Photovoltaic
Since April 2010 the government has announced the new “Feed-In-Tariffs” which means you will get a guaranteed payment of 41.3p per Kwh for any electric you produce from the solar panels guarenteed for the next 25 years whether you use it yourself or not! That’s right you can use all the electric yourself and still get paid to generate electric. What this means in the real world is if you in invest in the region of £7700 into a solar system for your home, this will buy a 1.4Kwp system that will produce approximately 1200 Kwh per year (based on a southerly facing roof), times this by 41.3p and that gives you a yearly income tax free of £495.60 indexed linked, plus it will save you buying 1200kwh from the electric supplier saving you another £168.00 (based on you buying at 14p per unit) not only that but in addition the utility company will assume you export 50% of your generation which will give you another £18 based on a export rate of 3p per unit.
Total savings and payments per year is £681.60.Solar system is £7700/£681.60 which makes payback for the system in year 11, and your left with 14 years of £681.60, which is £9542.40 tax free and this will rise over the years because its indexed linked.The above is only a realistic example based on the governments SAP calculations, .I often hear “I wont be in this house long enough to benefit”, perhaps you wont be there long enough to benefit directly, but indirectly Solar systems are very desirable and will add value to your property.

