-82°Expired

# Tesco solar panels at fair prices (from £6999) - double Clubcard Points offer

Found 24th Aug 2010
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*
* 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.

### Groups

not cost effective at all, i pay roughly £55 a month for electricity via npower, that's £660 / year, so to get my money back, assuming this thing would power all my electricity in my home it would take nearly eleven years after which it would be of any benefit. And as i doubt it would power my home completely, I would still be dependent on the national grid, making this just a waste of money for some eco moral stand.... until solar power is a lot cheaper than this, it is pointless....

as for the grants offered by the government, no doubt they can and will be amended when the government wants to...... remember the grants for LPG?
Edited by: "surahman" 24th Aug 2010
surahman

not cost effective at all

And your evidence for that sweeping generalisation?
Newbold

And your evidence for that sweeping generalisation?

Refer to my full edited statement above
What is the warranty on these, say in five years if they get broken or simply die.
Jellybeans

What is the warranty on these, say in five years if they get broken or … What is the warranty on these, say in five years if they get broken or simply die.

as the old saying goes... tough! lol
surahman

Refer to my full edited statement above

I've just read your edited statement, but you're missing the entire point. You've not noticed that there are additional payments of 41.3p per unit of electricity generated - around 4 times what you'll be paying per unit.

You get that 41.3p regardless of how much you actually use yourself. That's why the scheme makes such good sense.

guardian.co.uk/mon…ent
Newbold

I've just read your edited statement, but you're missing the entire … I've just read your edited statement, but you're missing the entire point. You've not noticed that there are additional payments of 41.3p per unit of electricity generated - around 4 times what you'll be paying per unit.You get that 41.3p regardless of how much you actually use yourself. That's why the scheme makes such good sense.http://www.guardian.co.uk/money/2010/feb/06/solar-power-bright-investment

Everything aside, how many people can honestly come up with the up front payment of £6999 for the smallest panel?

And coincidently, that single panel may not be sufficient to power your home, so you would have to front £14999, how viable is that cost for the average family? and who will opt to go for it?
Jellybeans

What is the warranty on these, say in five years if they get broken or … What is the warranty on these, say in five years if they get broken or simply die.

You'd need to check out the warranties on the Tesco website. The point is, though, that solar panels have a very long life - normally well in excess of 25 years. The inverter required won't last that long - maybe 10-15 years, but the cost of a replacement is more than covered by the Feed in Tariff payments, particularly on a larger system.

Anyone interested needs to go into this thoroughly. It's a cracking investment for anyone planning to stay a few years in their present house if they have a suitable roof. The break-even point can be below 10 years, and after that there's the prospect of index-linked income at the rate of more than £1600 pa on a £14K outlay.
surahman

Everything aside, how many people can honestly come up with the up front … Everything aside, how many people can honestly come up with the up front payment of £6999 for the smallest panel? And coincidently, that single panel may not be sufficient to power your home, so you would have to front £14999, how viable is that cost for the average family? and who will opt to go for it?

As I said in the original post: "This is not by any means a scheme for everyone".
It probably isn't for you - but that doesn't mean it's no good for others. Read the Guardian article - it might help you to understand how it works.
I agree with the OP. I've been looking at one of these FiT systems. There is a diff company offering FREE solar systems with FREE maintainance. They keep the FiT credit though so you get 2.5kw of electricity to use (or sell on at 3p/unit) and they get the 41p/unit FiT. No upfront cost for the user, just savings/earnings from sold units.

Actually to pay £10k and get to keep the FiT yourself is a fantastic deal. This it pays for itself in under 9 years. The next 16 years make you ~£17k-£20k PROFIT.
How is that a bad deal?!
This is great,why -ve ?

