Solar Panel Loan Cost

[tali1]

Solar panels 4kwh a friend of mine has been offered these on Feed in Tariff Government Scheme.
His roof is not big and the company are saying £11,000 over 15 years at 9.9% interest and projected £45,000 profit over 20 years
It seems expensive and optimistic?

[bednobs]

does it? oh

[tali1]

...errr.....what's......... all......... that........ about bednobs?

[factor-fiction]

I'd ask them to give a detailed breakdown. Seems high to me, and of course it assumes he'll not move

[humbersloop]

£11k's going to cost about £27k to borrow at that rate, so where does the £45k profit come from??

[bednobs]

sorry tali, i was just replying to and (badly) pointing out you hadn't asked a question, but just made a statement

[tali1]

No probs bednobs (i just thought you were in a mood :)
Figures were (£117 per month) =£1400pa = total cost 21k.
45k profit was from the feed in tariff and money saved from less useage over 25 years -in fact those figures were given for system running on only 50% "potential savings"

[bednobs]

its ok if you know you are absoluteky not going to want to move for 25 years

[tali1]

Yeah but i assume any home will have potential greater value increase because of solar panels anyway , but i'm more concerned that panels are overpriced -should be 7k?

[Mosaic]

Tali, my view is when you can buy them at b&Q it'll probably be worth it. At present these strike me as money-making schemes run by fly-by-night companies.
Questions to ask - what if your contractor damages my roof? Let's see your company's latest financial statement. How long have you been in business? How long do you expect to be in business?

[factor-fiction]

So if the cost is £21K and the profit is going to be £45k, this suggests the savings in consumption plus feed in benefit must be £66K. Over 20 years that equates to £3300 a year. I'm no expert but those figures seem extremely optimistic to me, even if the sun were to shine all year round

[factor-fiction]

If he moves within the next 15 years he'll still have to repay the loan even though the benefits will stop.
When it comes to selling I'm not sure that buyers like solar panels - I recall reading that they don't.
I'd have a look at something like the Money Saving Expert site

[tali1]

This is company -they boldly claim "without using a penny of your own money"
http://www.genius-energy.co.uk/

[geno500]

These guys are having a laugh that system now is £7000 tops because the feed in tarriff has been reduced,best you forget them and use somebody else,just how much money you get depends on what part of the country you live,if up North you will get less sun so less money also you need the roof to be in the right direction if only a little off you will get less,a good company will check all that out,the bottom line is people installing these systems charged £11,000 a couple of years ago now with the feed in tarriff reduced they fit the same system for £7000,somebody has made a fortune and some companies are still trying too