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When the FIT rate was 43p Solar PV was a fantastic investment, with annual returns of 10-13% on your capital outlay, this is index linked to the RPI for 25 years, as it was offering such high returns, there were many investors that seized the opportunity, many large investments were made in a short space of time, causing the government to panic and bringing the PV industry into a state of disarray.

So, Where are we at now?

With the FIT rate now down to 21p for domestic sized systems, you may think that PV is just not viable, linked with some ill informed media coverage, and some added complexities like EPC's (energy performance certificates), oh yes, and the talk of the Green Deal ( I will reserve judgment on this one), that PV does just not pay any more.

Well you would be wrong, now that system prices are at an all time low, if you add in the savings on your electricity bills along with the FIT, you can still obtain 8-12% returns per year on your investment, the only difference is your capital outlay is less.

My advice would be, choose your installer wisely, go and see some of there local installs, talk to their customers, you can not get a better, safer, return on you money in any other investment.

If you have considered Solar PV NOW is the time to act as the tariff is due to decrease at the end of June.
I hope this helps.

(This is posted to try and help the public, as there are many that read this forum, something that the media should be doing for us all.)
 
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Lots of info there ! I agree the 21p has opened up the market for people who like to spend that little less but still save on thier full bills and earn some cash while doing so......

the way I look at things is a 43.3p or 21p rates the system still produces same amount of energy per year therefore fuel bills will be a lot lower. The FITS tariff may be lower now but so is the outlay to buy one which still make the Returns on investement around 8% - 12% depending on roof direction.
 
So for example, what would a 16* Sanyo HIT235 plus SolarEdge SE3500 and optimsers cost me today?
 
I've just done a quote on 16 Bosch on an E/W split and it still gives a 10% return. Thats on SAP calculation, allowing 3% RPI and 7% fuel inflation. all our installs currently produce in excess of 20% over SAP estimates, so your looking in real terms a 12% return minimum, and thats an E/W system remember.

That seems pretty reasonable in this day and age!!
 
So for example, what would a 16* Sanyo HIT235 plus SolarEdge SE3500 and optimsers cost me today?

Don't think they do the 230W panel any more. Happy to give you a 'guide price' on a 4kW system of anywhere between £11-12k but you have specced up this system quite high. Panels on this- Sanyo (now Panasonic) are a premium panel as well as the solar edge system which is also a premium item.

You can buy a decent 4kW system for anywhere between 8-10k, even at 9k the return is around 12% (south facing roof), so you really are crazy not to do this.

Prices 'WILL' vary depending on where you are in the country but don't be taken in by someone offering stupid prices, a 4kW does not cost £16k any more.
 
When the FIT rate was 43p Solar PV was a fantastic investment, with annual returns of 10-13% on your capital outlay, this is index linked to the RPI for 25 years, as it was offering such high returns, there were many investors that seized the opportunity, many large investments were made in a short space of time, causing the government to panic and bringing the PV industry into a state of disarray.

So, Where are we at now?

With the FIT rate now down to 21p for domestic sized systems, you may think that PV is just not viable, linked with some ill informed media coverage, and some added complexities like EPC's (energy performance certificates), oh yes, and the talk of the Green Deal ( I will reserve judgment on this one), that PV does just not pay any more.

Well you would be wrong, now that system prices are at an all time low, if you add in the savings on your electricity bills along with the FIT, you can still obtain 8-12% returns per year on your investment, the only difference is your capital outlay is less.

My advice would be, choose your installer wisely, go and see some of there local installs, talk to their customers, you can not get a better, safer, return on you money in any other investment.

If you have considered Solar PV NOW is the time to act as the tariff is due to decrease at the end of June.
I hope this helps.

(This is posted to try and help the public, as there are many that read this forum, something that the media should be doing for us all.)


well said PM me for a quote lol
 
Yes, 3-4kWp systems remain a good investment - and I'm a "customer" not an installer.

Where else can you put money to give a decent, relatively predictable and relatively safe return and in something which will be useful for continuation of everyday life (unlike a bar of gold)?
Cash in banks? No.
Bonds? No.
Property? No.
Shares? No.
 
So for example, what would a 16* Sanyo HIT235 plus SolarEdge SE3500 and optimsers cost me today?

Not sold one sanyo system this year why ???? cost too much ROI drops to 9% ... if you want to boost performance the best way is to upgrade inverter to solar edge ....

