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18 April 2010

Has anyone compared the benefits from investing in solar panels that generate electricity where you get paid for it under the recent feed in tariffs?

Under the feed in tariffs there is a payment from electricity companies for any electricity generated by photovoltaic panels and an additional payment if that electricty is exported to the national grid. On top of that any electricity generated and used replaces that which would have had to be purchased.These payments are guaranteed for 25 years and are index linked. There is a large capital cost for the panels, on an average house it would cost £10k, but the income from the electricity generated, exported and saved is about £800 pa, the govt says the rate of return is about 8%. I've done a few sums and depending on the size of the system and electricty produced (a larger system capital cost is cheaper due to economies of scale) I calculated that the capital sum if invested in an account with even a modest interest rate would accrue more over the 25 years. Has anyone else investigated this?

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