New research released by energy website Green Business Watch has found that investing in solar panels can still generate returns for homeowners, despite government cuts to subsidies. In fact, the report shows that the rate of return is higher now than at the launch of the Feed in Tariff scheme seven years ago.
Are solar panels still worth it in 2017?
In 2010, homeowners received a Feed in Tariff rate of 41.1p/kWh. Those rates have reduced several times and were slashed by the government in 2016. Today, the rate stands at 4.0p/kWh but surprisingly returns are higher now than they were in 2010. Research from Green Business Watch demonstrates that expected returns for a typical well sited solar installation in November 2017 stand at 4.9%. That’s 4.9% – post tax, index-linked, and with the tariff rate guaranteed for 20 years.
How are these returns achievable?
The returns can be directly linked to the significant fall in initial outgoings. The cost of a solar panel installation today is just a fraction of what it was in 2010. At £6,668, the median cost for a 4kW system has fallen by 67% in just seven years. This not only means that solar panels are more accessible to UK homeowners but that they’re receiving a greater return on their investment. Rising electricity prices also impact the viability of domestic solar panels, with greater savings on bills contributing to the return.
Alastair Kay, Editor of Green Business Watch, said, “Cuts to the Feed in Tariff scheme did make solar panels a less attractive proposition for homeowners and 2016 was a very difficult year for installers. However, the latest research shows that increasing electricity bills are resulting in a strong case for solar.
“Between 2010 and 2013 the cost of installing solar panels fell drastically but in recent years, it’s levelled off somewhat. Installation costs have stayed pretty much static in the last year but the price of electricity is going up. Homeowners looking to insulate themselves from rising electricity costs, can save with solar panels, contribute to a cleaner future and lessen their dependence on energy companies.”
You access the full report and further images here: