When the Government initially introduced the Feed In Tariff, homeowners could easily expect to make around £1,100 per year – and that’s without factoring in the cuts to their electricity bills. However, since the freeze in the rate of inflation, those profits are considerably less – although this is mitigated by the cost of a solar panel system from back in the day, which tended to be around £12,000. Today, the cost is much less, ranging from around £5,000 to around £8,000. At MIG Renewables, we’re often asked if installing solar panels still makes sound, financial sense. The short answer is: ‘yes’.
When to jump on the bandwagon
Despite the current rate of inflation having a somewhat negative effect on earning potential, the potential is still there – particularly because of a Government-driven incentive. The Government has said that any panels installed will have their rate fixed for 20 years, which will only rise with inflation; that rate can never drop below your initial sign-up rate. In essence, the earlier you jump on the solar panel bandwagon, the greater the potential there is to earn more money.
The long-term benefits
For the majority of homeowners, there’s period of roughly 10 years in which you will finally recoup your costs. While that may sound like a long time to wait, don’t forget that this excludes the money you save on your bills; we’re talking exclusively about the money you can make through the Feed In Tariff. Once you’ve broken even on your expenditure, everything else that comes through your panels is profit. For this reason, solar panels are seen as a superb investment for those who’ve got a little lump-sum kicking about and don’t know what to do with it.
Making the most of your home
In addition to the money available to homeowners directly, installing solar panels can offer other forms of financial benefits – primarily through adding value to the cost of your home. As the Government is starting to take carbon-footprints more seriously, homes that use their power efficiently and without harming the environment are becoming more desirable.
At MIG Renewables, we’re keen to share our expertise and knowledge with those who want to become part of the Devon solar revolution and get off the grid. Give us a call, today.