investing in renewable energy
Historically, renewable energy was perceived as an expensive luxury. However, with the details of the Feed in Tariff (for electricity generation)now confirmed, and the proposals of the Renewable Heat Incentive due in 2011, put out to consultation, there is no better time to invest in renewable energy.
It has become such a lucrative proposition, the large private investment funds are now looking to invest in renewable energy!
A FIT example:
A typical 2.5KWp solar PV panel system generating 2000kwh/annum, would receive £826 in the first year through the FIT payment scheme. This is payable for 25 years, and is index linked, so will go up by the rate of inflation each year, and tax free for domestic users.
This doesn’t include any additional savings made from either using your own generated electricity, or payments from export. This could equate to a further £200, and this would be linked to fuel price increases.
Cost for installation would be around £13k.
This equates to a return on your investment of over 8% PA.
On a larger installation of over 200m2, the year 1 savings could be in excess of £10k!
A wind turbine, in an ideal site would see much greater returns, as much as 30% in the UK.
A RHI example:
A typical solar thermal (hot water) system generating around 2000kwh/annum would recieve £360 in the first year through the RHI payment scheme. This is payable for 20 years, and also indexed linked.
In addition, further savings will be made which dependent upon current fuel source and amount of hot water used. This could be in excess of £150, and would be linked to fuel price increases.
Cost for installation would be around £4.5k.
What are the benefits?
- Bank interest rates < 1%.
- Solar panel/wind turbine ROI 7% – 30% PA.
- Value added to your property.
- Reduces your carbon footprint.
- Differentiates you from your competitors, giving you great PR.
- Helps meet corporate social responsibility needs.
- Helps meet your Carbon Reduction Commitment (CRC).
- Helps to create an environmental brand name.
Contact Viridis Energie Consultants today on 0845 437 4484 or info@viridisec.co.uk
for independent, impartial advice on your renewable energy project.
