Possible Free electricity for life (£15k install cost) solar energy @ Tesco - HotUKDeals
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Possible Free electricity for life (£15k install cost) solar energy @ Tesco £15,000.00

LongPockets Avatar
5y, 9m agoPosted 5 years, 9 months ago
OK, it's complicated, but basically we are getting our electricity free from now on.

The 15k was the cost to install solar panels (photovoltaic) on the roof. These are expected to generate much less electricity than we will use, but the electricity company pays us four times as much for what we generate than they charge us for what we take from the grid, even when we use it ourselves (and of course we are taking less from the grid), and they will continue to pay for the next 25 years (we have a contract). We pay our normal electricity bill as usual, but email or phone in a meter reading from the generation meter once a quarter and get paid for what we generated directly into our bank account. The estimated yearly output of the PV panels (we haven't had them a year yet) will pay us back for all the money spent on electricity bills.

Read that again- it's hard to get ones head around it. It seems to good to be true, but this is a government devised and regulated scheme to promote the use of domestic scale renewable energy. They have distorted the market in your favour, if you have the resources to take advantage.

You need a big enough roof, facing mostly South, and the money for the installation. We got ours from Tesco Direct (double clubcard points!). If you have £15,000 languishing in a bank account earning almost no interest, then it makes sense to put it to work. If you would have to borrow the money, then probably not. Some people spend this on a new car, which will never pay you back anything.

http://www.tescohomeefficiency.com/renewable-energy/
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LongPockets Avatar
5y, 9m agoPosted 5 years, 9 months ago
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#1
Should this be "Free electricity for as long as the government's feed-in tariff subsidy lasts"?
#2
There are companys installing these for free, gov based grants.
I live in a council house so they couldn't install the panels.
#3
Lupeto
Should this be "Free electricity for as long as the government's feed-in tariff subsidy lasts"?


No, the tariff will go up in line with inflation, but as I say, we have a 25 year contract with the electricity company. The initial tariff is likely to be reduced in 2013, but this will not effect existing contracts.
1 Like #4
Hmmm, 25 years life expectancy, south facing roof and £15k, probably all a problem for me........

Plus my council won't even allow an outside TV aerial, don't know what they'd think about these....

Slightly chilly for me..........
#5
Ties in nicely with this lol

just need to scrape together all those clubcard points!
#6
harvez
There are companys installing these for free, gov based grants.
I live in a council house so they couldn't install the panels.


Yes, but I believe the installing company takes the generation money (or most of it, don't know the details). The householder just gets free electricity while the panels are producing.
#7
you could pay the next 35 years of electricity bills with 15k lol!
1 Like #8
What happens if you move from that house within the next 25 years?
#9
I am unable to edit the link, so here it is:

http://www.tescohomeefficiency.com/renewable-energy/
[mod] 1 Like #10
link and title fixed ;)
1 Like #11
"These are expected to generate much less electricity than we will use"

Houston, we have a problem! ;)
#12
What is the situation with regards to maintenance costs?
#13
Borat
you could pay the next 35 years of electricity bills with 15k lol!


No, I couldn't. We pay over a thousand pounds a year, and we have a very good capped deal (10 pence a unit).

Jules1212
What happens if you move from that house within the next 25 years?


The contract is transferable, you get the house buyer to pay for the panels like he would for carpets.
Baldricky
"These are expected to generate much less electricity than we will use"

Houston, we have a problem! ;)


Not a problem- read it again. The electricity company pays FOUR TIMES as much for what we generate than they charge us, so we only have to generate a quarter of what we use to come out ahead.
#14
Borat
you could pay the next 35 years of electricity bills with 15k lol!


Yep, easily for me.

Plus you don't have the hassle, the problems when selling the house, the problems when they're not working anymore, who pays for maintanence for example? The risk that they change the value, I can't see them still paying the same "value" in 25 years time!!
#15
He means they'll need to generate MORE than you use!!!
#16
Jules1212
What happens if you move from that house within the next 25 years?


they said on the radio the other day that some banks have already started to refuse mortgages on properties that have a 3rd party contract (where the 3rd party have paid to put the the solar panels on the roof) - anyone come across this - ?
#17
Your problem will come when you come to sell your house or re-mortgage your property - part of your roof space is now let out on a 25 year contract.
1 Like #18
whatsThePoint
If you had £15k sat in the bank why are you penny pinching on this site like the rest of us

thats why theres £15k in the bank !
#19
I seem to remember Germany did something similar before, and it was considered to be a waste of time, ie taxpayers money subsidising it.

