PRINCELY SUN & THE F-I-T

Let the power of the sun shrink your energy bills; A rise in domestic electricity generation has been stoked by a government pay-back plan plus offers of free solar panel installation.
Simon Read, 19 September 2010 (UK Independent)

"…Prince Charles – who has just completed two weeks of campaigning on green issues – was granted permission last month to install dozens of solar panels…The palace panels are expected to produce around 4,000 kilowatt hours of electricity a year – about the same as the electricity used by the average London household.

"Record numbers of householders are installing solar panels…[thanks to] a government scheme that pays you for generating your own energy…Under the [feed-in tariff] scheme, energy suppliers make regular payments to households and communities which generate their own electricity from renewable or low-carbon sources…[and] guarantees a minimum payment for all electricity generated…as well as a separate payment for any electricity exported to the national grid. The payments are in addition to any bill savings you make."

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"The feed-in tariffs give up to £758 a year for all the electricity generated from solar panels. On top of that, there is an additional £27 a year for electricity exported back to the grid and a £110 saving a year on electricity bills…[so] installing the panels could mean savings of almost £900 a year…[A]gainst that is the cost of installing the panels – around £12,500 for a typical home. But with the feed-in tariff set to be in force for up to 25 years, it means after around 12 years or so, the payments will have paid for the panels. So families could pocket the remaining income from the tariff plus savings, meaning they would be better off by around £12,500 after 25 years…

"…[Savings vary but] the cost benefits of creating your own energy are clear…[A] simple 1kWp (kilowatt peak) domestic system costing under £5,900 could pay you around £400 a year – or £10,000…Such a system will typically generate about 25 per cent of an average household's electricity requirements for free – and that can be maximised by using energy-guzzling appliances like washing machines and dryers during daylight hours when the input form the panels is at its highest."

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"If you're put off by the initial set up costs there is a cheap solution – pay nothing for the panels. There are several firms that will install the panels for free…[and] take all the cash from the government scheme. It means you would save the initial cost and benefit from the yearly savings on energy costs of £100-£200, but lose the £800 or so from the Government…

"…[Some experts say] people would be better off taking out a loan for the panels and then benefiting from the payments…[People should] understand their choices fully before signing a free-panels contract…[but] having a company cover all the costs, including the equipment, installation and maintenance of the panels, which could lead to savings for you of hundreds of pounds is an attractive option…"