Free solar panels?

[JohnRoss]

Has anybody else been contacted by a firm who offer to install solar panels with a mention that the electricity produced during the first 10 years is used to pay off the cost of the installation and that after 10 years you get to keep the money made by selling the electricity produced to the electricity supply company. The question that comes to mind is what is the situation if you want to move before the 10 years is up and the contract is still in force. Have there not been problems in the U.K. in connection with such deals? Their web site predicts a return of between 1000 and 4600 euros a year depending on the number of panels installed. I think other considerations must be related to insurance and structural considerations as these panels are quite large and all that factor implies.............................JR  

[Quillan]

This type of thing was discussed some months back ( July 2011 ) HERE (link to thread). I think that they are probably talking about quite big installations as even RICS has been forced to recalculate their figures on 'pay back' time which they now claim to be between 50 and 100 years. Below is some text from one of the posts with some interesting links.

According to RICS it can take between 50 to 100 years to get your money back and are regarded as the least most efficient way of generating electricity which may explain why governments do not make them compulsory on new builds. Typically they only generate around 50% of your power needs in an average family home. I found the following article which you may find interesting. They have a life expectancy of around 30 years and their performance drops off after ten years to about 80% and by 50% after 20 years. http://www.independent.co.uk/environment/climate-change/solar-panels-take-100-years-to-pay-back-installation-costs-917202.html You may also find the following two documents from RICS interesting. http://www.rics.org/site/download_feed.aspx?fileID=1867&fileExtension=PDF http://www.rics.org/site/download_feed.aspx?fileID=8091&fileExtension=PDF (start from page 8) Until there is a massive leap in the technology and a drastic drop in the cost of the equipment I wouldn't bother. If I had a salesman knock I would ask him to supply in writing what the guaranteed payback time on the whole installation will be before I signed anything. I think you would have more chance of finding rocking horse manure outside your front door than get any such guarantee. You might like to take particular note of the fact that on average the current technology available means the efficiency drops by 20% at 10 years, strange the contract they are proposing is for 10 years, coincidence perhaps?

[woolybanana]

In other words, JR, to paraphrase the excellent if somewhat long and laborious[;-)] reply by Quilhoun, RIP Orf!

[JohnRoss]

These were my feelings too so thanks folks for confirming what I thought was the case. Unlike so many other sales calls we get, I have taken to answering the phone with "Ministry of Silly Walks" or "War office here want a fight" which puts a lot off, this chap was very polished and to his credit spoke good English. The web site he referred me to avoids giving info about those things one should know about so no chance!...........JR

PS One thing he did say was that at least one of us had to be under 65 the implications of which are worrying! 

[andyh4]

Under 65, so they can sell you the loan for the installation.

 

Over 65 and no loan.

[mint]

[quote user="woolybanana"]In other words, JR, to paraphrase the excellent if somewhat long and laborious[;-)] reply by Quilhoun, RIP Orf![/quote]

Or, there's no such thing as a free lunch?

I think, too, that potential buyers could actually be put off by the panels.  Aesthetic reasons and, as Q has said, potential for structural damage should you want the panels removed.  If the buyers need a mortgage, I believe that, technically at least, you do not own all of your house as the panels belong to the installation company so you might have to pay them off before selling