Conergy has launched its first quarterly Solar Returns Tracker today to highlight the long-term returns available to UK property owners, despite the 1 August changes to government incentives for solar power.
Robert Goss, MD Conergy UK said: “The Solar Returns Tracker is designed to provide clarity to British home-owners who have been bamboozled by all the talk of tariff ‘cuts’. Export tariffs are in fact going up 40 per cent which helps people who aren’t able to use so much of the power in their home. After 1 August, the reduction amounts to just £14 per month on a typical home installation.”
Solar installations plummeted to a record low of 885 a week in Britain after the Feed-in-Tariff reduction in April, when the government responded to a 50 per cent fall in panel prices – but by June had recovered to 2011 levels of 1,778 in June.
The Solar Returns Tracker forecasts financial returns from a typical 4kW domestic solar installation on a house in London costing £7,000. In its first edition, returns are estimated for installations completed before and after 1 August, when the Feed-in-Tariff will fall again, although the Export Tariff will rise. Savings on energy bills are factored in, using DECC forecasts of rising household energy prices, and are set alongside estimated returns from market-leading financial investments.
For solar installations completed and registered before 1 August, the Tracker projects tax-free returns of 12.8 per cent a year from the Feed-in-Tariff and Export Tariff combined. With estimated energy bill savings of £258.70 a year – rising to £311.50 in 2030 – payback on the £7,000 example installation is expected at six years. Over 25 years, total returns are forecast at £22,595 – an average £904 per year. This compares with a total of £8,838 for £7,000 re-invested in 5-year bonds at current market rates – or returns of £354 per year.
Goss added: “There’s a triple win here of reliable returns, reduced energy bills and DIY energy production that is very grown up. There aren’t many surefire ways of making £20,000, but you’d be surprised what you can be made from the roof over your head.”
The Conergizer can be accessed at: https://conergizer.conergy.com/uk/