Are free solar panel installation schemes a good idea? Article update.

Free Solar Panel Installation Offers - UPDATE

There's been much hype in the national media recently about companies offering free solar panels and installation. One company in particular is quoted as aiming to offer free solar panels to 2.5 million homes in the UK.

Of course, there is usually a qualifying criteria - for example which part of the UK you live in, the amount of available roof space, the direction that roof points in and whether the roof is shaded by overhanging trees or structures on your own or neighbouring property are all taken into account besides other criteria unique to that particular company.

What do you gain from a free installation?

For a start, the solar panels and their installation is carried out free of charge to yourself. Once the installation is complete, you get to enjoy the daytime energy cost savings for using your own produced energy.

You'll also benefit from a hoped for increase in your property's value should you decide to sell it at some point in the future. The 'deal' stays with the property rather than the owner so everything is just transferred to the new owner.

After 25 years, you'll also own the panels out-right. (25 years being the normal period of such agreements).

The money you would have spent on the installation can either say in your savings or be used to fund another home improvement etc.

What do you loose by having a free solar panel installation?

You'll forfeit any subsidies or grants payable to yourself for the installation and any excess energy which is 'sold back' to the national grid will be credited to the company that 'own' the panels rather than you the homeowner. Think of it as letting your roof to a 3rd party for their own financial gain.

If you do sell your property before the end of the agreement, prospective buyers may be put off by the 'taking over' of an agreement they weren't originally involved in. There could be extra legal hurdles to jump through to complete a sale. Some people have reported having to remove panels to attract a buyer.

You may own the panels outright after 25 years (or whatever the agreement period is for) but you'll then be responsible for their maintenance and replacement of failed units if you want to continue enjoying the energy savings they produce.

(It should be noted that although todays panels are usually rated to last for 25 years, many perform for 5 or 10 years afterwards without replacement).

We haven't seen anything that outlines who's financially responsible for the panels i.e house insurance cover in case they're damaged by fire, structural collapse or storm damage etc. We're assuming faulty panels would be replaced by the installer f.o.c? Worth asking if you get the opportunity.

Remember there's no such thing as a free lunch

Most independent consumer watchdogs are warning homeowners to explore such free panel offers with their "eyes wide open". Remember there's no such thing as a 'free lunch'.

Some have gone further by comparing the cost savings of a free panel scheme compared with taking a 10 year personal loan for your own installation and enjoying all the rebates and tariffs. Unsurprisingly, the figures came out in favour of funding your own installation.

Indeed, some believe we could soon see these 'free-fitting' companies starting to offer extra incentives like cash sums up front or a share of the energy generated profits as more of these companies spring up around us. They'll all be chasing the same housing stock / addresses after all.

Free solar panel installations still have a place

However, that option may not be available to everyone, so the free panel schemes do have an important part to play in the mass uptake of renewable energy generation in the UK. if you're approached by a free solar panel 'deal' company, after getting their figures, why not use Solar Panel Quoter to get up to 3 independent quotes in writing from other local solar panel installation companies and draw your own comparisons.

Either way, early uptake of either a free panel offer or installing your own system is essential if you're to make the most of the rebates and energy tariffs. We've already seen other european countries reducing their tariff levels (which apply to new applicants after the tariff change), claiming financial ruin if they keep them at their inception levels, such is the popularity of such schemes. Remember, the feed-in tariff scheme is fixed at 25 years starting from this April (2010) just gone, and applies to photovoltaic (electricity generating) installations only.

You'll find more information and news stories on renewable energy on our popular daily renewable energy blog - and free installation schemes in our recent blog post: click here to read their free solar panels article.

photo credit: gary soup

Feed-in Tariffs announced - How much money will you save on solar panel installation?

Feed-in tariffs announced - what can you expect to save on your solar panel installation costs?

Yesterday, Energy and Climate Change Secretary Ed Miliband announced the Governments feed-in tariffs for small scale low carbon electricity installations to begin in April 2010.

Under the tariffs, homeowners and small businesses will be able to earn an income from their photovoltaic or wind turbine installations etc, whilst also saving money off of their regular energy bills.

The Energy and Climate Change Secretary said "The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past. It will also change the outlook for a range of industries, in particular those in the business of producing and installing small scale low carbon technology.”

