Solar Panels at Home

[srhutch]

Anybody had solar panels fitted?

I have had a survey done and can have 16 panels fitted at no cost to me. 25 year contract (linked to house) and saving approx 1/3rd of electric bill.

Wife doesn't like them as they are ugly, but they would be on the rear of our house so only visible if you go to the end of the garden.

I'm researching heavily but would be interested to know of anybody on here who has done it or considering.

[peddy]

Can't help you with the query, but, if you don't mind me asking, how are you getting it free?

[MalcZ4]

Are they solar panels which just heat your water, or are they photo voltaic cells which generate electricity.

The latter cost a fortune to install, but they can generate an income.

[pvr]

I am very far in the process srhutch just in the planning application stage.

I am looking at a 10Kw system, costing 31K to install. The calculated return via feed in tariff is 12 - 14% ROI. Remember the feed in tariff is tax free,

As the assumption is made that 50% is returned to the grid, it is not monitored. In my case, I use about 5 times the UK average (hence the 10 Kw system) and therefore the savings are even more for me with regards to the electricity savings.

I have spent ages looking into this and had 7 companies quoting for this system, but whatever you do, do NOT go for the free option as that will cost you dearly. Give me a call if you want, but in summary it will be very difficult to sell your house in the future as you have mortgaged your roof and the "free" option is only good if you cant afford to buy your own system.

[pvr]

Mine is not on the roof by the way, I am putting it in a field so I can not see it as they are ugly ...

[pvr]

Peddy, the free bit is because the finance company is taking the feed in tariff and they are making the 12 - 14% return on investment.

Hence the general advice is - if you can afford it, you pay for it and take the income. If you can't afford it, let the finance company take the profits.

Just sooooo many pitfalls with that one though as you no longer own your roof and if you move, and the next owner does not want them, you have a major issue as you have contracted your roof out to a third party, possibly costing you a lot more.

I for one would never buy a house that I would not fully own and you can't even do any work on the roof without their permission.

[peddy]

Unless you're doing it to go green then there's no point really as It would take at least 7 years to break even.

Also, with all the electricity bills rising does it mean your ROI increases?

[doofus4000]

tubes for heating the water not panels im afraid. the tubes are great tho.

[ksher]

Contract is linked to the house? What will happen if you sell your house? Will the buyer need to continue the remaining contract with the supplier?

[pvr]

Contract is linked to the house? What will happen if you sell your house? Will the buyer need to continue the remaining contract with the supplier?

Yes - you mortgage your roof to the company for 25 years and you can NOT do anything to the roof without prior consent. You can not remove them for 25 years, even if the new buyer does not want them.

The buyer is buying a house with a contractual "issue".

[ksher]

Contract is linked to the house? What will happen if you sell your house? Will the buyer need to continue the remaining contract with the supplier?

Yes - you mortgage your roof to the company for 25 years and you can NOT do anything to the roof without prior consent. You can not remove them for 25 years, even if the new buyer does not want them.

The buyer is buying a house with a contractual "issue".

So technically you can only do it if the house has no mortgage outstanding. The bank will not let 3rd party to have ownership over the property.

[ksher]

Unless you're doing it to go green then there's no point really as It would take at least 7 years to break even.

Also, with all the electricity bills rising does it mean your ROI increases?

I heard that it will take at least 20 years to break even. If we are really going to be "Green", we should sell our Zed and buy a BMW i3 in 2013.

[pvr]

Not quite, the finance company has a "stake" in the house, i.e. the roof.

It is not much different from having two mortgages on a house from two different banks - as long as they are both aware.

No doubt you would have to get acknowledgement / approval from the mortgage company.

I would never entertain this as the elec savings is not worth it, the real savings are the tax free "feed in " tariff, hence why the finance companies are so keen to do it for you as it is a gain/gain for them , and not that great for you ...

[pvr]

Unless you're doing it to go green then there's no point really as It would take at least 7 years to break even.

Also, with all the electricity bills rising does it mean your ROI increases?

I heard that it will take at least 20 years to break even. If we are really going to be "Green", we should sell our Zed and buy a BMW i3 in 2013.

Is about 7 years. My return on investment is 4.5k per year tax free, investment is 31k. Also remember that the return is calculated using the government figures for sunlight levels in Doncaster so the South should get a higher return value.

[ksher]

British Gas gives the following figures (using 2.3 kWp solar PV system)

Average annual saving on your electricity bill
Generating your own electricity means you don't have to buy it from your supplier - you'd normally pay us 13.194p per kWh if we supplied your electricity1. The average customer will generate 1,785 kWh of electricity per year so if you generated 50% of your own electricity each year you'd save:
£118.76 (977.5 kWh x 12.15p)

Average annual earnings from the Feed-in Tariff
Current Government rates pay 43.3p for every kWh you generate and use. The average customer could generate 1,785 kWh of electricity per year, meaning a total income from electricity generated of:
£846.51 (1,955 kWh x 43.3p)

Average annual earnings from the National Grid
You'll also get an extra 3.1p for every kWh you generate but don't use which is fed into the National Grid. So for example, if you use 50% of the 1,785 kWh you generate, you can sell 50% (892.5 kWh) to the National Grid for an additional income of:
£30.30 (977.5 kWh x 3.1p)

Total annual earnings and savings:
£995.57 (£118.76 + £846.51 + £30.30)

25 year earnings and savings:
25 x £995.57 = £24,889.25

British Gas's cheapest system starts from £10k. It will still take 10 years to break even.