Despite the fact we are continuously advised by the government, by well-wishers and by a whole host of organisations to save, save, save, the reality is that with current account rates at 0% and ISA rates at no more than 2-3%, there is no incentive to save!
However, investing in a solar panel installation to generate your own solar electricity does make financial sense and returns a far greater return than many investment products on the market today!
How does it do this? The key here is the government clean energy cash back mechanism, or Feed-in-Tariff as it is more commonly referred to. This is designed specifically for renewable technologies, the fastest growing of which, at least at a domestic level, are solar panels. Solar panels make up part of a solar installation which generates solar electricity which bring you tangible financial benefit.
The essence of the Feed-in-Tariff is that the government will guarantee for the next 25 years that the energy company you use will pay you a certain amount for every unit of solar electricity you produce from your solar panel installation. This currently stands at a fantastic 43.3p for the average sized domestic solar panel installation! The great news is that this amount paid is also index linked and tax free!
On top of the amount paid for every unit you generate, the government also guarantees that for the next 25 years your energy company will pay you for every unit of solar electric you generate and do not use which you automatically export back to the grid! This is another 3p per unit. When you think about how many units of electricity can be generated in a day from a solar panel installation it soon becomes clear just how much money we are talking about.
The Energy Saving Trust for example suggest, rather conservatively that an average solar panel installation for a three bed house could generate an income of over seven hundred pounds per year, whilst some others claim it could be well over one thousand. When one considers that the cost of a solar panel installation would likely be around £10,000 it is clear that the solar panel system could pay for itself within ten years, yet that leaves fifteen years left of your government guarantee left, whilst your panels will keep generating free solar electricity for decades!
Overall then whilst getting solar panels and investing in a solar panel installation may be a long term investment, it is most certainly a profitable one!
To find out more and get the most out of your cash, contact Solar Days now!