It’s a nice day with not a cloud in the sky and most people are out enjoying the sunshine. Not Mike though. Instead he’s inside hoovering and the washing machine is in full swing. Why? Because he has solar panels on his roof and on a day like this they’re providing his home with loads of free electricity.
Some people would see this as a drawback, but most solar owners would say it’s just a price to pay for 15% returns on his solar investment.
Mike lives in Suffolk and has recently had a 4kWp solar system installed onto his unshaded rooftop. It’s a south facing roof as well, so the perfect conditions for a solar panel array.
After the first 12 months of a life with solar, Mike is as delighted as ever. He says: “I had the system installed in 2012 at a cost of £6775,” he explains. “And in the first year of operation I have made £680 from the feed-in tariff (FITs) and about £320 in savings on electricity and gas, compared to my previous year’s usage. That’s a tax free return of almost 15 per cent. Not bad, eh?!”
If Mike’s solar panels continue to produce the goods, he’ll have recovered his initial investment in just a few years, leaving him with a further decade of profit. This is all thanks to the feed-in tariff which runs for 20 years.
The Solar Trade Association actually says the average return on investment is 12.6%, so in Mike’s case the solar system has slightly exceeded targets. But it’s clear that there’s a huge profit to be made anyhow.
STA Chief Executive Paul Barwell said: “The domestic solar market has been through a lot of twists and turns in its relatively short life to date, but it is much stronger now,” STA Chief Executive Paul Barwell told YouGen.
“Tariff reductions are now much more predictable and manageable. Although many people have installed in order to “beat” various tariff deadlines, the costs of solar have continued to fall, and electricity prices have continued to rise, meaning the returns are still broadly in line with those on offer when the scheme first launched – sometimes even better. As the upfront costs continue to fall, solar becomes affordable for more and more households, enabling them to cut energy costs and carbon at the same time.”
Despite the savings Mike has made though, he says not all reaction to his panels has been positive. He said: “People are still very sceptical. Even when I tell them about my experience, they still think there’s a catch somewhere. But people need to know that there’s no scam involved. It’s just a very good investment.”
“We are retired so we can use our heavy duty appliances during the day. Then on bright days, when we’re generating in excess of 3kW of power, I can use my 2kW convection heater and a couple of oil filled radiators and turn off the gas for more savings.”
Facts & Figures You’ll Love To Share
- [tweetable alt=””]With solar PV you’ll generate free electricity whilst earning a lucrative earning with the Government’s feed-in tariff.[/tweetable]
- [tweetable alt=””]Solar thermal panels help to heat hot water and benefit from the Renewable Heat Incentive payment for seven years.[/tweetable]
- [tweetable alt=””]Solar panels will last for 25 years and more, providing decades of savings and earnings and helping to avoid the National Grid rates.[/tweetable]
- [tweetable alt=””]Energy prices have doubled since 2004 and solar panels offer an escape from the clutches of the UK’s large energy suppliers.[/tweetable]