| No
Bank Offers This level of Investment
Everyone knows
that solar is clean, green and silent. It’s
probably the most efficient renewable micro
generator of energy available having huge
life cycles, low visual impact on the environment
and significant carbon reduction capabilities.
So, what does
it all mean in terms of cash savings and co2
reductions?
Take our 4kw
system, for example, this has a cost of around
£10000 fully installed. If we assume
the property in our example is based in Swindon
and if positioned on a South facing roof at
a typical angle of 30 degrees the amount of
energy produced is approx. 3480Kw in the first
year. This translates into three benefits:
- 1. FiT payments
– paid at a rate of £0.21 per
Kw – hence a payment in year one of
£908
- 2. A reduction
in your electricity bills by 52%. If we
assume the present cost of 14.4p per unit,
this gives a net saving of £125 in
year one
- 3. A payment
for 48% of the 3480Kwh – i.e 1740Kw,
at the rate of 3.1p per unit paid to you
by your electricity provider for the value
of the excess energy sold to them (exported)
so a payment of £52 in year one
From the above
a total benefit can be expected equating to
£908 in year 1 so if we take the cost
of the system at £10000 and divide it
by £908 and it shows the system will
pay for itself in year 11.
The benefits
don’t stop there because the FiT payments
will rise each year in line with the Retail
Price Index (currently at 3.6%). Also the
amount of money you save and sell back will
rise each year with inflation and over the
past few years this has been 5% per year.
On the other
hand the performance of a solar panel or array
will reduce each year; little in the first
10 years but increasing thereafter. The performance
of our panels is guaranteed to be no lower
than 80% of the new module’s performance
in year 25.
It should be
noted that the Feed-in Tariffs rates payable
to you over this period by the utility companies
are linked to the Retail Price Index (RPI)
and will automatically increase with RPI every
year. No maintenance costs have been included
in our calculations (e.g. replacing the inverter
or inverter components). Therefore, if we
look at the return of the above system and
the solar arrays performance reduces by 20%
decline (i.e. 80% power performance after
25 years), this system, at the end of 25 years,
will have provided a minimum payments and
savings package to you of £20,700. Not
bad for a £10,000 investment!!
Of course at
the end of 25 years, your Solar PV system
still has plenty of life left in it and although
you won’t qualify for FiT’s anymore,
you will still benefit from greatly reduced
electricity bills and payments for the energy
sold back.
Last but not
least, you will be providing a massive help
to the planet by reducing your family’s
carbon footprint to the tune of over 40 tons
over 25 years and even more with the full
expected life cycle of the Solar PV System!
At SolarShop
we pride ourselves on giving customers the
most accurate analysis of the potential performance
of any size PV system. This is vital in order
for you to make a buying decision based upon
data that can be relied upon in the years
to come. If you would like a FREE analysis
please do contact us on sales@solarshop.co.uk
or call 01256 352502.
NOTE –
we cannot provide a full analysis from Google
Earth – in all cases a site survey (approx
45 minutes) is necessary because Google can
often be 2 years out of date and it is vital
to accurately measure the exact roof angle
and account for any shading issues as these
elements have a critical impact on performance.
Figures calculated using Energy
Saving Trust Feb 2012
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