If you've seen an advert for "free solar panels" you may have ignored it as just another marketing gimmick but apparently there are ways for consumers to get a domestic solar PV system installed at little or no cost. Due to the introduction of the UK feed in tariff of 2010, there are now significant monetary gains to be made from generating "green" electricity from Solar Photovoltaic Panels. Return on investments can sometimes be over 10% p.a. there are written quoted returns in the marketplace reaching as high as 27% p.a. (gross) for 50kw systems. Given that type of potential return, it's no wonder that a business with good cash reserves may look to take advantage of the Feed in Tariff. The simple premise for the "free solar panel" installation is that a commercial supplier offers to fit a Solar PV system on the consumers' roof for free on condition that the income from the feed in tariff is "signed over" to the installer, meaning that for the next 25 years (under the UK feed in tariff) the PV installer collects every penny from the electricity generated by the solar panels.
It's clearly beneficial to the installer as they receive guaranteed, double digit, index linked returns on what is probably one of the best low risk /hi return investments available in the UK right now, but what about the consumer, how do they benefit? In most cases the consumer will be entitled to fully use the electricity generated from the solar panels, and enjoy lower electricity bills and a certain freedom from the inevitable rise in cost of power. This reduction in expenses for the consumer could be the major deciding factor in choosing to have a "free solar panel" system installed at their home. However, what the consumer gets out of the deal in the longer term depends greatly on how the solar PV supplier has drafted their contract, and it's this agreement with the supplier that needs to be reviewed thoroughly prior to taking any permanent action. For example, in some instances, the supplier may make a fixed charge per unit of electricity used; this would normally be lower than the current utility company rates, but now it makes the "fee solar panels" deal less attractive. It is also important to check if there are any "hidden costs" involved, such as future servicing & maintenance, accidental damage to the panels, faulty hardware or workmanship etc. Consumers may also have to inform their building insurer, risking an increase in premiums to cover the solar PV system if the installer does not include some form of insurance cover on the panels. Statistically, it is understood that UK homeowners move house on average every 7 years, which means the moving homeowner will need to find a buyer who is happy to take over the existing contractual agreements that are in place for the solar panels. Does this caveat make your home more or less attractive to a potential buyer?
If, after weighing up all the pros & cons, you feel that this offer is for you, be aware that the companies offering "free solar Panels" are very choosy about which properties they will select to install the system, so you may or may not even be eligible. Due south facing roofs with large open areas, no shading and in excellent condition is what the Solar PV installer will look for, as this combination should provide the optimum return on investment for them. Switching to Solar Power can be considered one of the smarter things to do, and in terms of value for money, right now it's looks hard to match in terms of risk v reward, not to mention the overall benefit in reducing reliance on fossil fuels and lowering carbon emissions, however, if you are considering "free solar panels" take your time to review all the information to hand before acting.
It's clearly beneficial to the installer as they receive guaranteed, double digit, index linked returns on what is probably one of the best low risk /hi return investments available in the UK right now, but what about the consumer, how do they benefit? In most cases the consumer will be entitled to fully use the electricity generated from the solar panels, and enjoy lower electricity bills and a certain freedom from the inevitable rise in cost of power. This reduction in expenses for the consumer could be the major deciding factor in choosing to have a "free solar panel" system installed at their home. However, what the consumer gets out of the deal in the longer term depends greatly on how the solar PV supplier has drafted their contract, and it's this agreement with the supplier that needs to be reviewed thoroughly prior to taking any permanent action. For example, in some instances, the supplier may make a fixed charge per unit of electricity used; this would normally be lower than the current utility company rates, but now it makes the "fee solar panels" deal less attractive. It is also important to check if there are any "hidden costs" involved, such as future servicing & maintenance, accidental damage to the panels, faulty hardware or workmanship etc. Consumers may also have to inform their building insurer, risking an increase in premiums to cover the solar PV system if the installer does not include some form of insurance cover on the panels. Statistically, it is understood that UK homeowners move house on average every 7 years, which means the moving homeowner will need to find a buyer who is happy to take over the existing contractual agreements that are in place for the solar panels. Does this caveat make your home more or less attractive to a potential buyer?
If, after weighing up all the pros & cons, you feel that this offer is for you, be aware that the companies offering "free solar Panels" are very choosy about which properties they will select to install the system, so you may or may not even be eligible. Due south facing roofs with large open areas, no shading and in excellent condition is what the Solar PV installer will look for, as this combination should provide the optimum return on investment for them. Switching to Solar Power can be considered one of the smarter things to do, and in terms of value for money, right now it's looks hard to match in terms of risk v reward, not to mention the overall benefit in reducing reliance on fossil fuels and lowering carbon emissions, however, if you are considering "free solar panels" take your time to review all the information to hand before acting.
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