The tariffs are also good news for anyone with a photovoltaic solar panel or wind turbine installation on their home or small business, which was installed and commissioned after July 2008, as they will also qualify.

Feed-in tariffs are fixed in their period of years so maximum savings / cutting down the pay back period on an installation will only be achieved by joining the scheme at the earliest possible point - preferably having your installation installed and working when April 2010 arrives.

For many, it's the introduction of feed-in tariffs which finally makes installing solar or wind power a viable exercise in terms of recouping their initial installation costs in a quicker timeframe.

Show me the money!

Yes - it's all very well and good talking about incentives and commission dates but what do the tariffs really mean for the average homeowner? How much are you likely to earn from a typical photovoltaic solar panel installation on your home?

According to the Department of Energy & Climate Change, a typical 2.5kW photovoltaic solar panel installation in a good site could offer a homeowner a reward of up to £900 as well as saving them £140 a year on their electricity bills.

From 1 April householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels and wind turbines up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. The level of payment depends on the technology and is linked to inflation.

The Tariff lifetimes are different for different types of renewables with Photovoltaic solar panels having a tariff of 25 years and Wind power 20 years.

Check out the full tariffs at the Department for Energy & Climate Changes website - (click here). Householders and communities can apply for the feed-in tariff from their electricity supplier from April 2010. Ofgem will administer the feed-in tariff scheme and suppliers will be responsible to paying the reward to their customers.

If the Feed-in tariffs are what you've been waiting for, then nows the time to start thinking about getting an installation quote. Solar Panel Quoter can help by providing a free online quote based on your requirements.

It's a completely FREE service but you could save pounds, plus, after you've got your online quote, we can also help by putting you in contact with reputable solar installation companies in your area.

photo credit: horia varlan

Photovoltaic Solar Panel Installation costs not what they seem

Happy New Year everyone and welcome back to Solar Panel Quoter - the Blog, after the Christmas break.

Just like those New Year Sales, we're back with a vengeance, Solar Panel Quoter - the Blog - will be bringing you an almost daily digest of the latest solar and other renewable energy stories throughout 2010.

Like this one....

The Daily Herald in Chicago (USA) reported just before Christmas on a new photovoltaic solar energy installation at Schneider Electric.

What struck me about the story was the miss-leading way the installation costs were put across.

Their recent completion of a photovoltaic solar panel installation quotes them as saying the project took about six months to complete at a cost of $750,000. The company expected to save $9,000 annually off of their $316,000 electric bill.

Hang on a minute - that doesn't sound like a very short pay-back period (does quick mental maths) that's 83+ years to get your money back. With a quoted life expectancy of 40 years - thats 43+ years short.

It doesn't paint a very good case for installing solar energy does it?

Ah - but read onto the bottom of the piece and we find out that the company predicts "It has a payback time for the company's costs of installation of 8 to 10 years, or roughly $90,000. The rest of the construction cost was supported by federal and state incentives and tax credits, the company said."

That's more like it. Read the full piece at the Daily Herald by clicking here. There's a useful quote about the effectiveness of photovoltaic solar power even in climates / states not renowned for their geographic position to take full effect of solar energy.

It also goes to show the continuing importance of national and local government subsidies as well as an increasing involvement by the private sector if renewable energies like solar power are to appeal to homeowners and businesses alike in the UK.

photo credit: francisco osorio

Installing renewable energy - there may be grants available

Thinking about getting solar energy in your home? There may be grants available....

"If you are considering installing solar energy or any other type of renewable energy in your home, you may be eligible for a government grant. Grants are not means tested and qualifying is straight forward.

Across the UK, the DTI's low carbon buildings programme provides grants for householders on microgeneration technologies including solar photovoltaics, solar thermal hot water, wind turbines, small scale hydro, heat pumps and bio-energy.

In Scotland, the Scottish Community Householder Renewables Initiative (SCHRI ) provides grants for householders funded by the Scottish Executive and managed by the Energy Saving Trust. Grants are available for solar, water and space heating, small-scale wind and hydro systems, ground source heat pumps and biomass. Funding for householders is set at 30% of the installed cost up to £4,000."

... taken from Energy saving advice

Part of that process is getting quotations to submit with your grant application, showing how much the installation is going to cost. You can get access to these installation companies across the UK by getting an instant online quote for your solar panel installation, whether that's hot water systems or photovoltaic (electricity generating) systems.