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Investing In Solar PV
To supply, fully install and commission a solar photovoltaic system requires an initial investment of at least £7,500 including VAT.  Solar panels qualify for a lower rate of VAT under the HMRC directive for energy saving materials.
For an investment of this size you would be able to purchase a system of around 1.5 KWp comprising of around 8 solar panels covering an area of approx 10m2
A good guide line on how much a system will cost is to allow approximately  £2,000 per KWp plus  £1,500
On a sliding scale you will see that a larger investment will result in better overall value for money.

How long will it take to repay my investment ?
For an average solar pv system similar in size to the example shown above you would expect to return the investment in just over 11 years however, the length of time for an investment to payback can only be accurately determined on a case by case basis. It is also determined by the cost of the energy that you are replacing which is rising significantly year on year. Since June 2010 energy bills have increased by a further 5% on average.

Feed-In Tariffs Investment Guarantee

The rate you are paid is guaranteed for 20 years, allowing long term planning of your investment. Your investment should return 8-11% tax free.

The feed-in tariff is index linked meaning your investment doesn’t suffer if inflation runs out of control during the economic recovery.

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