Solar Panel Installation Government Schemes

Many people are now opting to have solar panels installed on their roofs in order to generate their own electricity or heat, depending on the type of solar panels they are opting for. This is a great idea as these people are actively contributing towards reducing their carbon footprint and being much less dependent on fossil fuels, which are quickly running out.

What Solar Panel Installation Government Schemes are Available?

Currently, there are two main solar panel installation government schemes available. They are:

The Renewable Heat Premium Payment – this solar panel installation government scheme means you will receive a voucher towards the costs of your installation, usually around 10% of the cost, once you have had it installed.
The Feed in Tariff – this scheme is guaranteed for 25 years and means that you will be paid not only for generating your own electricity but also for feeding surplus energy back to the grid. The Feed in Tariff is index linked meaning the actual prices you receive for the energy you produce will vary. This is only available for solar photovoltaic, whereby you produce electricity. Solar thermal only produces heat and is completely used within your home.

These solar panel installation government schemes make having solar panels installed very interesting since it means that the payback period for installing solar panels is reasonably short and you will be able to even make a profit from them once you have earned your original investment back. The average yearly financial gain of installing solar panels is around £1,000 thanks to the solar panel installation government schemes, meaning that the payback period is around 10 years.

What are the Consequences of Solar Panel Installation Government Schemes?

The consequences of solar panel installation government schemes is that many organisations now offer free solar panel installation, with the agreement that the feed in tariff will go to the company that has installed your panels. As the solar panel installation government schemes of feed in tariffs are guaranteed for 25 years, the companies that install the panels will want you to enter an agreement with them for 25 years.

The advantages of this type of scheme are clear: you receive free solar panels and you have a serious reduction in your energy bills.

The disadvantages, however, can often be overlooked. Firstly, as the installation company will want to make full use of the solar panel installation government schemes, they will want you to enter a 25 year agreement. This could potentially have serious consequences for yourself, as you may be trying to sell your home at some point, and the potential buyers either do not want solar energy or do not want the solar panel installation government schemes of the feed in tariff to go to the installation company.

Lastly, since the solar panel installation government schemes allow companies to offer solar panels for free, this has left the door open for many so called “cowboy builders”, who claim to be solar panel installers but in fact are not competent at their work. This is why it is important that you ensure the company you work with are who they say they are, whether or not you are paying for the installation yourself.