Solar power is here and should be free to every household. True it’s new for Britain on a domestic basis but we cannot believe that we are leaders in some Solar revolution. Take a look at Germany say; some eleven years of government-backed support for household solar panels cambridgeshire installations with thousands of takers and still rising even though the regularly reduced tariffs over the years. That’s what tells us apart – the German authorities have thought about it, looked at it’s objectives and adjusted its finances in line with that. The UK government didn’t. Actually it has just been deemed to have been unlawful with its unforeseen change to the Feed-In-Tariff payment from 43.3p to only 21 pence.

Not allowed to appeal the decision, imminently we will discover what they are proposing to do. Nerves are jangling in the solar panels business due to the uncertainty and the public, have been forced to reconsider before making the choice to go ahead with solar panels. However should we actually reconsider? Solar panel prices have indeed come down as it was said they would, as has the cost of inverters that convert the current generated on the roof into energy suitable for domestic use. So, even though the support is being halved, are the effects actually as bad as the press has suggested?

12 months back a family in a south-facing home with a appropriate roof could expect to see a fifteen percent annual return on their investment – and it was tax free. that is an expenditure of around £12000 to get back a profit of forty-five thousand pounds over the twenty-five year life of the FIT. Only some very wise investment experts, probably with some secret information could have proposed anything as profitable and assured as that.

But how do the proposed Feed-In-Tariff numbers of 21p add up? A similar solar panels buckinhgamshire system could now cost in the region of nine-and-a-half thousand pounds, will generate the same amount of power, last equally as long and still be supported by the UK government for 25 years at the revised rate. This means that your nine-and-a-half thousand pounds will still bring in about thirty-six thousand pounds. That means a profit of £26500 over the 25 years of the Feed-In-Tariff, or an eleven percent ROI – tax free.