Close

Lower Prices Give 10% ROI

Paul Eco2Solar

Rumours of Solar PV’s death have been greatly exaggerated

Like many people, Eco2Solar have noticed the drop in installations since the introduction of energy efficiency (EPC) requirements on April 1 this year. With DECC publishing weekly data on the feed-in tariff (FIT) scheme’s capacity, we are not alone.

It has been suggested in the press and by some in our industry that the recent cuts will kill the industry. Some said a 50 per cent cut to the feed-in tariff (FIT) would kill the industry back in December 2011, but, as we suspected, this did not materialise. Unfortunately the suggestion that the cuts would kill off the industry is what has dominated the press coverage.

So is this why has everything seemed to have slowed down?

The first reason is because customers are confused by the conflicting information that is being peddled about. They may also be fed up with the constant changes and tinkering by the Government.
But, to put the situation in context, the FIT scheme was always meant to be temporary to support a new fledgling industry. It was always designed to be reduced in line with costs.

The fact is the current rate of 16p works. As an industry we need to focus on reassuring the public that solar still provides great returns. The current tariff of 16p/kWh for domestic schemes is producing a sound Annual Return of around 10%; thanks to the reduction in Solar PV panels and component prices – which is guaranteed for 20 years and linked to inflation.

That is equivalent to the return we could provide a year ago when people were queuing up to buy solar PV systems! We just need to ensure that the costs and benefits stay in line going forward.

Secondly customers believe that the EPC requirements will make a solar energy system prohibitive. To put customer’s minds at rest we have now installed quite a few systems following an EPC. This EPC can be organised in days and, in more cases than not, simply comes up with a ‘D’ result following the installation of the solar PV system or a few simple measures; like a temperature thermostat on the hot water cylinder. Most buildings (domestic and commercial) pass without fuss.

So we need to be positive and extol the huge benefits of Solar PV because we recognise that we have a great technology that has delivered astonishing cost reductions in recent months and years – and will continue to do so.

Paul Hutchens
Managing Director
Eco2Solar Limited

 

 

Solar PV Quote Comparison

 

To highlight the fact that Solar panels and Solar PV is still a great investment we have compared an old quote that was subject to the old feed in tariff rates, and a recent Solar PV quote that is subject to the current 16p rate.

The results are encouraging with both quotes showing a return of over 10% per annum.

How can we achieve this, well we work hard to source the best solar panels, inverters and the other components of a Solar PV system at the lowest cost for our customers. We combine this with our own efficient in-house installation team to keep costs down and pass these savings on to our customers.

If these figures interest you and you would like further explanation please contact us either directly by phone 01562 977 977, by email

or select the call back or web quote buttons at the top of every page.