Worse in this country as they'll produce less elec as less light.
#20
Baldricky
What is the situation with regards to maintenance costs?


Haven't had them long enough to say. There isn't any regular maintenance, as long as the panels aren't damaged or the inverter doesn't go wrong. The panels lose a few percent of efficiency per year, so don't last forever. The installation came with ten years insurance included.
#21
LongPockets
Baldricky
What is the situation with regards to maintenance costs?


Haven't had them long enough to say. There isn't any regular maintenance, as long as the panels aren't damaged or the inverter doesn't go wrong. The panels lose a few percent of efficiency per year, so don't last forever. The installation came with ten years insurance included.


So in 10 years time when they're all dirty and not producing much elec you won't be getting paid virtually anything as it'll just about produce what you need.
#22
Remember that when you come to sell the people who buy your house will pay less for it, would you want to buy and house and be forced into a contract with the panels too? Or would you choose elsewhere?

Also as stated could cause problems with the mortgage, meaning even less people would consider your house.

Plus, when they're no longer working, ie 25 years, then you'd have to get them taken down otherwise your house would be de-valued still.

Add in these costs and I can't imagine that you'd make any profit!


Does it also tie you to one energy company/tariff? And where you say they pay 4 times what they charge, are you talking standard rates or 4 times a "special" rate??

Edited By: Benjimoron on Feb 17, 2011 09:47
1 Like #23
Benjimoron
I seem to remember Germany did something similar before, and it was considered to be a waste of time, ie taxpayers money subsidising it.

Worse in this country as they'll produce less elec as less light.


Oh, absolutely, it is a waste of the TAXPAYER's money. But also the electricity companies are charging most users more for electricity to pay over the odds for renewable electricity- they have to get 20% of their supply from renewables. So, get on the right side of the equation- make the taxpayer and other electricity users waste money paying YOU.

I hope no one thought I was concerned about the environment.
#24
Benjimoron
Remember that when you come to sell the people who buy your house will pay less for it, would you want to buy and house and be forced into a contract with the panels too? Or would you choose elsewhere?

Also as stated could cause problems with the mortgage, meaning even less people would consider your house.

Plus, when they're no longer working, ie 25 years, then you'd have to get them taken down otherwise your house would be de-valued still.

Add in these costs and I can't imagine that you'd make any profit!


The panels might well be regarded as a plus by a buyer, who would take over the contract and get the benefits. I think the mortgage problem is only when the panels are owned by a third party, not the householder.
#25
LongPockets
Benjimoron
I seem to remember Germany did something similar before, and it was considered to be a waste of time, ie taxpayers money subsidising it.

Worse in this country as they'll produce less elec as less light.


Oh, absolutely, it is a waste of the TAXPAYER's money. But also the electricity companies are charging most users more for electricity to pay over the odds for renewable electricity- they have to get 20% of their supply from renewables. So, get on the right side of the equation- make the taxpayer and other electricity users waste money paying YOU.

I hope no one thought I was concerned about the environment.


Is there a guarentee in the contract as to the value that they'll pay you? I would imagine that in 20 years time they ain't gonna be paying the same "value" as they are today.
#26
LongPockets
Benjimoron
Remember that when you come to sell the people who buy your house will pay less for it, would you want to buy and house and be forced into a contract with the panels too? Or would you choose elsewhere?

Also as stated could cause problems with the mortgage, meaning even less people would consider your house.

Plus, when they're no longer working, ie 25 years, then you'd have to get them taken down otherwise your house would be de-valued still.

Add in these costs and I can't imagine that you'd make any profit!


The panels might well be regarded as a plus by a buyer, who would take over the contract and get the benefits. I think the mortgage problem is only when the panels are owned by a third party, not the householder.


Well, hopefully you'll find a buyer one day that wants the panels, but, you're limiting yourself to people who want the panels, meaning there's less demand for your house, meaning the value goes down. Simples!
banned 1 Like #27
We have installed two air source heat pumps in our new build and are hoping to start claiming the renewable heat incentive , this should pay us about a £1000 per unit per year, this will help to justify the extra cost we incurred ( £20,000 for whole heating and plumbing , oil would have been £10,000) , we should break even after 5 years, after that its money in our bank .
#28
I would like this, but I kinda believe the 15k outlay now, in a few years would reduce quite a bit (like all technology)
#29
LongPockets
Baldricky
What is the situation with regards to maintenance costs?