If this was £6999 for a car that paid you to drive,this would be +++ve

voted hot
Thomablue

This is great,why -ve ?If this was £6999 for a car that paid you to … This is great,why -ve ?If this was £6999 for a car that paid you to drive,this would be +++ve voted hot

because it costs more than £1

People see the price and think i can't afford that so its cold, happens all the time
In 5 years time the solar technology will have moved on, so pointless looking for the long term returns on solar panels. Already solar paint being prepared by Leicester University which has better retention than Solar Panels, and its only a matter of time before that makes its way onto the market. Soon as it does, panels will be so last year... :-)
Not worth it... too many assumptions ... and what is not mentioned is that it needs a south facing roof, no shadow... it needs to be cleaned ... Well if you have some seagulls in the area you will have fun doing that.
Newbold

You'd need to check out the warranties on the Tesco website. The point … You'd need to check out the warranties on the Tesco website. The point is, though, that solar panels have a very long life - normally well in excess of 25 years.

Doesn't the output of photovoltaic cells decline throughout their lifetime.
surahman

Everything aside, how many people can honestly come up with the up front … Everything aside, how many people can honestly come up with the up front payment of £6999 for the smallest panel? And coincidently, that single panel may not be sufficient to power your home, so you would have to front £14999, how viable is that cost for the average family? and who will opt to go for it?

to be fair, you got owned
I think what many of you are forgetting when looking at an offer like this is the time value of money. If I said to you that if you gave me £10,000 and I would give you back (say) £764 for 15 years you may think that you were winning on the deal but actually if I got a 5% return on the money, it would only cost me £8280 in today's monetary terms.

Therefore if we were looking at the £10k option and ou got the £764 per year, it would take you 21 years to earn your money back if you could borrow the money at 5% p.a. interest. At the £7k level and an earning of £382 per year it would take a staggering 50 years to earn back the money.

If you earned the subsidy plus the saving it would take 17 years to earn back your money with the £10k option and 32 years at the £7k level. As a previous poster said, government subsidies may change over that period and you may end up with just the saving on the electricity in which case we may be talking a huge payback time. If the cells degrade over time, this would be even worse.

This is definitely not a good money making scheme and should only be done if you care more about the environment than your return and have access to this sort of money without having to borrow it.

Cold from me
olderthanhelooks

I think what many of you are forgetting when looking at an offer like … I think what many of you are forgetting when looking at an offer like this is the time value of money. If I said to you that if you gave me £10,000 and I would give you back (say) £764 for 15 years you may think that you were winning on the deal but actually if I got a 5% return on the money, it would only cost me £8280 in today's monetary terms.Therefore if we were looking at the £10k option and ou got the £764 per year, it would take you 21 years to earn your money back if you could borrow the money at 5% p.a. interest. At the £7k level and an earning of £382 per year it would take a staggering 50 years to earn back the money.If you earned the subsidy plus the saving it would take 17 years to earn back your money with the £10k option and 32 years at the £7k level. As a previous poster said, government subsidies may change over that period and you may end up with just the saving on the electricity in which case we may be talking a huge payback time. If the cells degrade over time, this would be even worse.This is definitely not a good money making scheme and should only be done if you care more about the environment than your return and have access to this sort of money without having to borrow it.Cold from me

Cold if you like - but your figures are flawed I'm afraid. You've failed to take account of the fact that the Feed In Tariff payments at 41.3p per unit are guaranteed for 25 years and index-linked, so they go up with inflation. You've also missed the fact that the savings on your own electricity rise as prices rise.

The cells do degrade, but they're usually guaranteed to be 80% efficient after 25 years - pretty good, really!

Go through the figures again - it does actually make very good financial sense for a lot of people. That's why there are several companies offering free panels - they're not doing it for fun!
These are what? 5-15% efficient? Better to get the ones that heat your water. There is no transfer of energy between states and so are 100% efficient. Not only that, they are little more than black water tubes in a mini greenhouse with a temperature operatured isolation valve and a dual coil immersion tank, so very cheap in parts to buy.
joylove

These are what? 5-15% efficient? Better to get the ones that heat your … These are what? 5-15% efficient? Better to get the ones that heat your water. There is no transfer of energy between states and so are 100% efficient. Not only that, they are little more than black water tubes in a mini greenhouse with a temperature operatured isolation valve and a dual coil immersion tank, so very cheap in parts to buy.

