For a while the enthusiasm over solar energy dwindled. Green initiatives seemed to concentrate on wind power, insulation and recycling. Although three years ago the FiTs scheme ensured those who installed solar would receive a healthy return on their investment, recently this fact has been underplayed and solar has taken a back seat.
Now however, one minister has put solar power directly back in the spotlight. One minister has advised homeowners to snap up solar panels claiming they could provide better investment opportunities than a pension.
Feed in Tariffs Pay Dividends
The FiTs scheme means that owners receive payments for the energy they don’t use. This energy is fed into the national grid and paid for at a price per unit. Although the initial outlay on solar panels is considered expensive, the reduction in bills along with the feed in tariff rewards mean the return could outweigh the money gained from some pensions.
There was a cut to the price paid for the excess energy in 2012, a move that put many off the investment. Now though the government want to encourage people to turn to solar energy and so are offering a guarantee on the sale price.
Cost of Solar Panels drops by 70pc
It’s also worth noting that alongside the guarantee solar panels don’t cost as much as they used to. In 2010 a typical installation could cost over £10,000 whereas now the cost is expected to be under £5000.
The minister, Mr Barker, said that this delivers a return that’s between 5 and 8%. Comparing it to annuity pensions at 6%, it obviously offers a better deal in many cases.
The reputation of renewable energy sources has declined recently as it was revealed that the cost of maintaining wind farms outweighed the energy produced but now the government are urging homeowners and businesses to consider the benefits of renewable energy.
At the time of writing over half a million solar installations had taken place in the UK and the minister hopes this will rise dramatically over the next few years.