There are now a growing number of incentives to use solar power and by doing so you will be minimising the impact you have on the environment
. But is relying on this source of energy entirely cost effective and, given the current financial climate, is it worth investing a large sum of money on such an installation?
In a bid to increase the number of people using solar energy the Department for Energy and Climate Change is implementing the Renewable Heat Incentives (RHI) scheme from April next year. This will be applicable to any public or private individuals or business in England, Scotland and Wales.
As an incentive you will be paid a maximum of 18p per kilowatt hour (kWh) for the energy generated by the solar equipment you own. German style feed-in tariffs have been brought in from April this year for home owners, with these a family could receive up to 41p/kWh for some installations.
In Alistair Darling's final budget it was announced that the levies would be free from Income Tax which the Treasury claims would save basic rate paying homes 180 a year. An average family could earn a reward of up to 900 while also saving 140 in bills over the course of a standard year involved in the scheme.
The cost of solar equipment is a negative aspect though and some installations can run up to 10,000. But the price to buy and install the panels will fall over time, making them more readily available in the future, even though other non renewable options are currently cheaper. With the new government initiative the length of time it takes to earn back the initial cost should drop from 14 years by a quarter. For anyone intending to stay in their property in the long term this makes investing in solar power a very attractive option.