Why should you use a Solar PV Consultant?
I’ve written about this a couple of times before – Solar Panel Brokerage and Would You Benefit From Independent Advice. But, in the “good old days” of double digit ROI, some people didn’t feel the need?
However, with the recent proposed changes to the FIT (whilst we can all hope that the Government will make a U-Turn? It is highly unlikely?), using an independent consultant/broker is ever more important.
Many people will now think that the reduction in the Feed In Tariff payment of over 50%, now makes it financially un-viable? But, you could be wrong?
If you believe our Government (who does these days?) who are now suggesting a 4.5% – 5% ROI, and that is not attractive enough for you? Then you’d be right? But, (and don’t tell them this??!!) they are wrong!
Whilst, for most domestic installations, you are unlikely to get a double digit ROI, you should be getting between 7% and 10%? For commercial installations, you could quite easily get over 10%?
Here’s how/why:
As we now, the price of panels has come down significantly over the last few months, and the price will continue to drop (although perhaps not at the rate we’ve seen?). In fact, many suppliers have already “published” their post 12/12 price list, and it is lower.
Similarly, installers have spent a lot of time and money to set their businesses up, and won’t go down without a fight!? They too will “sharpen their pencils”.
We will also see an increase of “lesser known” (lower priced) panels being used?
Their are literally hundreds of MCS* accredited panels available. But currently, around 80% of installations are, probably, using 20% of the available panels? Many of these are probably manufactured by “household” names. and as a consequence, probably, carry a premium in price?
It may be true that they may be better built? They may (although not always?) offer greater output? But, they could be twice the price? And in reality, they don’t offer twice the value for money though? Remember, not all 240wp panels will deliver the same output.
But, how would the consumer know?? In the main, they won’t. Without the necessary skill set or software, there is little/no way for the consumer to know if they are getting value for money.
Currently, all installers have to use SAP for their calculations to give to their clients. It is well known that SAP is highly inadequate for this purpose, and cannot differentiate between different components .
Some installers will also use other software to show additional calculations? Some won’t? And they may all use different software?(there are many out there). This can all be very confusing for the consumer?
The only way to really tell, is to evaluate each system using the same parameters/software.
So, to answer the original question “how to get a better ROI”, you need to consider the following:
1). Shop around.
2). Don’t be fooled by “household names”.
3). An d perhaps more importantly, use an independent consultant/broker to help you.
To give you some examples of recently tendered projects, which I’ve based on the new FIT rates, BUT using pre 12/12 prices (remember, post 12/12 prices will be lower):
1). 2.47kwp (using “household” name) – Year one ROI = 7%
2). 4kwp – Year one ROI = 9.7%
3). 10kwp – Year one ROI = 11.5%
4). 1.5kwp (using “top of the range” product) – Year one ROI = 6.7%
As you can see, these figures are much more attractive than the Government suggest? Don’t forget this is tax free (domestic) and index linked.
We have a number of services which we can offer. If you wish to discuss your project, then please contact Viridis on 0845 437 4484, or email info@viridisec.co.uk
* MCS accreditation (whilst not necessarily a guarantee) is a “quality assurance” scheme, where every panel has to meet a minimum of standard. Some panels will offer slightly levels of quality/performance, but it may not be worth the extra cost?