Solar panels are commonly sold not only to save money, but also to make you money. This is because investing in solar will provide free electricity and pay you an index linked government grant for 20 years.
What will affect your solar PV investment?
Many different factors will affect investing in solar, but below are the key factors.
* Electricity prices: If electricity prices increase, the greater the savings will be. It is forecast by government that electricity prices will rise at a rate of 2.6% a year until 2030. Generation and export tariffs will rise with inflation each year. Be careful when suppliers give you projections, as unscrupulous suppliers will use inflation rates as high as 10% to calculate rates. Bear in mind that the target rate of inflation is only 2% so this is a far more realistic figure to use.
* Cost of solar panels: The lower the price of your solar panels the quicker your investment will be repaid by the grants and savings. Use an MCS accredited supplier with the best price and lots of case studies.
* The rate of interest: Always factor into your calculations how much interest your money would have earnt you in the bank. With current deposit interest rates at record lows, investing in solar should be a better return.
How to make the most of investing in solar
It’s really important to invest your profits from your solar panels in a high interest account/Isa or in other renewables such as Biomass heating for your home. Biomass heating benefits from the government grants that will provide you further profit.
Paying for your solar panels
In order to get the best return from investing in solar if you can, it is best to pay from your own capital. Otherwise be careful to factor in the interest rate for any monies borrowed to make sure
that you have a return. Some interest rates can mean you are not making a profit on investing in solar. Free solar panel schemes are also an option, however, these schemes will only give you the benefit of energy savings, as the FIT payments are used by your solar panel supplier to repay the investment and receive profit.
Do solar panels affect the value of my home?
Property prices are not currently reflecting increases or decreases in prices due to the installation of solar panels. However, it is important to remember that panels become less efficient over time, and may need replacing after 25 years or inverters replaced. Conversely, who would not be pleased to have lower energy bills.
To find out more about what we can offer you, visit our http://www.environmentalenergies.co.uk/solar-panels>solar page, contact http://www.environmentalenergies.co.uk/get-in-touch>Environmental Energies online or give us a call on:01858 525 407.