Financial incentives

Of course we’re all concerned when the government makes changes to renewable incentives – but as energy prices rise and solar panel prices fall, solar is still a wise investment. The proof is in the numbers.

Homeowners can make or save money in three ways. What’s more, you’ll be independent from rising electricity costs.

Make an income from the feed-in tariff.

Make money by selling surplus electricity to your energy provider.

Reduce your electricity bills forever!

What's the feed-in tariff?

It's a government policy introduced in 2010 to encourage the uptake of renewable energy in the UK. It rewards you for any energy you generate from a solar installation, regardless of whether you use the electricity or not.

The income is guaranteed for 20 years and is index-linked, meaning it will go up each year with inflation. If electricity prices go up more than inflation – which they have for the past decade – your savings would grow even quicker. And unlike many other investments, it's also tax-free for homeowners.

How the numbers stack up

Here’s an example:
  • You invest £5,150 on one of our systems
  • In the first year, you make £350, through a combination of income and savings
  • This increases with inflation, so that over 20 years you make a profit of £4,447
  • That’s a tax-free return of 6.5%.*
graph

*Assumptions

  • 1) A south-facing roof at typical pitch in central UK with 10% shading, giving 837 kWh/kWp yield (source: MCS, SC analysis)
  • 2) Electricity savings calculations are based on 45% of the solar energy produced being used in the property, typical for the UK (source: DECC).
  • 3) Property has an Energy Performance Certificate rating A-D
  • 4) Investment based upon SC’s 3.1kWp polycrystalline system
  • 5) Feed-in Tariff rates as at April 2016, tariffs paid for 20 years from the point the solar system is accredited
  • 6) Savings of 16.0p per unit of electricity, at 5% annual inflation (source: DECC Quarterly Energy Prices, 10 year average )
  • 7) Export tariff payments are based on a deemed export of 50%
  • 8) Profit after cost of installation and includes £20 p.a. maintenance costs (index linked)
  • 9) Return being tax-free, with the average annual return (IRR) taken over 20 years
  • 10) Payback being the time taken to recover the initial outlay to the nearest year

Find out how much you could save with our solar offer Together with IKEA

Together with IKEA

Use our handy tool to get a quick estimate of system cost, savings and return on investment based on your actual house and location.

This site uses some unobtrusive cookies to store information on your computer. Using cookies will improve your user experience. By using Solarcentury, you agree to the use of cookies. For more information please read our Privacy and Cookies policy.

-