HOUSING ASSOCIATIONS/PUBLIC HOUSING

The government is keen to maximise the amount of energy generated by not for profit organizations from their own properties and to ensure that they benefit from free electricity.

Most people and organizations like to “do the right thing” by the environment but if this can be coupled with direct financial benefits so much the better. The house owner can install panels and benefit from government-backed Feed in Tariffs (FITs) for 25 years and the resident gets free electricity for the life of the system, which is estimated at 40 years.

There are basically three ways to finance solar panel installations at a 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:-

Pay outright from your own funds.
The cheapest option if you have the sum available is to pay the full amount of the installation. The financial return by the (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 your tenant will receive free electricity for the lifetime of the panels. Grants are sometimes available from energy providers and local and central government. These are very popular and should be applied for as soon as they become available. FTD can help you with this option and can assist with finance.

Lease your roof to an investor (Hosting)
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 say 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.