The sun is not setting on the solar panels boom

Choosing whether or not to put solar panels on your roof is still a ‘no-brainer’ despite the Government’s latest cuts in subsidies, says a Midland energy expert.

Ron Fox, of Noreus Ltd, points out that householders will still get returns of up to 9.2 per cent on their investment and that the average investment for a family home will pay for itself in ten years.

This despite the Department of Energy and Climate Change slashing its generous subsidies by nearly two thirds in nine months from 43p per kilowatt hour for 25 years to only 16p per kilowatt hour for 20 years from last Wednesday (August 1).

In that time the number of solar panel installations has fallen by more than a half from 27,000 a month to only 12,000.

The Solar Trade Association (STA) calculates that a family installing a 4kWp system this month costing £8,000, using 50 per cent of their power in the home and exporting 50 per cent to the National Grid, will find that it will have paid for itself by August 2022.

This is based on Government projections in electricity cost and established national average yields from solar power.

However, Paul Barwell, Chief Executive Officer of STA, said: “These figures are on the conservative side. At the moment electricity prices are rising much higher the Government predictions, and if customers use more than 50 per cent of the electricity generated by their solar system this will also see further benefit.”

Ron said the main benefit was the Feed-in Tariff or FiT payment, which is the money the Government pays people for generating electricity every year from the scheme, as it is index-linked to retail prices inflation and guaranteed for 25 years.

At present the FiT is paid at two tariffs. The Generation Tariff is at 16p per Kilowatt Hour for all electricity generated for a 4 kWp system and is topped up with the Export Tariff, which adds an extra 3.1p per KWh for electricity exported to the Grid.

“Nobody knows what electricity prices will be in future,” said Ron, “but we do now they have gone up substantially over the past few years. This trend may well continue as the UK becomes more reliant on importing its energy in an increasingly competitive world.

“Solar power gives people the opportunity to take control of their electricity bills and helps us as a nation to move away from damaging fossil fuel dependence.”

He added: “Compared to the banks and other investments, where else can you get a return of up to 9.2 cent on your money? Deciding whether or not to invest in solar panels is a no-brainer.”

For more details about energy-saving call Ron on 01782 756995 or request a call back.