On the 1st of April 2015, the Feed in Tariff rate for solar panels went to 13.39 p/kWh and we thought you might be wondering whether solar panels are still worth it at this tariff rate.
Here are some quick calculations for a sample 4kW solar panel installation
|Electricity Generated||3,400 kWh|
|First Year Income & Savings||£802.55|
We have assumed a load factor of 850kWh/kW/year for well sited solar PV, meaning that the system will generate 850kWh per year for every kW of peak capacity. In this case, a 4kW system generates 3,400kWh per year. Electricity use is assumed to be 50% on-site with 50% exported to the grid and electricity cost savings are calculated with an average price per unit of 15.6p.
In the above example, say you paid £7,000 including VAT for your solar panel installation. That would give a pay back time of just under 9 years and a very healthy return on your investment over the 20 years of the Feed in Tariff scheme. Your Feed in Tariff payments are both tax-free and index-linked and so compare very well with the alternatives open to most of us.
If you want to find out whether solar panels would be a worthwhile investment for your property, you need to talk to accredited solar panel installers. Installers can help you with an accurate assessment of how much electricity you should expect to generate from your roof, as well as assessing your energy usage and what your savings are likely to be. You’ll also need some quotes of course, in order to compare costs and returns. You should always contact 3 or more installers, not just to get the best price but to find the right installer for you and your property.