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Free Solar Panels - Are They Really Free?

When you tell UK homeowners that they can have free solar panels on their roof it usually goes something like this –

Are the free solar panels really free?

Yes they're really free...sort of.

What does "sort of" mean?

 Well, for the first 25 years you don't technically own the panels – but that's a good thing.

Why is not owning the panels a good thing?

 Because the solar company has the responsibility of maintaining the system.

Why would the company do this?

 Because the government pays them to.

 Where do I sign?

 In April 2010 the government introduced the new Feed in Tariff scheme to encourage the uptake of domestic solar power in the UK. This incentive is paid for 25 years for all electricity produced whether it's used or not and there's also a bonus payment for unused electricity that's fed back into the grid, (when this is happening some people like to watch their meter go backwards.) It's these payments that enable the company to fit free solar panels as, over time, they'll recover their costs and make a profit.

So what does the homeowner get out of the free solar panels? Free electricity! And, if that's not enough, many enjoy a rise in property value as well. Philip Sellwood, chief executive of the Energy Saving Trust said, "It seems Britons are willing to pay more for a home with a renewable energy source so investing in solar panels or a wind turbine could add to the resale value of a property and be as attractive to house hunters as a new kitchen or solid wood floors".

The amount of free electricity the homeowner can enjoy from their free solar panels depends on patterns of usage. We encourage our customers to use their appliances in sequence rather than at the same time. Using the dishwasher then the washing machine during daylight hours is the best way to save the most on bills. Those who are out all day can achieve this by the use of timers.

At the moment most companies are only installing free solar panels on roofs that fit certain criteria. Obviously the roof has to be large enough to accommodate the system and shading issues must also be considered but the two main considerations are pitch and aspect. A south-facing roof with a 30° pitch is perfect.

Of course the homeowners may not wish to opt for free solar panels and buy their system instead. In this case they'll benefit from the 25 year Feed in Tariff payments themselves. Every installation is different but, as an example, a home with a 4kW system on a south facing roof could expect to make around £900 per year clear profit in tariff payments and savings. And don't forget that property value increase.

One thing a homeowner taking up a free solar panels deal that those purchasing their systems don't is the knowledge that it's in the installing company's interest to be sure that all the equipment used is of the highest quality. They'll need the system to produce, to its highest potential, year on year or they won't make an eventual profit. This means the homeowner can rest assured that the free solar panels on the roof have been chosen for high production and long-term reliability.

So, in summary, it's well worth considering a free solar panels deal. And they really are free…..sort of.

 

About the Author

Don Mccarron is Director of Operations with Renewgen Ltd

www.renewgen.co.uk

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