The Solar Trade Association (STA) has calculated returns of 9.8 percent for domestic customers under the new 16p Feed-in Tariff rate which kicks in tomorrow (1st August).
Using its own formula which is based on 4kW system costing £8,000 and a 50/50 split between electricity consumed and the amount exported to the grid, the STA says the system would pay for itself within 10 years and deliver a healthy return over the 20 year lifetime of FiT. The calculation also factors in the government’s own projected increases in electricity prices.
STA ceo Paul Barwell said: “Our figures show that solar is a no brainer investment. Compared to the returns you can get these days in banks and many other investments, solar provides a very solid and attractive return. That is particularly the case if you consider energy bills are rising faster than anyone expected.
“Investors in solar are also helping us to drive an exciting energy revolution, putting power in the hands of everyday people, while saving the planet.”
He added: “Nobody knows what electricity prices will be in future but we do know they have gone up substantially over the past few years. This trend may well continue as the UK becomes more reliant on importing its energy in an increasingly competitive world.
“Solar gives people the opportunity to take control of their electricity bills and help us move away from damaging fossil-fuel dependence. We believe the smart money is on solar.”