Author Topic: Is domestic PV Solar Energy cost effective?  (Read 4627 times)

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Philofacts

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Is domestic PV Solar Energy cost effective?
« on: July 16, 2011, 01:21:44 pm »
The Energy Saving Trust estimate that fitting PV solar panels will save the average household £120 a year in electricity bills. This is based on 50% of the power generated being used by the householder. As there is no way of storing the power generated by the solar panels, the energy will be generated during the day when most homes are unoccupied. In reality, this means that savings would be around £70 or less a year.

For anyone that can afford to pay for their own panels to be fitted, this will not matter as they will be selling all the unused energy generated from their solar panels to the national grid. This will earn around £1000 per year from the feed-in tariff scheme, guaranteed to last 25 years, with payments rising with inflation.

Those who sign up to one of the 2,000 'rent a roof' schemes that install the panels for free (normal cost is around £14,000) they may save the installation cost, but gain no benefit at all from selling surplus energy to the grid. So in return for an average saving of just £5 per month in electricity costs, those that 'rent a roof' will have equipment owned by someone else on their roof, which could reduce the resale value of their home and a complicated the sale.
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FirstTimeBuyerGuru

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Re: Is domestic PV Solar Energy cost effective?
« Reply #1 on: July 21, 2011, 06:21:54 pm »
Hi Philofacts

I must say, it does annoy me slightly when companies mask their desire to make money with the primary concern of saving the planet! Whilst i'm all for anything that can be done in an individual residence to save the planet, I do wish the true costs were given. Have you any idea what the total cost to purchase a solar roof panel including installation)?


The Prophet

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Re: Is domestic PV Solar Energy cost effective?
« Reply #2 on: July 23, 2011, 08:31:18 am »
I do wish the true costs were given. Have you any idea what the total cost to purchase a solar roof panel including installation)?

It depends on the output.  The better the output the more you can sell back to the grid and the more income you get from the feed in tarriffs.
The British Gas Standard 2.3KWp Solar PV system costs £9,999 installed, and you get an average of £996 a year from savings in electricity bills and income from the feed in tariffs.

The output and cost of this is about average.

Philofacts

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Why rent a roof solar panels are a bad idea
« Reply #3 on: April 12, 2012, 09:40:11 am »
Having solar panels installed and paid for by a supplier under a 'rent a roof' scheme does not make much sense.
You may get "free" electricity during the day when the panels are generating but this may only save between £70 and £150 off your annual bills.

For this you may have to pay higher insurance premiums, and could have trouble selling your house when it is time to move on.

Furthermore, whilst your existing mortgage provider may have been willing to approve the deal and Solar Lease, it can be nigh on impossible to re mortgage, making your home impossible to sell without buying out of the scheme for around £15,000.
It makes you wonder whether solar rent a roof firms know this and intend to profit further by selling their panels to desperate home owners wanting to move.
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The Prophet

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Re: Is domestic PV Solar Energy cost effective?
« Reply #4 on: April 13, 2012, 08:30:22 am »
It was always going to make selling more difficult but not being able to re mortgage is a real problem.