Solar edge should be paying me for all the good press I give them ... but I do love them loads xxxxxx
 
What 'percentage' increase do you see with the Solar Edge systems? really want to try one but have to consider costs etc
 
our two oldest system which its first year is due soon are looking set to hit 20% more production than the SAP given

one is a Sanyo 3.8 Kwp Swansea wales

other is Samsung 3.9 kwp south coast.
 
Chaps, Please do not hi jack this thread, condemning certain sections of this industry, this was meant to be a positive thread, to help the customers, to explain to them that PV is still viable (maybe better than ever to be honest).

So please go back over what you have written, if you want to edit it with something more positive it would be of a benefit to all.

Look at FB's post, he is a customer and that is how new customers should be seeing things.

Rant over.
 

Quick Example of the SAP(Standard assesment procedure VS
Photovoltaic Geographical Information System)

SAP 4kW - Generation of 3605kW Per Year
PVGIS - Generation of 4470kW Per Year.

SAP is what we have to tell you the system will generate but is not very accurate and PVGIS is more localised.

Look at SAP as worst case scenario and PVGIS as a better estimation.

My SAP calculator is here
Solar PV SAP Calculator

PVGIS here JRC's Institute for Energy and Transport - PVGIS - European Commission
 
there is no doubt PV is. good investment, the costs have come down which makes it more affordable and has opened it up to a new market. Now the returns are more based on savings and not on government subsidies, in my eyes it is an even more cleaner solution for domestic installations.

Further evidence that it is a good investment, investment vehicles/funds (whatever they are called) are knocking down our door asking us to install on commercial buildings and are offering sensible terms. we do the whole process for them includng precurement. We are currently busy booking in 30kwp and above free solar jobs. and i see no reason this won't go on post july.

My advice for any customers is make sure your getting a good value for money equipment and a decent installation. there are some shockers around where corners are cut, know how it is going to look on the roof and how it will be wired. if your not sure about equipment do a bit of research or if you find a decent installer take their advice.
 
Don't think they do the 230W panel any more. Happy to give you a 'guide price' on a 4kW system of anywhere between £11-12k but you have specced up this system quite high. Panels on this- Sanyo (now Panasonic) are a premium panel as well as the solar edge system which is also a premium item.

You can buy a decent 4kW system for anywhere between 8-10k, even at 9k the return is around 12% (south facing roof), so you really are crazy not to do this.

Prices 'WILL' vary depending on where you are in the country but don't be taken in by someone offering stupid prices, a 4kW does not cost £16k any more.
\

Thanks, I already have a system specified as above, I was interested to see how much pri ces had dropped since the December deadline. It seems not that much according to your figures. Remember for some roofs it's not possible to use cheap and cheerful panels because of limited space. Also, not everyone has sufficient south facing roof space. For example my system is made up of south, east and west facing panels.
 
I only use SAP calculations when quoting !!!!

Not software so I was stating my sap for these customers where are 3400 ish kwh per year and now they are due 4000 so they where
happy at 3400 kwh but got 4000 kwh

Lets keep to the post topic

21p good investment ...

prices are right so is tariff go for it I say ...
 
21p good investment ...

prices are right so is tariff go for it I say ...


Yes. I think that 43p FiT and current prices would be ridiculously generous; more than twice the returns available from anything else and with less risk if the installer was reputable.
So 21p FiT was probably necessary, except that leaving the rate far too high for far too long, then moving the FiT rate by so much in one go has made a mess of the industry; causing a boom-bust bubble. The number of solar installations looks just like the share price charts of dotcom shares of 1999-2000's high-tech bubble mania.

The very announcement of a drop in FiT last autumn CAUSED the bubble. Fear of "missing out" caused many customers to bring forward purchases which would otherwise have happened during 2012 or even later. Therefore much of what would have been installed during 2012 was installed in a panic in late 2011.

So the 43p FiT should have been notched down gradually at the first sign of a bubble, in early 2011 (just as in the early 2000's interest rates should have been gradually notched-up to prevent the UK's debt bubble built on housing).

21p is a good rate of return and is probably fair. It just doesn't feel very fair because of what has been in the recent past.

13-16p from 1st July is probably a little harsh, but is still a respectable rate of return, with the very-valuable inflation-linking (with low-ish risk and quite diverse from other investments).
 
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