Earnings & Payback
Typically, our 4kw solar PV system costing £4,300 will generate a guaranteed income for 20 years of approximately £160 per year, plus savings of approximately £378 per year on your electricity bill, plus over £56 per annum for the electricity that you export back to the grid.
Our 4kw Solar PV systems cost circa £4,300 and will typically generate 3,852 units of electricity per annum.
You will receive a guaranteed index linked income for 20 years of approximately £160 per year, plus savings on your electricity bill of approximately £378 per year on your electricity bill, plus over £56 per annum for the electricity that you do not use which you automatically export back to the grid.
£160 + £378 + £56 = £594 x 20 years less the initial cost of your system = £7,580 net profit. This assumes no inflation and no increase in fuel charges.
However the Feed in Tariff is index linked so if we assume inflation at *3.2% and fuel inflation at **6% then the net profit after 20 years can be estimated to be around £16,046.88.
*3.2% inflation is based on as an average over the last ten years from the “Office of National Statistics Consumer Price Indices”. **6% fuel inflation is based on an increase of fuel prices over the last 5 years sourced from “DECC Domestic Energy Price Statistics”.
How important is “inflation linked”
In April 2010 and 2011 and 2012 the Feed in Tariff rate for existing and new participants was increased by 4.8%!
A 4 kilo watt system can generate over 3,852 kilowatt hours of electricity a year – that’s around three quarters of a typical household’s electricity needs which means you should expect to save £378 on electricity alone.
Additionally, you will save over a 1.5 tonnes of carbon dioxide every year.