Believe it or not, Manchester receives more sunshine each year than London down South! With more land for single-family homes, Manchester is a great place to utilise clean PV solar power in the UK. Renewable energy can protect the natural history of the landscape and keep the air clean and crisp. Here are several ways you can help by investing in PV solar power in Manchester this summer.
Option One: PPA
Power-Purchase Agreements (PPAs) are a popular form of what’s referred to as “third-party solar.” In a PPA agreement the solar company you choose installs and owns the panels on your roof while you consume and pay for the electricity that’s generated by them. This amounts to savings even in your first month after the install.
In a PPA the solar company essentially acts as your second power provider, accept the solar electricity produced by the panels on your home is sold to you for a much lower rate than the electricity from your power provider. Having a PPA doesn’t entirely rid you of your normal power bill since you will still need electricity from the power grid at night, but it will certainly save you money!
Option Two: Solar Lease
Choosing to lease your panels has many benefits. There are no out-of-pocket costs and you can expect your total power bill to immediately decrease. This option is enticing because there are really no downsides short-term. You will only have to consider whether you want to purchase the PV solar panels at the end of your term or not.
Option Three: Financing w/ a Feed-In Tarrif
If you plan to stay in your home for a while and you’d like to own your own system but can’t afford the initial expense, you can often easily secure financing. The initial installation costs become an investment that has a return that outpaces some of the strongest performing mutual fund investments. Additionally, there are a lot less principal risks because the energy credits you produce are dependent only on the sun rising each morning as opposed to moody financial market fluctuations.
Also, if you lease or do a PPA, you won’t receive any of the credits and incentives that you might receive when you own the system yourself. All of those go to the solar PPA company (that’s how they can afford to offer you a PPA in the first place). You will receive all of these credits if you decide to finance or own your solar panel array.
Then, after you’ve paid off your loan you can save up to £1,100 per year off your power bill! Here are some specific examples for a solar purchase with a solar loan:
- Installing a typical 5kW solar system should start at about £12,250. That’s about how much your loan will need to be to cover the entire expense.
- The electricity you’ll save in the first year of operation would have cost around £762, but your loan payments will total £886, for a difference of £124, or only about £11 more per month!
- When your loan is paid off in year 15, you’ll start see up to £1,100 per year in savings until the end of your system’s 25-year warranty. If the PV panels last longer (and they probably will), your return will go up!
- For a 25-year estimate, you’ll see some great profits, to the tune of £6,885, even after all the payments.
- And the future is going to look a little brighter, since your system will mean green for the environment. It’ll be like planting 110 trees every year its in use.
Option Four: Purchase Outright
A 5kW solar system install generally starts at around £12,000. That’s initial costs though so don’t worry, you will likely get a substantial amount back in incentives and rebates after the first year and enjoy an immediate drop in your monthly electricity bill through the Feed-in tariff scheme.
Paying in cash up front used to be the only way to have solar panels installed back in the day and is still an option that gives you the most control over your savings. It’s not always the best option from a short-term return on investment percentage standpoint, however, as it will take several years to offset the initial expense.
An outright purchase means you receive the biggest returns over an extended period of time as you can reap all of the benefits of owning the system, but luckily if you can’t afford the total cost upfront there are still plenty of options to go solar.
Deciding on the best way for you to go solar in Manchester can be rather difficult. There are lots of options though, from power-purchase agreements to leases and loans, there is almost always an option that can work for your home and finances. Hopefully this list will aid in your decision to go solar.
Jayson is a strong believer that you don’t have to be wealthy to live a rich and full life and wants to share tips on how to do exactly this. Whether its saving money tips, smart everyday hacks, or green energy, he hopes to inspire others to do more with less.