Tue, 6 Sep 2011 22:46:14 GMT
If you install a solar photovoltaic system then you get a guaranteed income from the feed-in tariff. This is a tax free payment to the owner of the solar PV system that is guaranteed for 25 years. This incentive was introduced by the government to encourage home owners to invest in solar. So if you invested £14,000 in a 3.96kWp system today you would earn a tax free income of £66,000 over a 25 year period (based on an RPI of 4.5%).
These high levels of cash incentives were introduced to kick start solar in the UK. The idea was to start encouraging people to buy solar by making it too good an offer not to miss. This has lead to the cost of solar falling quite dramatically over the last year or so making solar cheaper than it was than last year. The government incentives have also encouraged a lot of new companies into the solar PV market to supply installations which has increased competition and also helped bring down prices.
The generous payments to people who invest in solar have also created a secondary market for free solar panels. Companies have started offering free solar to home owners in order to be able to claim the lucrative feed-in tariff payments for themselves. The free solar installer makes the initial investment and gets the government payments and the home owner gets the free electricity. It has worked out as a popular win-win deal for thousands of homeowners and dozens of installers who have been willing to make the investment.
The generous deal currently on offer is not going to last forever. At the end of March 2012 the feed-in tariff rates are being reduced to a lower rate for new applicants after this date. This means that if you are thinking of investing in solar you need to do it before the deadline otherwise you will miss out on the current high payout rates. It may also mean that free solar may no longer be on offer, there are already installers such as Solar PV Install Ltd who have already stated that they plan to stop offering free solar panels by March 2012. If you are thinking of getting free solar you should also get your interest registered as no-one yet knows if free solar will be available after that date.
Over the next 6 months it is going to be the best time to buy a solar PV system. The government feed-in tariff rates are never going to be this high again as they are now. The cost of solar is at its lowest in the UK as it has ever been. As there are a much greater number of companies after your business you have an even greater ability to haggle and get an even better deal. If you get several quotes you have some leverage to reduce the prices even further. Several installers are now more willing to price match as well. One last thing in your favour is the weather. Winter is typically a slow period for installers so they are not as busy and more eager to get new business, you can use this to secure a better deal for yourself.
Apply for free solar panels with our 1 minute application form. Apply Now.
Grants & Schemes
For every kWp of solar panels you install you could be earning up to £500 a year. That means a 3kWp system could earn you up to £1,500 a year for 25 years.
Ways To Save
Free Solar Panel Companies Listed
By getting quotes customers on average save 40% on a solar. Apply for free no obligation quotes if you are looking to invest in solar. Apply Now.
Ask A Question