pv power, what have I missed?

[cozycats]

Been researching pv today, I hadn't realised how much prices have dropped. I can now afford it but am perplexed. Is it REALLY possible to make £40k profit over 25 yrs with a 2.8 kw setup or is this all govt bull****
I've just been looking at online calculators, but somehow don't believe them
Sorry Bas BUT IF YOU CAN'T BEAT 'EM!!!etc.
morally I'm totally agin the FIT but they've taken my NI for over 35 yrs and what benefits am I entitled to........NONE
Sorry for the rant

 

[flameport]

The important thing to remember is that the initial money spent on the system is lost, so for the first 10-15 years you are much worse off than you are now.

When you have recovered the initial cost of the system, plus any inflation over the 10+ years, plus whatever interest could have been earned on that money over 10 years, you theoretically will be making some money.

Of course, those who have purchased a PV system will say it is the most wonderful thing ever and they are making shedloads of money from it. Just like Russ Andrews customers.

 

[Paul_C]

And even once the installation cost (plus whatever you need to make up the loss on what you could have made investing the money elsewhere) has been paid off in perhaps 15 years time, what guarantee do you have that you'll continue to be paid the ridiculously high feed-in tariff rate per kw-hr that exists at the moment?

In fact, what guarantee do you have that it won't all collapse in another 5 or 10 years leaving you in the position of being unlikely to even cover the initial installation cost at all?

 

[EFLImpudence]

Because politicians would never go back on their word.

 

[big-all]

if they can say to civil servants that they will have to pay in more and work for longer for less they can sure change the ground rules at will

what happens when you roof needs repaired or wrongly fitted or indeed fitting panels invalidates you insurance
or the insurance wont pay out because they did not give permission

 

[Stoday]

People change house, on average, once every ten years. As the fit lasts 25 years, there will be a lot of houses sold with a pv system on their roofs.

1) Will you be able to take the pv installation with you to your new house? I doubt it.

2) Will the new owner be able to take over your feed in tariff? I suspect not because the fit contract was made with you, not the new owner.

3) What value will a purchaser put on the pv installation? If no fit, it'll be negative. Even if he retained the fit, he'll only get it for (say) 15 years, so the maximum value he'll put on it is 60% of your purchase price. But he'll know you can't take it with you, so you'll be lucky if it will add anything.

 

[ban-all-sheds]

holmslaw doesn't like my opinions.

Proof positive of their validity.

 

[Stoday]

BAS, what a charming delightful ignorant a******e.

Who the a******e is in that sentence is indeterminate. It could be BAS or equally it could be cozycats.

On the other hand, BAS seems to recognise the description as applicable to himself...

 

[holmslaw]

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[holmslaw]

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[cozycats]

I DID see BAS' comments, they were exactly what I expected .
I'm sorry that this thread has degenerated into yet another slanging match.
Thanks for the constructive comments. Yes my greatest concern is the govt just scrapping the FIT in a few years when the costs start really mounting up. After more reading, If I understand correctly the FIT was dreamed up to bolster the governments renewable energy. 'gap', and I seriously now think that once all the windfarms start coming online it will not be necessary. The FIT is apparently transferable, but as has been said it's doubtful that it will increase the value of a house significantly,

 

[JohnW2]

The FIT is apparently transferable, but as has been said it's doubtful that it will increase the value of a house significantly,

Yes, amidst all the other considerations and 'emotional' arguments, I think that's an issue which many people overlook.

People tend not to stay in the same house for decades. Even if the FIT is not killed by government at some point in time, anyone who paid for the pv installation and then moves within the first 10-15 years, before they've even got their investment back, is unlikely to persuade a buyer of the house to 'take on' the outstanding amount of that 'loss' by way of an increase is buying/selling price. So, even if one puts all of the other issues aside, it probably makes no sense to contemplate paying for a pv installation unless one is pretty certain of 'staying put' for at least 20-25 years. That probably rules it out as sensible for anyone beyond their mid-50s, for fairly obvious reasons.

Of course, if you get the pv installation installed 'free' by a third party (who is going to pocket the FIT), the arithmetic then changes. I guess that, in some senses (other than having your house made to look ugly), one "can't lose" in that situation.

Kind Regards, John.

 

[cozycats]

Hi John, anyone going down the third party route must be totally insane. Who will ever buy a house with a sitting tenant that only pays perhaps £200 pa rent?

 

[Paul_C]

Well, I'm glad to see a moderator has deleted the completely unwarranted outburst using the most foul language which was posted earlier. To the issue at hand.....

Of course, if you get the pv installation installed 'free' by a third party (who is going to pocket the FIT), the arithmetic then changes. I guess that, in some senses (other than having your house made to look ugly), one "can't lose" in that situation.

I would say that it could actually make the situation worse. At least if you pay for the equipment and after 5 years find that the FIT scheme has collapsed and it's doing you no good whatsoever you have the option of cutting your losses and selling the equipment on, perhaps to somebody on a smallholding out in the sticks not connected to the grid. With the "free" third party schemes, you may not lose the installation costs, but you're stuck with a long-term contract where the company is renting space from you. If you do want to sell, you'll either need to try and convince the buyer to take it all over, or probably end up paying a huge amount to get out of the original contract term.

My neighbor inquired about such a scheme a couple of months ago, as he'd been given a load of promotional material and the sales spiel about "free" installation and how much he would save a year on his electricity bills. He agreed that it didn't look anywhere near so attractive after I'd explained the catches.

 

[holmslaw]

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