This government led scheme is a very clear winner if you happen to have an area of south, south-east or south-west facing roof. It's probably going to earn you a better rate of return than most other investments, though that will depend how long you're planning to stay put. Don't do it if you plan to move on!
This is not by any means a scheme for everyone. It's a fantastic investment for some, but a loser for others. Do your research before you jump!
Tesco Solar Electricity Systems
Tesco have in the last few days revised their offering so that all their systems now attract the maximum rate of Feed In Tariff payments.
Solar electricity systems use free renewable energy from the sun and convert this into electricity, which can then be used in the home and the excess exported to the national grid.
* Free electricity from converted solar energy
* Earn £764 in tax free cashback, from year 1*
* Save £114 in electricity bills, from year 1*
* Earn 6-8% return on your investment (ROI)
* Enjoy tax free profit of £19,183 after 25 years*
* Generate 40% of your electricity needs*
* Reduce your CO2 emissions
* Improve your home’s Energy Performance Certificate
* PLUS double Green Clubcard points!
Cashback Elec sav Tax-free
Panels (kWp) Price Year 1 Year 1 25 yr profit
18 panel (3.96) £14,499 £1,390 £215 £40,029
18 panel (3.2) £12,999 £1,146 £171 £30,773
12 panel (2.1) £9,999 £764 £114 £19,183
8 panel (1.4) £7,999 £509 £76 £11,455
6 panel (1.0) £6,999 £382 £57 £7,592
Pricing Example Table Explanation:
These figures are for guidlines only and should not be relied upon:
1. System Size (kWp) = The number of panels (modules) multiplied by the size of the modules.
2. Price = Standardised cost for on-roof installations. If preferred please call for prices relating to in-roof installations.
3. Tax Free Cash Back (Year 1) = Total income through the Feed-in-Tariff (Generation Tariff + Export Tariff), following year 1 of install.The export tariff is deemed at 50% being exported.
4. Savings on Electricity Bill (Year 1) = Savings assume half of the electricity produced by the system is used in the home. Savings on electricity bill due to reduced imported electricity following solar electricity system install, as of year 1. Savings will increase over the systems lifetime due to domestic electricity price rises.
5. Tax Free Profit (After 25 Years) = The sum of total tax free cash back plus savings on electricity bill after 25 years, taking into consideration inflation rise of 2.4%, solar electricity system decline in efficiency (losses each year of 0.5%) and electricity price rises of 5% per annum. Profit is effective following the payback period for the system´s initial cost.
* Savings assume half of the electricity produced by the system is used in the home. Energy output is assumed at UK average of 850 kWh for every 1 kWp installed. Domestic electricity for this example is set at 12.76 p/kWh. Location and angle of the system will affect the efficiency of the system. Under the rules no export meter is required, so customers are deemed to export 50% of electricity they generate in our examples. RPI is set at 2.4% and raises the tariff rates only. You may have to pay energy bills in winter, but benefit from large cash backs in the summer. These figures are for guidelines only and should not be relied upon
FREE ELECTRICITY means energy converted from sunlight and used by the homeowner as part of their overall yearly energy consumption. Figures based on a solar electricity system meeting a minimum 40% of your electricity requirements. You will need to pay for additional electricity to meet your needs.
Basically, these systems will pay for themselves inside a few years, thanks to the generous Feed In Tariff payments of 41.3p per unit of electricity generated - index-linked for 25 years. There's no simple way to calculate the exact payback period, but if you're not having to borrow the money it could be as short a period as 10 years, with more or less clear profit after that.
Double Clubcard Points at the moment, too.
Let the arguments commence.