solar quote question - estimated return on investment timescale.

[jouleflow]

Does anyone know if a solar installation quote should include the loss of interest incurred on the investment. Should this amount be factored into the return on investment time scale. On a large installation this makes a huge difference to the payback time.

 

[suffolkspark]

Probably should, but probably isnt.

 

[solarsavings]

No.

 

[Baddegg]

Probably not relevant here but....I did some work recently for a young couple who were having a tough time remortgaging because the contract for the solar panels on their house (installed prior to them buying the place) meant they didn’t actually own the roof of the house, nor do they make any money from the panels themselves........not sure how true it all is but they seemed pretty stressed about it

 

[snowhead]

They will still own the roof, as they'll find out if it needs repairs
The owner of the panels won't want to know.

They should also be gaining from free electricity when the sun shines, that's their rent from the roof.

Re the O.P
No I don't think they can be, it would be for the customer to make the judgement.
Interest rates would be difficult to predict for the future.
Would you use current account with interest or I.S.A or shares as the basis for loss?

My Personal pension forecast 20 years ago, even the most conservative one, showed me with a similar income from it now as I had income from employment then.
It's not even a quarter of that.

 

[Baddegg]

It was only a quick conversation and I did say that same thing, the solar people won’t repair any faults, they were adamant about it though and seemed sure they don’t earn out of em at all.
My advice was to take it up with the solicitors that dealt with the sale initially,it’s the new mortgage company that are saying the as per the solar contract the roof isn’t yours..

 

[jouleflow]

They will still own the roof, as they'll find out if it needs repairs
The owner of the panels won't want to know.

They should also be gaining from free electricity when the sun shines, that's their rent from the roof.

Re the O.P
No I don't think they can be, it would be for the customer to make the judgement.
Interest rates would be difficult to predict for the future.
Would you use current account with interest or I.S.A or shares as the basis for loss?

My Personal pension forecast 20 years ago, even the most conservative one, showed me with a similar income from it now as I had income from employment then.
It's not even a quarter of that.

Thanks for getting back to the original topic.

I understand that interest rates can't be predicted but all the other factors in the quote are estimates, such as, future electricity prices, sunshine & average usage. What the client needs to know is the cost of not going ahead compared to going ahead! so there must be a provision for interest incurred or lost in the quotation. It could be that the initial money is a loan so the current interest rate for loans will be a major factor in the decision. I believe it is so important as the interest on the loan ( or savings withdrawal ) can easily exceed the benefits. Surely this should be pointed out to all potential clients as it is could be easily the major expense compared to any feedback or savings.

 

[suffolkspark]

If they were 100% honest about costings and savings then they wouldnt sell any systems

Same as these amazing german clay cored radiators which will save you millions of ugandan dollars vs normal ones

And electric cars which are so much better for the would because they emit no c0...

Marketing.... Its all a scam

 

[CableTies]

A guy I did some work for a few weeks ago said he'd looked into a solar setup for his house but the feed-in tariffs for domestic generation have been dropping for years and have got so low now that his proposed install wouldn't ever recoup its cost within its functional life.

 

[jouleflow]

If they were 100% honest about costings and savings then they wouldnt sell any systems

Same as these amazing german clay cored radiators which will save you millions of ugandan dollars vs normal ones

And electric cars which are so much better for the would because they emit no c0...

Marketing.... Its all a scam

Surely there is a code of conduct or some industry guidelines.
Does anyone know where I can look to find out?

 

[Octopus]

If you are "investing" in solar panels - be very careful ...... the fit rate is how much now? The interest rate on your loan will be how much? The reduction in your electricity bills might be?

Unless the company selling these can come up with decent numbers for you to read, understand and analyse its hopeless.

oops - just realised you are the one selling.

 

[solarsavings]

If he/she is the one selling then he/she will know where to look and shouldn't need to ask here.

 

[jouleflow]

If he/she is the one selling then he/she will know where to look and shouldn't need to ask here.

Hi, I am not selling, I am coming to the end of my first year of having solar installed & thought it would be a good idea to compare the quoted savings to the actual savings. I expect most people do to check if their quoted promised returns are achieved. I assumed in the original quote that some provision was made for interest. Checking back, there was no reference to this, I know I should have checked. Doing some rough calculations the system return barely covers the interest I would have received on my offset mortgage savings account. This is why I strongly believe that this hidden cost should be included & clarified on the quotation by law ( or is it? ). It will always have an effect on the profit or loss during the life of the system whether you use your savings or borrow the money.

 

[solarsavings]

Do you expect everything to be pointed out to you as you make your way through life? or just those where you realise too late you would have been better off financially doing something else.
You had the correct paperwork by the sounds of it but failed to read it properly.

 

[jouleflow]

Do you expect everything to be pointed out to you as you make your way through life? or just those where you realise too late you would have been better off financially doing something else.
You had the correct paperwork by the sounds of it but failed to read it properly.

I only expect to be told the full implications when entering into a contract. It is clear and reasonable to expect the interest costs to be part of any forecasts, especially the return of investment timescale. All money attracts interest whether borrowed or from savings, so I cannot believe why any company would fail to include this cost. This is especially true as it forms by far the largest part of the annual expense to offset against the benefits.
My paperwork may be correct but I am saying that it is reasonable to expect all costs to be included in any forecasts. Using my figures, yes I would definitely have been a lot better off " doing something else " but it wasn't supposed to be a gamble, just a government backed investment. I fail to see how anyone can get a return when all the costs are taken into consideration. Even if my install lost a little every year it wouldn't be too bad as I will be doing my bit for the environment. But: it hasn't achieved anywhere near the returns forecast, even with this hot Summer & mild Winter.

 

[Baddegg]

Considering the argument you put across now that must’ve been one hell of a salesman to hook you!

 

[jouleflow]

Considering the argument you put across now that must’ve been one hell of a salesman to hook you!

Yes, I saw a 4 year payback & couldn't get my pen out fast enough!

 

[Baddegg]

Yes, I saw a 4 year payback & couldn't get my pen out fast enough!

I can’t comment, I’m like Homer Simpson when it comes to salesmen.....specially if it’s tools......

 

[jouleflow]

If he/she is the one selling then he/she will know where to look and shouldn't need to ask here.

Do you know where I can find the guidelines to what figures should be used to calculate the return on investment. Can you please let me know so I can have a look if you do. Are Solar companies governed by a specific code or is there a general code that they must adhere to?

 

[Gary K]

My thoughts are that you have left it very late to get a solar system fitted. I am not sure what FIT rate your system attracts but in previous years before the massive cuts in FIT rate, if you had the money available,the returns from a PV system far outweighed what the return was if left as savings so this was not an issue.
There are thousands of PV installs that are making approaching 2K a year in FIT returns but to install they cost considerably more than your system, I suspect