GREEN ENERGY FINANCE

Finance is often key to the decision making process. Most people like to “do the right thing” by the environment but if this can be coupled with direct financial benefits so much the better.

There are basically three ways to finance a solar panel installation on your own property: -
• Pay outright from your own funds.
• Lease your roof to an investor.
• Take out a loan to cover the costs.

There are benefits whichever way you choose – as with any financial decision you must always take care and ensure you understand all the terms and conditions.

Pay outright from your own funds.
The cheapest option, if you have the sum available, is to pay the full amount of the installation. In the current market the dual forces of inflation and low interest rate returns, mitigate the value of investments in banking institutions. The financial return by the Feed in Tariff (FIT) is tax-free and Retail Price Index (RPI) linked for the full term of the period – 25 years. This means the value of the FIT will rise with inflation. The optimum period for the system to be paid for is 7 – 10 years, so this means that you will continue to receive the FIT payment for the remaining part of the 25 year agreement and free electricity for the lifetime of the panels.

Lease your roof to an investor.
Investors will install a PV installation on your roof without cost to you, they will retain the rights to the FIT payments and you will receive free electricity. Obviously should electricity costs increase your benefit in real terms increases. FTD can help you with this option and can assist with finance.

Take out a loan to cover the costs.
The key to making this method work effectively is to use the FIT as a contributor to your loan repayments. By planning to pay back the loan over, say 10 years – even if the sum repayable is slightly more than the FIT return you receive – this will give you approximately 15 years of FIT and free electricity for the lifetime of the panel. FTD can help with this option and can assist with finance.

For more information or to get a quotation please telephone us
on 0207 700 6277 we are always happy to help with any
enquiries, you can also e-mail us at info@ftd-ltd.co.uk
or you can fill in our contact form.