Experts Say Free Solar Panels Are Not A Great Bargain After All

According to industry experts, the majority of free solar panel offers being promoted to households are not quite the financial bargain that a lot of people think that they are. Consumer rights groups are now warning homeowners to pay close attention to what they are really getting themselves into.

By looking at figures from the Energy Saving Trust, people can see that consumers could save as much as £10,500 over 25 years, depending on where in the UK they live, by taking out a loan and doing their own solar system. Even in the UK’s sunniest region, the maximum consumers could save is about £412 a year from their electricity bill. This is being compared to the £1,313 that free solar panel companies, such as British Gas and Isis Solar will collect from the feed-in tariffs that the government is offering as incentives to get people to build renewable energy sources.

Which? says that consumers would be a lot better off if they pay to install their own systems and keep the very lucrative Feed in Tariffs income. Reports show that homeowners can actually save thousands of pounds by buying their own panels rather than renting their roofs out.

Most companies that Which? spoke to value their free systems at around £19,000. Thus, the initial cost of installing the panels can be off-putting. The best rated loans start at about 7.8 percent over five years. Despite all of this, even with a higher interest loan, homeowners are still likely to come out cheaper to buy and install their own solar panels. People are told to use the Energy Saving Trust’s online Cash Back Calculator to see how much money they can actually save.