The Department of Energy and Climate Change say that since 2010 there has been 300,000 solar installations on British homes, and as solar panels prices continue to fall, this figure is expected to rise.
The domestic solar panels now generate 846MW of renewable energy, as many homeowners have looked to make the most from the Government’s feed-in tariff incentive.
This Government-backed scheme ensures property owners receive a fixed income:
- At a rate of 21p/kWh, homeowners can receive £500 a year from the feed-in tariff
- On top of this, they’ll reduce their energy bills by up to £300 a year
- Excess electricity produced can then be sold to the National Grid
- This is all low maintenance and solar companies offer 20-year warranties
- Plus, it’s environmentally friendly electricity and will reduce your home’s carbon footprint
The UK’s solar installations in the last two years have covered a surface equivalent of 1,000 football pitches.
However, 50,000 of these solar panels have been installed under the ‘rent a roof’ scheme which provides free solar panels to eligible homes.
But these properties have missed out on the chance to earn a fixed income and see a fantastic return of investment because of cheaper solar panels prices.
Under these free schemes a company will install panels on your roof. But they will take the entire feed-in tariff. What’s more, it’s a 25-year contract and mortgage lenders are baulking at issuing loans for these properties.
Free solar schemes:
- Have 25-year contracts and it costs £1,000s to buy out
- Mortgages won’t be issued on these properties so you’ll find it hard to sell-up
- You won’t receive the feed-in tariff – so you’re flushing £500 a year down the toilet
These problems are only linked with the free solar schemes though and buying your own system, especially with the solar panel prices dropping, is well worthwhile.