Free Solar PV Scheme

With many homeowners throughout the UK looking towards Solar Power as a way of offsetting their energy costs, there are naturally many questions about the best way to get a solar panel array of your own, mostly centring on whether to pay for the panels yourself and reap all the benefits, or take up one of the many free panel offers around and let any additional profits be taken by the installer.

The Government’s Feed in Tariff (FIT) has been a big incentive for paid solar, not only allowing you to save up to 50% per year on electricity bills, but also guaranteeing payment for the electricity you generate, selling it back to the National Grid for a period of 25 years. The Government says payment will rise with inflation (linked to the Retail Price Index). It’s also tax-free.

A typical home solar panel system can cost anything from £5,995 upwards, however over the life of the 25-year FIT scheme, you stand to make profits of 100% making it a sound investment. Not only will you be making a greener environmental difference, you will also save up to 50% per year on your energy bills in addition to the payback scheme, which can earn you up to £1500 per year.

The other option is a so-called ‘free’ solar scheme, with some companies offering to install a free solar panel system into homes. You’ll make your home greener and can save on electricity bills. The difference is, the solar company will be paid any additional money you make from generating electricity. In this instance, it’s crucial to find a reputable solar panel installer, who should maintain the panels over the 25-year period and pay for insurance to cover any damage.

FREE SYSTEMS

Pros:

• Free electricity – Typically slicing your electricity bill by about 50% per year  – more if you’re at home during daylight hours or prices jump significantly.
• Make your home greener – Whether free or paid-for, solar panels let you make a contribution to reducing your home’s carbon footprint.
• Free maintenance – You should always check your contract, but usually companies installing free solar panel arrays insure and maintain the panels

Cons:

• You forgo the feed-in tariff – This is the big one – the free solar panel company keeps any money generated from the feed-in tariff – up to £1500 per year.
• Buyout fees – Some free solar panel companies will let you change your mind and buy the panels later – this can work out even more expensive though.
• Roof repair issues – While some free solar panel companies will repair your roof if it’s damaged in connection with the installation or operation of the panels, if you need to fix your roof for another reason and the panels are inoperative for any period, some companies may insist you cover their lost feed-in payments.
• Long term agreement – Think very carefully about the long term implications of signing yourself and your present home up to a 25-year commitment.