SOLAR BLOG

Sustainable housing and the climate are two hot topics affecting the UK today. Hoping to provide a solution to both issues, housebuilders are beginning to offer first time buyers and young families the chance to purchase solar photovoltaic (PV) systems with their new home.

Helped by Governmental policy decisions, new housing developments are being built across the country, to provide sustainable housing for thousands of people presently living in rented accommodation. With a number of these buyers being key workers, many incentives are already available.

Taking such a step however, developers hope to win the green hearts of young buyers as well as their bank balances. The offer is complimented by another Government sponsored plan too; the Feed in Tariff (FiT) incentive scheme. Aimed at encouraging families, community projects and small businesses to produce their own energy, it has been successful.

By buying solar panel installations alongside their new home purchase, it is projected that the homebuyers could benefit from a ten percent return against the cost of installation. For those staying in their homes for a decade or more, a significant year on year profit could be seen.

The scheme also opens up the capture of solar energy to existing homeowners too; who maybe concerned with their ever increasing energy bills and their own personal carbon footprint.

Whatever the reason, the project continues to win many subscribers. Demand for high quality solar panel installers should result whilst homeowners save money in a win-win situation.

Following the announcement by Energy Secretary Chris Huhne that there will be a comprehensive review of the Feed-in-Tariff (FiT) scheme, many environmentally conscious investors are wondering what the implications will be for them.

The announcement comes amid concerns that some large-scale solar farms, many operated by companies outside the UK, risked exploiting the scheme. Primarily designed to help communities, homeowners and small businesses generate their own electricity, this is one area that will come under review.

Whilst there will still be consideration given to eligible projects of over 50kW, fast tracked wherever possible, tariffs will be reduced. Many commentators have warned that it could damage the take up of smaller solar panel installations though, which have been encouraging since the scheme was announced in April 2010.

Below 50kW however, tariffs are likely not be affected too severely, certainly in the initial reckoning. Systems which are 10kW or below will likely hold with the existing tariffs, whilst as reductions become effective, they will come in the form of 10% increments over an extended period of time from October 2011.

Existing installations, and those already accredited to the scheme will not be affected by any reductions once they are confirmed. As such, home investors wishing to boost their green credentials with the technology should not be put off by the review announcement.

Indeed, solar panel suppliers are advising that early as possible take up is encouraged, to best take advantage of the benefits that the FiT scheme can deliver and maximise the realisation of returns.

A recently announced government backed scheme is encouraging green living homeowners to save and make money through solar panel installation.

Despite the initial set up costs, the projected income from solar panels installation is likely to exceed this in little more than a decade, meaning a 10+ return on the initial investment per annum. This is something that thousands of couples and families have signed up for, and numbers are increasing.

Other than the obvious green benefits, there are three other incentives attracting savvy early investors to the scheme. High on this list is the clear savings that are made through reduced energy bills, but the benefits are far wider reaching than this.

Through the government Feed In Tariff scheme, owners are also paid for any power that is generated through the system – even if it is used on the owner’s own premises. Any surplus power produced is sold back to the grid.

The scheme is presently guaranteed for 25 years. This, when broken down, represents a considerable return on the average investment.

Most homeowners are likely to spend between £10,000 and £12,000 on the solar panel installation and, through the scheme and savings made on energy bills, generate at least £800 income per annum. The result of this is that in just over 10 years, the solar panels should have paid for themselves.

For those looking at innovations to become more environmentally friendly, the scheme is seen as a great step forward. Potential investors are encouraged to seek out reputable solar panel installers to ensure expert guidance and advice.