DECC Changes Allows For Profit
Investment in solar PV still delivers twice the returns of an ISA
Golden opportunities still exist for homeowners to make a 6-9% return on investment and generate an income for 20 years by installing solar PV, despite changes to the Feed-In-Tariff (FIT) which are implemented today, according to Southern Solar. From August 1 the new rate for 4kW systems will be 16p/kWh, however with solar panel prices now more than 50% lower than in April 2010 when the FIT was first introduced, the latest tariffs are aimed at providing the same returns as originally set out by the scheme.
The new tariffs, which will now be paid over 20 years instead of 25 years, should give a return on investment of over 6% for most typical, well-sited installations, and up to 9% for the larger bands. Investor income will also be boosted by the increase in the export tariff, which will increase to 4.5p from 3.1p.
Howard Johns, ex-Chairman of Solar Trade Association and MD of Southern Solar, said: "Installing solar PV systems is an excellent investment opportunity in the current economy; a return of between 6-8% is well above rates offered on ISAs, bonds and savings account, and solar also offers homeowners the opportunity of energy independence and reduced electricity bills, as well as lowering their carbon emissions.
"We're trying our hardest to show homeowners what a fantastic investment it is, however there has been a lot of confusion around the subject due to retrospective cuts, court hearings and energy rating requirements," he added.
"With the cost of electricity rising at around 7% above inflation, homeowners are investing in solar to ensure their bills don't escalate in the future. There is a real opportunity to benefit hugely from solar power in coming years," said Howard Johns, MD of Southern Solar, the only solar company ever to be recommended by Which? magazine.
He added: "The shrewd investor is looking for a healthy return whilst investing in their future and the future of generations to come. We need greater energy security in the UK as pressure is put on our resources and we need a guarantee that we can keep the lights on in the longer term."
