Posted by British Gas in Solar
Homeowners know investing in their homes will often see returns but with tighter budgets and lower performing financial products, homeowners are looking for ways to see returns in the short term.
New calculations by the Solar Trade Association show that investing in solar will continue to be attractive for homeowners, despite the recent reductions in the Feed in Tariff (FiT) when the FiT rate fell to 16p and the FIT lifetime will reduce to 20 years. However, as a positive reflection of the value of home generated electricity the price paid for electricity exported to the grid will increase by nearly 1/3 to 4.5p.
We spoke to Paul Barwell, who is the Chief Executive of the Solar Trade Association. He highlighted the strength of financial support the Feed-in Tariff provides homeowners particularly when the average investor is finding it hard to find secure and strong returns.
Solar Trade Association CEO, Paul Barwell, said:
"Our figures show that solar is a no-brainer investment. Compared to the returns you can get these days in banks and many other investments, solar provides a very solid and attractive return.”
Investing in solar can also be seen as supporting ethical energy policy along with growing the industry providing jobs and training for many.
Investors in solar are also helping us to drive an exciting energy revolution, putting power in the hands of everyday people, while saving the planet."
As the cost of production continues to fall so does the price to the consumers. Recent analysis of returns of investment by British Gas shows that a 4kWp system could see a 12% IRR over 20 years. At a cost from £7,499 this is the largest system that qualifies for residential FiT.
For homes that have slightly smaller roofs, a 3kWp system (fitting on a normal 2 bed semi) you will be able to realise 9.3% IRR from a system costing from £6,899.
We caught up with Colin MacDonald, head of Microgeneration at British Gas who told us about the many gloomy headlines on solar power he had seen recently:
“The fact is the returns on offer are far better than most on offer from the high street banks. If you want a secure return on your investment not reliant on the ups and downs of the stock market you really should consider solar as the smart investment.”
There has been over a quarter of a million installations across the UK since the launch of the FIT in April 2010. The industry has blossomed to employ around 25,000 people and it is set to grow rapidly, despite the recession.
To find out if you home is suitable for solar panels go to www.britishgas.co.uk/solar
Or if you have any questions, why not tweet us @BritishGas, using the hashtag #BritishGasFiT.