Domestic Solar Power Investment
Below is some helpful information about the Domestic Solar Power Investment potential you could earn with one of our systems. If you still have questions please call our Domestic Solar Power experts today on 0800 988 3188.
At the beginning of 2010 the UK followed many other countries in Europe by introducing the "Feed In Tariff” scheme. This is a system where the energy companies must pay a fixed amount for each unit of energy generated by Solar PV, Wind Turbines and other micro generation technologies. Whether the energy is used by the owner or exported back to the grid, the payment is made simply for the act of generating it. The payment is guaranteed in UK law for 20 years.
If you install a qualifying solar power system in the UK, you will get paid for every kWh you generate regardless of whether you use it yourself or export it to other users. This is a generation tariff or feed in tariff (FIT). It will go up each year in line with inflation. If you use the electricity you have generated this means you do not have to buy it from the electricity company, meaning you will save around 11-15p per kWh at today’s prices (prices subject to change). Energy you generate but don't use yourself, i.e. you export it to the electricity company, will attract another payment to you of just under 5p per kWh. This payment is index linked to the RPI, meaning it will increase with inflation.
The legislation ensures that the return in FIT payments will represent an average of 14% per annum against the initial set up cost. Solar PV is a reliable, safe, investment vehicle that provides returns exceeding those of traditional low risk financial products such as savings accounts, ISA’s, Gilts, etc.
A solar photovoltaic system requires a minimum investment of around £5,000 for a domestic solar panel system and £10,000 for a small commercial system. This covers supply and installation of solar panels, inverter, isolators, cabling, relevant testing, certification and reporting to regularity bodies and your electricity company…a complete package!
Feed in Tariffs, your investment guarantee
The Department for Energy and Climate Change (DECC) announced in February 2010 how the long-awaited feed-in tariffs would be paid.
The important points are:
- The rate you are paid is guaranteed for 20 years, allowing long-term planning of your investment.
- Paid by electricity companies rather than the government
- Your investment should return approximately 14% per annum, based on feed-in-tariff payment and energy savings.
- The feed-in tariff is index linked to the Retail Price Index, meaning your investment return increases in line with inflation.
How long will it take before I make a profit?
The answer to this question will be different for every installation dependant on how close to ideal conditions the installation site is. If you request a formal quotation from us, we can give a better idea following site assessment.
However, an average system will pay for itself between 6 and 8 years based on FIT payments and energy savings. This estimate of return on investment is based in part on current energy prices.
Energy prices are not fixed and as they go up the repayment period will come down, which means actual repayment on your system could be significantly less. Following the repayment period and for the remainder of the 20 years you will be making a profit on the system. As a low risk, long-term investment vehicle solar PV is hard to beat.
Get your Solar Panels up and running
If you would like to know what your roof (or land) could be earning for you please contact us for a quotation.
Here at Geo Green Power we are experts in Solar Power from consultation, installation through to registration. We will help you pick the right Solar Power system for your property and support you every step of the way.
Call us on 0800 988 3188 or fill in our online enquiry form and we’ll get back to you.
We found your service efficient and enquiries polite and considerate. I would definitely recommend your services to anyone who is looking for solar, in fact we have another farm building which will be sorted after Christmas, and would think we will be contacting you again. Thank you once again.
I have been very pleased with the speedy and efficient service we have received. Everyone in the Geo Green Power team has been pleasant to deal with and all aspects of the installation were carried out in a timely and effective manner. Many thanks for making our lives easier!
Thank you for all your hard work. Everything was completed efficiently and professionally and I’m now saving and making cash thanks to my solar PV system. I like checking my meter just to see how much money I've made! Solar panels are a great investment and I’m recommending Geo Green Power to everyone I meet.