Return on Investment

what makes SOLAR PV such a good investment opportunity?

With low interest rates here for the foreseeable future more and more people are realising that PV makes good common sense as an investment, The guardian caption sums up perfectly the benefits of investing in a photovoltaic system and where else at the moment can you guarantee such a return on your investment. GUARANTEED being the operative, word because that's what it is, for 25 years!

THATS NOT ALL !

Not only are you generating a very good return on your capital, but you are protecting yourself against the inevitable energy price increases that almost certainly will prevail in the years to come. If you look at the tables below, you will see that between 1974 and 1999 energy prices increased by a staggering 630 per cent and of even more concern were the increases of epic proportions from the turn of the millennium.

FEEL GOOD FACTOR

Its one thing making money and in the case of larger scale systems quite significant money. However, when you are doing your bit for the environment at the same time it makes the whole PV experience all the more rewarding.

Solar PV is a bombproof investment. Over the next few years it will become mainstream in the United Kingdom,  as it has done in Germany, France and across the whole of europe. Tariffs are set to be lowered after the first batch of lucky recipients have banked the higher rates, so there has never been a better time to invest.

Even by taking out a remortgage or home improvement loan  you can still gain a fantastic return on your capital. Please see how much you could be potentially earning on your investment by visiting the feed in tariff section of this site, or why not give one of the Salop Energy team a call today - 01743 236 266.

Have a look below at some of the interesting news from the last few months that supports the reasoning to choose solar power for a sustainable future of green energy.

thisismoney.co.uk 7th June 2010

Rates outlook
The bank rate was left unchanged again at 0.50% at the May meeting, the 14th month in a row.

So when will rates rise?
The Bank confirmed in its quarterly inflation report (12 May) that it expects inflation to remain below the 2% target in two years time, eroding chances of a rate rise.

Despite receding rate rise fears, the OECD has recommended the UK raise rates 'no later than the last quarter of 2010', and to 3.5% by the end of 2011 (26 May). Nevertheless, rates are almost certain to remain on hold at this week's meeting [read a preview - 6 June].

Market expectations of rate rises
A recent Reuters poll demonstrates how rate rise fears have evaporated - a result of renewed expectations that the European debt crisis will lead to a double-dip recession for the world economy.

Only 30% of economists expect a rate hike by year-end, well down from 55% forecast in the previous month's poll (2 June).
Median forecasts from the poll suggest the bank rate would be raised in the first quarter of next year (Jan to March 2011) to 0.75%, then to 1.0% by June and would finish the year at 2.0%.
Prior to recent events, markets had begun to price in a greater chance of rate rises in 2010 because of higher-than-expected British inflation. But as we've repeatedly argued on this round-up, deflation rather than inflation is the greater long-term threat. 

The Guardian - 6th February 2010

"If the government offered to pay you £1,000 a year for the next 25 years, in return for an up-front investment of £12,500, you'd snap it up in a second. Well, that's pretty much the deal on offer this week after the government finally revealed what it will pay those who install electricity generating solar panels."

The new statesman - 19th may 2010

UK interest rates kept at record low

The Bank of England has decided to keep interest rates at their record low of 0.5 per cent, the BBC reports. They have been at this level since March 2009, and analysts do not expect any rate rises soon as the economy continues to recover.

Cameron & Clegg Committed to Carbon Reduction

With David Cameron and Nick Clegg both determined to push on with the UK's commitment to carbon reduction. The clean energy cash back scheme for solar photovoltaic systems has indeed passed the GUARANTEED for 25 years test thus far with flying colours.

Launched on the 1st of April 2010 the scheme is a rare positive hallmark from the doom and gloom of the ousted Labour government and offers some respite for those investors trying to find a gilt edged opportunity for investment in a world full of turbulent stock markets and poor performing trust funds.

Indeed the Sunday Times has put solar PV panels as one of its top five investments for making 10% returns on your savings. In the article it advised customers to consider PV following the introduction of the clean energy cash back scheme or (solar feed-in tariffs) in April, offering them a tax-free, index linked income for the energy they produce. The new coalition Government has agreed to honour the feed-in tariff system for electricity.

"Given that the income is tax-free, the return on a £14,000 investment is equivalent to 12.9% for a 50% tax payer and 10.3% for a 40% tax-payer, with the investment recouped in as little as seven years. As the payments are linked to RPI, this equates to a real return of 18.2% and 15.6% respectively at today's RPI rate of 5.3%" reports The Sunday Times.