Haven't had them long enough to say. There isn't any regular maintenance, as long as the panels aren't damaged or the inverter doesn't go wrong. The panels lose a few percent of efficiency per year, so don't last forever. The installation came with ten years insurance included.


Is there an excess etc on the insurance?

Does this tie you to en energy company/tariff? If so then that's gonna cost you several hundred per year anyway!
#30
Benjimoron

Does it also tie you to one energy company/tariff? And where you say they pay 4 times what they charge, are you talking standard rates or 4 times a "special" rate??


We signed up for the "feed in tariff" with the same company that we get our electricity from, but I think you can choose any company, and I don't think this stops you changing your supplier. The whole deal is separate. The tariff (what they pay you) is fixed based on a number of factors, not related to what you are currently (see what I did there?) paying for electricity. For our installation it is 41 pence per unit generated, with an additional 3 pence for half the units, which are deemed to have been pumped back into the grid (they don't bother to meter this in domestic installations). This happens to be more than four times what we pay per unit.
#31
so let me get this right....

15grand outlay
my monthly elec bill= £40
annual elec cost= £500 to round up


freaking hell itll take 30years to get my original outlay back

i be dead by then

no thanks
#32
I wonder about people sometimes, it is a perfectly sensible alert for those who it suits and gives us someones experience of the scheme so far and thanks for that , he/she is only trying to help.
1 Like #33
why is everybody so against this?
#34
Nice moderation... wont bother to try and explain what solar PV is all about next time. Seriously....

J
#35
mumbojumbo


The OP has already stated £15k outlay and not the £12k you quote.
Some hard figures to back up your claims, please.


My installation cost just under £15k. This was the maximum size for a domestic installation. I have a big enough roof for that. The other poster apparently has a smaller roof (and a brother in the business- maybe he got a discount). You keep asking for "hard figures" despite having been given a lot of them already. The figures that would apply to you will be different, because of the size of the installation if for no other reason. We had a surveyor for the PV installers spend half a day here working out what the costs would be. No one can just hand you a complete costing without much more information than you have provided.

There are sites that you can go to to find out about the tariffs, which depend on many variables including the size of the installation and whether it is a commercial or domestic one, and whether it is new build or added to existing building. If you are seriously interested, do the research. You can't cast doubt on other's experiences by simply demanding impossible costings without providing anything to base them on.

The government has designed this scheme to provide a return on investment of 5% to 8%. There is no way to know where your particular example would come on that scale, without doing ALL of the math.
#36
sedd33
so let me get this right....

15grand outlay
my monthly elec bill= £40
annual elec cost= £500 to round up


freaking hell itll take 30years to get my original outlay back

i be dead by then

no thanks


You've not taken into account that they'll be paying you for the elec you produce, or the maintanence costs, or the fact that the government may change their mind about how much they pay.
#37
I thought that you were paid only on the excess electricity you produce .Are you really sure you have worked this out correctly ?.
#38
Anyone remember ostrich farm investments of about 15 years ago?
#39
Okay - here's the Maths:

Tesco themselves say that you can "earn" up to £800 per year using this system. It will take you (at least) 14 years to regain you initial outlay not including inflation.

If you invested the cost of the panels into a savings account at 3.2% and re-invested the interest, you would, at the end of 15 years, have 24059.51. (And interest rates are almost certain to rise). You would also have had access to your money at any point during this time - it would not have been locked in to the panels.

With the panels, you have paid them off after 15 years and therefore the final 10 years of the contract are "profit" - approx an additional £8 - £10,000.

But your invetsed £15000 would by this time have earned £17967.32 over the 25 years AND you still have the initial investment. AND interest rates are likely to rise.

Simples.
#40
tonyg1962
I thought that you were paid only on the excess electricity you produce .Are you really sure you have worked this out correctly ?.


You seem to imagine that I have paid out £15,000 without checking it out.

You are not paid only for the excess electricity. You are paid for every watt you produce, whether or not you use it. Then you are paid EXTRA for the excess electricity you export, except that they don't bother to measure this, they just pay extra for half of what you produce, figuring that that is about right.

In my installation, I get paid 41.3 pence for every "unit" produced. Then I am paid an extra 3 pence for each unit deemed to be exported to the grid (half of all the units produced). A unit is a kilowatt hour, a thousand watts for an hour, or a hundred watts for ten hours. When the Sun was fully out the other day the panels were producing 3.6 Kilowatts. The design maximum is just under 4 KW.

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