8+% Solar PV Energy Investment Returns Despite FIT Cuts

Changes in solar PV energy Feed-in-Tariff have come as no great surprise to the Directors of Salop Energy Commercial. “It’s been clear to us for some time that the current regime is not economically sustainable, so today’s re-balancing exercise comes as no great surprise.�? said Director Gareth Jehu. "We’ve been out to Germany twice in the last month to fine tune our business plans in anticipation of a major change. The fact is that we as a company will continue to provide our solar PV customers with an 8% or better investment return plus a carbon reduction green dividend too."

Following its research in Germany the company has put together a range of premium brand solar PV systems for homeowners. These will retail at below £10,000 generating enough energy to provide investors, with a suitable site, a c.8% annual return.

Example offering a c. 10% Return:

An average residential customer installing a roof mounted Salop Energy Commercial Premium Brand Solar PV System on their home can expect to receive an annual FIT income of around £750 and trim £200 off their commercial electricity bill worth in total £950. Payments are tax free for most UK taxpayers and will be revised upwards annually on April 1 for any gain in the Retail Price Index.

The cost of the system fully installed, including an allowance for scaffolding fees and Vat at 5%, will be under £9,499. This price excludes any roof strengthening or repair work commissioned. An entry point 2kW system is expected to be priced below £6,500.

This is despite the Generation Payment element of the Tariff more than halving to 21 pence per kWh generated from December 8.

Gareth Jehu explains, “All new technology markets evolve in the same way with the early adopters gaining the best returns because they took higher risks as pioneers. As solar hardware prices soften, so the cost of market entry falls broadening the potential customer base. Yes, things have happened very quickly, but we plan six months ahead taking account of dramatic scenarios such as ’What if the Tariff was cut by 50%’�??. Consequently we’re a business with a plan to carry us forwards.

In addition to installing Solar PV systems the company plans to add a spectrum of other energy related services to be announced in the New Year. It also expects that short term market gyrations will most likely kill off weaker businesses.

The Company plans to showcase its range of premium brand solar PV systems from December at its dedicated solar showrooms and education centre in Shrewsbury.

"It’s definitely business as usual from us�?, said Jehu, “we’re already putting quotes together and plan to install throughout the winter."