this price is a large part of the reason your figures don't end up with reasonable rates of returns.£9500 for a 4kWp system.
Discuss Can DECC keep the FiTs scheme open? in the Solar PV Forum | Solar Panels Forum area at ElectriciansForums.net
this price is a large part of the reason your figures don't end up with reasonable rates of returns.£9500 for a 4kWp system.
ah.. also this. Why are you assuming the system will be worthless after 25 years?£380 depreciation.
this price is a large part of the reason your figures don't end up with reasonable rates of returns.
ah.. also this. Why are you assuming the system will be worthless after 25 years?
the panels are still guarateed to be capable of producing 80% of their initial rated output at that point, and given the likely price of electricity by that stage, solar PV systems should retain a significant level of value.
plus in actual cash terms, the person invests eg £9500 in a solar system, at that point effectively that money is gone, replaced by an annual payment. The payment they actually receive each year shouldn't then also have £380 taken off it as you're then basically double counting for this side of things in your estimates.
It's really most comparable IMO to a pension or something similar that makes annual cash payments, but has a much lower value if someone tries to cash it in.
North sea gas fields are in rapid decline
nothing to do with that, they're in decline because the fields are nearing exhaustion and they've been using every trick in the book to keep them pumping as fast as possible for as long as possible, so the decline will be even faster than it otherwise would have been.That doesn't have to be the case.
As I understand it, it's largely because the government slapped a big tax hike on the oil/gas producers, so they abandoned or mothballed oil and gas fields to wait and hope for a better environment in which to operate.
By government dithering, do you mean government refusal to sanction further massive subsidy of 4th or 5th generation nuclear?Only recently, two of the big six permanently scrapped any nuclear plans due to government dithering and lack of clarity (much like the confusion and inconsistencies with solar PV and now RHI).
Whatever works for you I guess, for most people that'd confuse the hell out of them, and they prefer a simple - if I give you this much money, how much money will I get back each year, what will that be in total after 25 years, and what's the total profit over that period? Basically they're well aware they've spent the £8k or whatever up front.The depreciation charge is because if I put money in the bank (or into shares of high-quality companies), I can expect to get it back at some point in time (and the shares may well have paid cash dividends along the way).
arguable, but even if true, then they'd still have a value as something that saves you a signficant amount of money each year.Once I spend money on solar panels, they cannot be re-sold.
they'd still have a value as something that saves you a signficant amount of money each year.
Yes, on that basis I would certainly ask a higher price for my house if I ever wanted to sell it, given the 3.75kWp (43pFiT).
It'll be interesting to hear what estate agents are estimating as the "value-added" by a well-designed PV solar array which didn't detract from the looks of the house.
.
Self use is a mine field. 40% for an average householder with a 4kW system is wishful thinking.
the problem with the Net Present Value method of calculating rates of return is that for probably 95% of customers they will simply take the NPV rate you give them and compare it to the bank interest rates they're currently getting without realising that NPV has already done that comparison and is giving them the additional value on top of the bank rates they could be getting.I extracted the Net Present Value
we tend to use 30% for 4kWp systems unless we have data showing they're heavy daytime energy users.I totally agree, we advise our customers, based on our experience that 25% can be achieved with some hard work, anything over that extremely optimistic, unless your meter is going backwards ;-)
Self use is a mine field. 40% for an average householder with a 4kW system is wishful thinking.
.......I am contemplating using <NPV> for professional investors, buy to let types and businesses......
Yes, I think that most people's eyes will glaze over if you get too complicated and you may end up losing a sale to someone who has been less thorough in providing the investment case...... don't want to risk confusing <ordinary> customers too much......
Reply to Can DECC keep the FiTs scheme open? in the Solar PV Forum | Solar Panels Forum area at ElectriciansForums.net
We get it, advertisements are annoying!
Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.