Guide prices and sample returns
Solar PV is a fantastic investment. Returns of 10% plus are available over 25 years, inflation linked and dependent only on the sun coming out.
What's more the return is non-taxable for individuals.
But Hurry! Government cuts mean that for installs registered after 1st July:
- The FiT rate will be cut by at least 20%
- The lifetime of the tariff may be reduced from 25 years to 20 years
- The tariff may no longer be linked to inflation
To be sure of getting an installation before 30th June you need to order by 31st May.
If you need planning permission (commercial property, listed building, or flat roof) you will need to order by 30th March due to the extra time this adds to the process.
There will never be a better time to install solar PV than now!
Click here to read more about the Feed-in-Tariff and the current EPC requirement.
Prices / Returns
As a guide solar PV systems cost between £1,500 and £3,000 per kWp of installed capacity depending on system size and complexity. To give an accurate quote we need to take into account factors such as ease of access to the roof, the nature of mounting system / roof covering, the length of cable runs, and shading and monitoring requirements.
For an accurate quote, fill in your name and postcode to request a FREE no obligation site survey.
The table below gives some sample system outputs, based on a south facing system located in not-
too-sunny Reading, Berkshire. A system in Reading is expected to generate 877kWh per kWp (PVGIS
forecast).
See below for an explanation of the three income / savings streams produced by a PV system.
| System size (kWp) | Annual generation (kWhs) | Feed-in Tariff per (kWh) | Total annual savings / payments | Investment rate of return (IRR) | Equivalent pre-tax IRR (individuals taxed at 40%) | Click here for the details |
| 2.12 | 1,854 | £0.21 | £611 | 12.89% | 21.5% | View details |
| 3.06 | 2,679 | £0.21 | £883 | 15.30% | 25.5% | View details |
| 4 | 3,503 | £0.21 | £1,156 | 17.06% | 28.4% | View details |
| 10 | 8,655 | £0.168 | £2,494 | 13.05% | 21.8% | View details |
| 25 | 21,846 | £0.152 | £5,946 | 19.27% | 32.1% | View details |
| 50 | 43,692 | £0.152 | £11,894 | 20.92% | 34.9% | View details |
Please note:
- Annual kWhs is calculated at 877kWhs/kWp, as calculated by the PVGIS calculator for a property in Reading.
- Savings are calculated using 15p/kWh - what you save will depend on what you pay your electricity company for electricity.
- We assume you use 75% of your electricity in your property - this is quite possible using careful energy management (which can be automated).
- For the purposes of payback period calculation we are assuming a 6% annual rise in electricity prices and a 3% RPI inflation rate.
- We assume panel degradation of 1% per year. You can reduce this by using the Azur panels. See our panel table for more information.
The three income / savings streams produced by a PV system:
The Feed-in Tariff (an income)
- Earn up to 21p per kWh for the next 25 years, just for generating electricity. Tax free for individuals.
- The Feed-In Tariff is paid quarterly, against the metered output of the system. The amount paid per kWh depends on the system size. Click here for more information about Feed-in Tariffs.
- The tariff is payable for 25 years from the date on which the system is commissioned.
- The rate per kWh is index linked and will go up each year in line with inflation (specifically the Retail Price Index). The rate of inflation was 4.8% between April 2010 and March 2011. Thus the tariff for systems installed prior to March 2011 went up by 4.8% in April 2011.
Free electricity (an avoided cost)
- Use the energy you generate for FREE.
- Every unit you use is one less you have to buy. The average peak electricity cost is currently 15p per unit.
- A typical user will use between 50% and 75% of what they generate. There are automated devices to maximise energy usage.
Export tariff (an income)
- Note that most systems don’t include batteries. So if the electricity generated is not used instantaneously, it gets exported back to the grid for someone else to use.
- The system owner will be paid an additional tariff of 3.1p per kWh for this.
- The Export Tariff is also linked to inflation.
Worked example
- Use the energy you generate for FREE.
- Every unit you use is one less you have to buy. The average peak electricity cost is currently 15p per unit.
- A typical user will use between 50% and 75% of what they generate. There are automated devices to maximise energy usage.
Export tariff (an income)
- Note that most systems don’t include batteries. So if the electricity generated is not used instantaneously, it gets exported back to the grid for someone else to use.
- The system owner will be paid an additional tariff of 3.1p per kWh for this.
- The Export Tariff is also linked to inflation.
Worked example
A 4kWp system costs £11,000 and is expected to produce 3508 kWhs per annum. The user has an energy management device to maximise energy usage. 75% of the electricity is used, and 25% is exported.
(1) Feed-in Tariff
3508kWh x 21p per kWh = £736.68
(2) FREE electricity (75% gets used)
3508kWh x 75% x 15p per kWh = £394.65
(3) Export Tariff (25% gets exported)
3508kWh x 25% x 3.1p per kWh = £27.19