Cheap to buy - yes. As cost-effective as solar PV - certainly not.

You're missing the point that there are - as yet - no Feed In Tariff payments for solar thermal systems. They might make sense when a FIT scheme comes in, but at the moment, they make no financial sensese by comparison with solar PV.
Newbold

[Cheap to buy - yes. As cost-effective as solar PV - certainly not. … [Cheap to buy - yes. As cost-effective as solar PV - certainly not. You're missing the point that there are - as yet - no Feed In Tariff payments for solar thermal systems. They might make sense when a FIT scheme comes in, but at the moment, they make no financial sensese by comparison with solar PV.

They make excellent financial sense, cheap to buy, simple technology, efficient, cheap to repair and install, instant financial gratification from lower heating and hot water bills.

Solar electric is not in any way suitable for domestic applications. It is way to expensive to install, maintain and repair, there is not enough sun in this country, and you have to rely on cashback from someone to break even.

Solar electric power only makes sense on a commercial scale in the desert, where there is plenty of sun, technology companies beating down your door to get you the latest gear, and full time engineers to monitor and maintain it.
joylove

They make excellent financial sense, cheap to buy, simple technology, … They make excellent financial sense, cheap to buy, simple technology, efficient, cheap to repair and install, instant financial gratification from lower heating and hot water bills.Solar electric is not in any way suitable for domestic applications. It is way to expensive to install, maintain and repair, there is not enough sun in this country, and you have to rely on cashback from someone to break even.Solar electric power only makes sense on a commercial scale in the desert, where there is plenty of sun, technology companies beating down your door to get you the latest gear, and full time engineers to monitor and maintain it.

You're still missing the point entirely. There are large Feed In Tariff payments for solar electric which make the scheme extremely profitable for private householders. Far, far more profitable than solar thermal.

Why else do you think that companies like British Gas are prepared to fit systems free? They get the Feed In Tariff payments, which are very high, and the customer gets the electricty savings.

I'm araid you need to do your research before pontificating about something you don't understand the economics of.
Newbold

You're still missing the point entirely. There are large Feed In Tariff … You're still missing the point entirely. There are large Feed In Tariff payments for solar electric which make the scheme extremely profitable for private householders. Far, far more profitable than solar thermal.Why else do you think that companies like British Gas are prepared to fit systems free? They get the Feed In Tariff payments, which are very high, and the customer gets the electricty savings.I'm araid you need to do your research before pontificating about something you don't understand the economics of.

wELL SAID!
Cant understand how anyone can vote this cold. Its far better than sticking 14k into a savings account as the investment returns are brilliant.
csiman

Cant understand how anyone can vote this cold. Its far better than … Cant understand how anyone can vote this cold. Its far better than sticking 14k into a savings account as the investment returns are brilliant.

Too true, but the doubters haven't the intelligence to be able to understand how the finances work out.

If anyone can find me a £1600+ pa index-linked, government backed, income guaranteed for 25 years on a £14K investment, I'll be amazed. Because there isn't one.

If anyone can find me a £1600+ pa index-linked, government backed, income … If anyone can find me a £1600+ pa index-linked, government backed, income guaranteed for 25 years on a £14K investment, I'll be amazed. Because there isn't one.

Apologies for arriving late but I don't understand how this has been marked down either. The £15K capital outlay should not be compared to having money in a savings account though, as short of ripping the panels of the roof you can not access your capital.
neuralc

Apologies for arriving late but I don't understand how this has been … Apologies for arriving late but I don't understand how this has been marked down either. The £15K capital outlay should not be compared to having money in a savings account though, as short of ripping the panels of the roof you can not access your capital.

it can still be compared though. Many people have long term investments offering far lower returns on 15K than this does.
its very good investment but if you invest in 2010 and unfortunatley if you lost your job in futchur and if the vers came and you have to stay on dol (incom support benifit or aney min tested benifit ) then this incom you may count as an investment then any amovent you entaytal this will taken to account you may be versoff. can ane one have aney ansver for this please post?
sorry my english is not good please exusme for that