Free Solar Panels
Free Solar Panels.... Sounds too good to be true, here at Solar Pages you can find out all about free solar panels, how the schemes work and whether they are a good idea for your property. The free solar panel schemes have appeared in recent years following the introduction of the feed-in tariff scheme whereby households with solar panels can receive payments for the electricity they generate and sell any unused electricity back to the grid. Free solar panel schemes are often known as 'rent-a-roof' schemes.
How do Free Solar Panels work?
A solar panel company basically leases your roof space, so there are stringent rules in place about the size and orientation of the roof. The solar panel company will install the photovoltaic solar panels to your house for free (there is sometimes an up front cost of up to £500 for scaffolding etc.), you as the household will benefit by saving some money on electricity bills using the energy produced. The company will benefit the most, as they will usually receive all of the profit from the feed-in tariff.
Some companies will sell the scheme as a try before you buy scheme so that if you decided in a few years time you wanted to own the solar panels and benefit from the feed-in tariff you would be able to buy them out. This can sometimes be cost effective, but in other cases the cost to buy the panels at a later date will not work out financially for the savings and returns available.
- Free Solar Panels
What are the advantages of free solar panels?
With the rent-a-roof schemes the main advantage for households is the saving made on electricity, which is approximately £200 a year, depending on property size, the size of system installed and other factors. Most companies offering the free schemes will cover any maintenance costs, so this is therefore not a concern. The try before you buy schemes that some companies offer mean that after a few years if you do have access to the cash you are able to buy out the company and take on the solar panels yourself. At this stage the household will start seeing the benefits of the feed-in tariff. Your carbon footprint is reduced without using your own cash to do so.What are the disadvantages of free solar panels?
Based on a 4kWp system, with the feed-in tariff set in place for 25 years it is estimated that a household could generate about £23k in payments for the electricity produced. Over 25 years it is estimated that a household could save about £5k using the free electricity, therefore if the household had owned the solar panels they would have saved and generated about £28k. The cost of the solar panels, even at the higher end of the prices would have meant they would have seen between a 40 and 50% return on their investment. So the household is losing out on the biggest benefit of having solar panels by using a 'free scheme'. Another potential drawback with the free solar panel schemes, and this will vary between companies and the contract they are offering, is the cost to buy the system at a later date. Some will have high charges early on in the agreement to buy the solar panels if you wanted to take over the scheme, and some do not even offer this as an option. Solar panels normally have a positive impact from a sales perspective for selling a property, but having a rent-a-roof scheme in place can put potential buyers off. They will of course benefit from the small saving on electricity, but if they do not like the look of having solar panels it may put them off, as they will not be getting the largest benefit of owning them – the feed-in tariff scheme. Some of the schemes run by energy companies will require you to be a customer of theirs already. Most schemes charge a sign up fee; this is usually about £100 but in some cases this can be as high as £500. If your house has any roof related problems after the solar panels have been installed that are not related, some companies will charge you for the loss in energy if the system has to be turned off whilst your repairs are carried out. Most companies will cover the cost of any roof repairs needed because of the solar panels.- Paying for your own Solar Panels
What are the advantages of installing your own solar panels?
When you own your own solar panels, you and your household alone stand to benefit from the profit that can be made using the feed-in tariff scheme. The income from PV solar panels over 25 years can be in the region of £30k, which is approximately 50% profit on the initial cash investment. You will also be benefiting from the daily use of free solar power, which will be a larger saving if you are at home in the day, this can save approximately £200 a year on your electricity bills. Your home's carbon footprint is reduced. You own the solar panels, therefore when you come to sell your property you can sell it with all of the benefits that you are experiencing from saving on electricity costs to earning money from the feed-in tariff.What are the disadvantages of installing your own solar panels?
The up front cost is the main disadvantage, which is why people are looking at the free solar panel schemes. If you do have access to the cash for investment or are able to get a loan then owning the solar panels is the best option in the long term. Any maintenance costs are down to the household, but these costs are very minimal across 25 years with small costs for cleaning and replacing the inverter at some stage.
Why would free Solar Panels Suit me?
- Free solar panels suit households that do not have the cash available for the investment or the ability to get a loan.
- If you are planning to stay in your property for the course of the agreement and can foresee being able to purchase the solar panels during the agreement then this is a good way to start saving on electricity immediately.
Why would owning my own solar panels suit me?
- Paying to install photovoltaic solar panels to your own home is the best option if you can afford the initial investment or are able to get a loan. It is important to work out the interest payments balanced with the likely feed-in tariff income and savings that are estimated for your system to make sure you are happy with the return. Over the 25 years that the feed-in tariff is available for households should be able to see in the region of a 50% return on their investment.
- If you anticipate wanting to sell your property within 25 years (which most people will), then owning the solar panels will make the property a lot more attractive to the new buyers than if they are part of a rent-a-roof scheme.
- In most cases there will be no contracts from buying the solar panels to tie the property to a particular energy supplier, which can be the case with some free solar schemes.
- By owning your own solar panels you are in complete control of any maintenance or servicing so are able to select the supplier that suits you.
Free Solar Panel schemes will suit some properties. The schemes do generate savings in electricity for the households and will help towards the UK's renewable energy target, but for complete control and maximum savings owning your solar panels is the best route to go if it is available to you.
