Faster payback for solar

08-03-2010

Research by consultants Faithful+Gould indicates that the government feed-in tariffs that come into effect on 1st April will reduce paybacks on solar photovoltaic (PV) panels from 50 years to 15 years. Thus, contractors who are qualified to carry out this work could see a major increase in business.

Feed-in tariffs are designed to reward households, businesses and communities who install low carbon electricity generating systems by enabling them to claim payments for the electricity they produce. Installing a PV roof to an average home costs around £12,000, with a lengthy payback that has deterred many from investing in photovoltaics.

Under the feed-in scheme, homeowners and businesses will be paid 41p per kWh (36.1p for new homes) for electricity from PV panels, while they will buy it back at approximately 10p per kWh, guaranteeing them a tax-free income of approximately £600 pa for 25 years, rising with inflation – with additional £200 per annum savings on electricity charges.

A similar scheme in Germany has proved very successful and led to one of the largest PV markets in the world.