Supra-Brett Posted March 23, 2011 Share Posted March 23, 2011 Anyone know much about these deals? Ive heard that energy companies now offer free solar panels and installation with no real catches to mention. Basically they pay for the panels and install them, you get free energy (while its sunny) which will likley cover some but not all of your electricity bills, and the energy company who installs them collects the feed in tarrif from the government. Simple as that as far as im aware. Ive completed an initial surevy and am eligable so am now awaiting a call. Anyone know more than me ? is there a catch? Link below http://www.ecovisionenergy.com/content/ Quote Link to comment Share on other sites More sharing options...
kjgreen3 Posted March 23, 2011 Share Posted March 23, 2011 Yes the catch is they sell the units generated at 4x the normal unit cost, say its 10p per unit. Green energy (solar panel/wind generated electricity) then would be sold to the energy provider for 40p per unit. You would be best off forking out the install costs yourself and then after 5-6 years the energy sold back would have paid off the cost of the installation. One of my recent new build jobs had it installed and same terms as you have linked, he decided the way prices on energy have skyrocketed its worth paying 6-10k to get it intalled as even if unit rates go up to a £10 a unit you still sell it back at £40 per unit, doesn't matter if you use the energy or not! Remember they generate ~7-16 hours a day (depending on time of year) as long as there is light. Said client got told a value of £1500 of electricity on average (at current unit rates) per year would be sold back to the provider (that was for 6 PV panels) and would pay for itself in 6 years. Quote Link to comment Share on other sites More sharing options...
Aero-M Posted March 23, 2011 Share Posted March 23, 2011 We have thought hard about this, Had some details come through the post. we can't seem to find any catches, It would appear that the company makes enough money from selling the surplas energy to cover the costs of installing the panels, then carry on making money from them whilst you get "free energy". Quote Link to comment Share on other sites More sharing options...
The Raven Posted March 23, 2011 Share Posted March 23, 2011 Yup sure is, they want a certain number of panels per house or they wont do it by the sound of it they have oked yours. They willl own the panels and the lease on your roof for 25 years. They will be making 1k+ a year on your house. Also its a real pain if you try to sell the house The new green deal out next year will allow you to own the panels and pay back as you feed back, after which you will get the profit. Payback takes 6 years, after which you will get around a grand a year. Its not a awful idea, just not a great one when a better option is just around the corner. Quote Link to comment Share on other sites More sharing options...
Supra-Brett Posted March 23, 2011 Author Share Posted March 23, 2011 Thanks guys 1) Cant afford to buy/install myself or i would do. 2) That leaves 2 options a) Dont install at all and stay as is b) Get them to install it for free. I still have some questions though 1) If they sell back all the electricty they generate then how can the homeowner get free electricity? or do they just sell the surplus? 2) Why is it hard to sell the house afterwards? surely its simple enough to transfer the lease of the roof across to the new owner who will also benefit from free electricity? Quote Link to comment Share on other sites More sharing options...
ozz Posted March 23, 2011 Share Posted March 23, 2011 have a search on money saving expert, quite a few threads on this pointing out pro's and con's. There is a similar scheme for wind power. One of the downsides is saleability of the property as the contract is such a long term - not everyone wants them on their roof so you could limit market. I think the best payback is from borrowing the money to finance up front but if you don't want a loan and you just want to save some money it can be a good option. Quote Link to comment Share on other sites More sharing options...
kjgreen3 Posted March 23, 2011 Share Posted March 23, 2011 Thanks guys 1) Cant afford to buy/install myself or i would do. 2) That leaves 2 options a) Dont install at all and stay as is b) Get them to install it for free. I still have some questions though 1) If they sell back all the electricty they generate then how can the homeowner get free electricity? or do they just sell the surplus? 2) Why is it hard to sell the house afterwards? surely its simple enough to transfer the lease of the roof across to the new owner who will also benefit from free electricity? I can answer point one. All energy generated whether used by you or sent into the grid is charged at 4x unit rate as its green. Doesn't matter if you use it all and some from the grid or it all goes to the grid, Whatever is generated they have to pay you (or the company who is effectively leasing you the panels for 25 years) for all units generated. So effectively whatever is generated is charged at 4x rate and whatever you use you pay 1x rate. That is why so many companies are jumping on the install free and free electricity for the leaseholder but let have the surplus (there is no surplus its whatever is generated is charged!) As stated after 5-6 years they start to make a profit of around 1k- 1.5k a year that's what makes it so lucrutive, unfortunately for the average homeowner its a large amount to pay out if doing it themselves. Quote Link to comment Share on other sites More sharing options...
Supra-Brett Posted March 23, 2011 Author Share Posted March 23, 2011 I can answer point one. As stated after 5-6 years they start to make a profit of around 1k- 1.5k a year that's what makes it so lucrutive, unfortunately for the average homeowner its a large amount to pay out if doing it themselves. Thanks Whats to say the 4 x offer will still be available in 5 or 6 years never mind 20 years. Surely the government could easily change the rules, and you/electricity company would be worse off? Quote Link to comment Share on other sites More sharing options...
The Raven Posted March 24, 2011 Share Posted March 24, 2011 Thanks guys 1) Cant afford to buy/install myself or i would do. 2) That leaves 2 options a) Dont install at all and stay as is b) Get them to install it for free. I still have some questions though 1) If they sell back all the electricty they generate then how can the homeowner get free electricity? or do they just sell the surplus? 2) Why is it hard to sell the house afterwards? surely its simple enough to transfer the lease of the roof across to the new owner who will also benefit from free electricity? 1. Green deal means you dont have to pay, nor install it. You in affect get a loan from your engery provider. The company put it in, Then you pay back the loan as you feedback in. IE the panels cost 7k to install, the loan covers that. You should put about 1k worth back into the grid a year after your useage. So after the first year the loan drops to 6k and so on until such time as the the loan is repayed. After which time anything you feedback in comes to you as payment. The goverment is forcing B/G EON NPower ect to do this as part of the CO2 reduction tagets along with cheap or free cavity wall ect. 2. The sale of the house might become a bit easyier as time goes on but at the momment its not, as you are selling something that isnt yours, and have to seek permission to do so, and the new owners have to agree to all the same terms as you. Your roof isnt part of your house anymore it more or less belongs to the company that leased it. As i said as time goes on it might get a bit better. As i said its not an awful idea but not the best one when a better way is about a year off. Quote Link to comment Share on other sites More sharing options...
Ark Posted March 24, 2011 Share Posted March 24, 2011 1) If they sell back all the electricty they generate then how can the homeowner get free electricity? or do they just sell the surplus? What they do is replace your standard electricity meter with one that effectively runs forwards when you draw power off the grid, and backwards when you push energy to the grid. So during a sunny day when you're creating lots of delicious electricity you'll probably be generating more than consuming, so the meter goes backwards, but only by the difference between what you generate and what you consume. Quote Link to comment Share on other sites More sharing options...
Supra-Brett Posted March 24, 2011 Author Share Posted March 24, 2011 thanks guys thats fab. Think i will wait for this green deal thingy. When does it come out? Quote Link to comment Share on other sites More sharing options...
The Raven Posted March 25, 2011 Share Posted March 25, 2011 Green deal comes in next year. From what i understand it will be the death of these free solar money robbers. In the meantime I trust your house is up to spec with its cavity wall and loft? You know you can claim huge grants for them? Quote Link to comment Share on other sites More sharing options...
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