Here we will update the progress of our Solar Panel investment. We installed a 3.9Kw system in November 2011.
APRIL 2019 TO AUGUST 2019
The system has now fully repaid the capital investment and is returning pure profit now.
During April the inverter failed on the system. This was replaced under warranty and the remainder of the warranty transferred to the replacement.
OCTOBER 2019 TO MARCH 2019
May 2019 FIT Payment should see our investment returned in full. The return time will be 7.5 Years. This is less than the predicted timing of between 8.5 and 9 years suggested by earlier generation figures.
The system is supported by FIT payments for a further 17.5 years. At the current rate this would generate a maximum of £28,900. The actual Return On Investment will be approximately 13% Per Annum.
It is recognised that the panels will begin to deteriorate from around the age of 15 years and a further capital cost may be incurred to replace the panels, however the cost of panels and their efficiency have improved dramatically since we installed the system. It is also recognised that the inverter could require replacement over the coming years. Where this cost reduces income by £10,000 the overall return remains excellent at 10% Per Annum.
JUNE 2017 TO SEPTEMBER 2017
As an all electric home, the returns from solar have covered the entire energy costs since installation. While the outlay is not yet fully returned, it is scheduled to be so within the next 18 months. Once the initial investment is returned the ‘real’ return rate can be calculated accurately, although estimations at this point set the returns at around 13.50% annually for at least 10 more years. At this stage the true ROI is -21.14% after 5.9 years.
Many comment that this investment is subsidised falsely by government and consumers by the incentives on the feed-in tariff that was secured at the time of investment. When measured against investments in the stock markets over the years this has been a very successful investment. All types of investment carry risk and in this instance having funds available to secure the highest tariff guaranteed for 25 years was extremely fortunate. While there is a level of support there is also clear logic that to help combat ever increasing energy costs an investment in solar has successfully helped defend against the rising prices. The only other alternative to off-set energy price rises is to invest directly into the energy sector and target that largest dividend payers, thereby reducing your energy bills from the dividends received. There is more risk involved with this and your capital is also not only at risk but is also tied up for many years.
Looking into the future at the point the efficiency of generation begins to diminish, a review of the panels will be required and a likely further capital investment will be required to replace the 16 panels, although at that stage the efficiency and cost of panels will be much reduced.
MARCH 2015 TO JUNE 2017
Projections provided with the original installation quotation are largely being met and we are on track for a payback period of 7.63 years, an improvement over the previous period report but on track with original estimations.
Monitoring the monthly generation gives an interesting view into the weather patterns in the area and might be a useful graph to produce for this page
AUGUST 2014 TO MARCH 2015
The generator has been changing systems during this last period which has delayed the latest figures by 6 months. The expectation is that we are on track, looking at a return period of 8.8 years in total.
Annual generation is on track in year three to match previous years totals. Investment return in real money annually = 11.1% . Return on investment estimate 7.8 years. Installed years = 3.4 years. Cumulative real money return = £4847.00
DECEMBER 2013 TO AUGUST 2014
Annual generation is on track in year three to match previous years totals.
Investment return in real money annually = 12.54% . Return on investment estimate 7.8 years. Installed years = 2.8 years.
Cumulative real money return = £4467.00
DECEMBER 2012 TO DECEMBER 2013
Investment return in real money =11.48% or £1605.00. Return on investment estimate 8.6 years. Installed years = 2.2 years.
Cumulative real money return = £3240.00
SEPTEMBER TO DECEMBER 2012
Investment return in real money = 13.3% or £1696.00. Return on investment estimate 8.6 years at this point.
MAY TO SEPTEMBER 2012
Generation good, investment return in real money = 10.7% or £1360.00
Updated return on investment = 8.07 years
APRIL MAY 2012
Generation has increased again. Updated return on investment time = 9.6 years. Return on investment interest = 6.14%
MAR 2012 Solar is soaring this month, at the time of writing on 28th March, 299 units had been generated and the quarterly payment is estimated to be £220 at least. This shows that the system is on track for at least £1000 per year return. The savings on electricity bills is also stacking up with approximately 10 units per day being credited to the system, by July we will have a clearer indication of just how much savings have been made financially. Charts have been updated below.
FEB 2012 generation up at approx 5 units per day so far, will outstrip January easily. Installation photo added below.
The total generation in FEB 2012 was around 120 units, and March is already setting high bars. Today (7th) we generated 15.2 units.
GENERATION STATISTICS @ 31 December 2012 – Install Date October 2011
The completed installation. 18 panels 3.9Kw output.