Any electricity that you use that is generated by the solar PV panels will be free. Solar Sydney This will save the householder about 14p/kWh.* How much you save will depend on your pattern of usage of electricity. If your usage is mostly during the day when solar electricity is being generated, then your savings will be much greater than if you only tend to use electricity first thing in the morning and during the evenings. Even if you are out during the day, you will be able to maximize your savings by setting some of your appliances, such as your washing machine, to work whilst you are out.
You could save more than 50% on your electricity bills. This becomes more and more important as energy costs rise. British Gas have announced that their charges will increase by 7% from December 2010 and, in our opinion, this is a trend that is likely to increase over the coming years.
So all you have to do is enjoy the benefits. With the monitoring device that is provided you have instant access to precise information about the system’s performance, this will give you how much power is being generated at any point in time as well as cumulative totals for each day and over the year. You can also view charts that will tell you how the system is performing over periods of time. For many people this provides a real sense of involvement in doing their bit for the environment. Having the information easily to hand will probably encourage you to save even more.
This incentive by government provides outstanding returns on the investment that you make. It is a unique deal unlike any other kind of investment.
The return on your investment is guaranteed for 25 years.
The return on your investment is tax free.
The return on your investment is index-linked to Retail Price Index (RPI).
For most other kinds of investment you will pay tax on the income that you receive (either at 20% or 40% depending on your tax situation).
For most other kinds of investment with this level of return, there is likely to be a significant risk and you will receive a warning that the returns on investment can go down as well as up. A solar PV or solar Thermal investment will be protected from inflation because the returns are linked to the RPI.
It should be noted that it would be difficult to take your money out of this investment in the same way that you would be able to do with invested capital or shares. However, your investment is likely to increase the value of your property (probably by more than the cost of the installation), so your investment is not lost, you should get a return on the capital if you choose to move home.
You may have heard that grants or interest free loans from the Carbon Trust are available. With the introduction of the Feed in Tariff, these incentives were stopped / reduced. The only incentives still available are interest free Carbon Trust loans for the commercial sector and, even then, the loans are tied to the amount of carbon reduction that is achieved with the particular microgeneration technology. So, for businesses installing solar PV panels, the loans are likely to be about 10% of the installation cost.