The government requires electricity companies to pay householders for the power generated by solar panels on their property and to buy any surplus electricity that the householders do not use.
The government-set prices changed this month (August 2012), with a reduction in the price paid for power that householders use themselves but an increase in the price paid for power exported to the grid.
Solar power company Lark Energy (www.larkenergy.co.uk) part of the Bourne-based Larkfleet Group (www.larkfleetgroup.co.uk) says that the new prices make solar power a very attractive investment for house owners.
A returns calculator devised by the Solar Trade Association (STA) shows how much money domestic customers can expect to make.
Jonathan Selwyn, managing director of Lark Energy, said: The STA figures show that solar is a no-brainer investment.
Compared to the returns you can get these days in banks and many other investments, solar power provides a very solid and attractive return. That is particularly the case if you consider energy bills are rising faster than anyone expected.
Investors in solar power are also helping us to drive an exciting energy revolution, putting power in the hands of everyday people, while saving the planet.
The STA figures show that, for example, a family installing a 4 kW system this month costing £8,000, using 50% of their power in the home and exporting 50%, will get their money back within ten years. They will then generate a substantial profit for the following ten years because the Feed in Tariff (FiT) the government-regulated price which the power companies must pay is guaranteed for a total of 20 years.
The rate of return on the investment will be 9.2 per cent far better than is available from most investment schemes and bank accounts.
The solar power system itself is likely to last around 40 years, going on to provide many more years of household savings once the FiT has ended.
The STA calculator is based on the government's own projected increases in electricity prices and on established national average yields from solar power. In practice, electricity prices are rising faster than the government is projecting and power yields from solar panels in this region are higher that the national average. Consumers who use in their home more than 50% of the power that their solar panels generate can expect higher returns, while returns will be lower for consumers who use less.
Jonathan Selwyn added: The STA calculator is based on conservative assumptions. Using the real-world rate of increase in electricity prices means returns on the example above of a 4 kW system for a family home rise from 9.2 per cent to 11.4 per cent, with payback after just nine years.
Nobody knows what electricity prices will be in the future but we do know they have gone up substantially over the past few years. This trend may well continue as the UK becomes more reliant on importing its energy in an increasingly competitive world.
Solar power gives people the opportunity to take control of their electricity bills and help us move away from fossil-fuel dependence. We strongly believe the future for solar is now brighter than ever.
