generated electricity.


Will £780 - less £200+ lost interest - pay for your gas/electricity/water bills as the post states>

Also it is quite possible you will need repairs over the next xx years - a new inverter and fitting costs around £1,000.

Lastly in case anyone is persuaded by your enthusiasm to get panels fitted now, the return from FIT is a small fraction of the sums you have been receiving.