Free Solar Panels

If there was a way to cut your energy bills in half, for free, while doing your bit for the environment, then you’d probably think the offer was too good to be true! We take a closer look at companies offering free solar panels to see what the deal is.

Thanks to the governments FiTs (Feed in Tariffs) scheme introduced in April 2010 a host of different solar energy providers are now willing to install up to £15,000 worth of solar panels in your home for free.

They promise free energy which could drastically cut your energy bills by letting you use the energy generated from the panels. Sounds like a great deal!

COULD SOLAR PANELS CUT MY ENERGY BILLS?

If you own your own home and want to save money as well as the environment then investing in solar panels could be an option worth exploring bad credit loans.

Essentially in return for hosting the solar panels on your roof the company will let you have the energy generated free of charge thereby reducing your energy bills.

However, before signing up with for the panels there are several other factors worth considering...

The types of solar panels provided free of charge by the free schemes get their power through daylight and cannot store it for any length of time. Ultimately this means they will be producing the free energy during the day and by the evening they will be generating a lot less, especially during the winter months.

This means that if the majority of your energy consumption takes place in the evening, when the sun has gone down, then you may be some way off the 50% savings quoted on some of the providers’ websites.

That said if you are at home during the day or can alter your energy usage to daylight hours then there is the potential to make the most of the free energy the panels generate. One way of doing this is to use time activated appliances, so that your washing etc comes on during the day and is finished when you come home.

While there are no restrictions on what the energy generated can be used for you should not expect solar panels to replace the energy you draw on from the national grid, they will simply provide a supplement meaning you will need to pay for less.

DO I QUALIFY FOR FREE SOLAR PANELS?

Unfortunately the offer of free solar panels doesn’t extend to every house in the UK, there are some quite specific requirements that you will need unsecured loans to meet in order for the companies to feel that it’s worthwhile.

The first of these is the orientation of your roof. With the way that the Sun moves through the sky south facing roofs are easily the most profitable. If your roof’s orientation is South-East or South-West then the companies may still consider installing, although they may charge an installation fee. Any other direction, however and there is little chance you will be eligible.

The angle of your roof will also affect your eligibility The ideal angle is somewhere between 30 to 40 degrees, although flat roofs are almost always eligible for solar panels too.

The second factor is the size of your property; the roof will need to be large enough for the solar panels to generate enough energy to make the venture profitable for the company installing the panels.

A rough size of around 24sq meters gives you a guide on what they are looking for. If your roof is a little small then again they may either refuse to install the panels or charge you a fee.

Thirdly the roof needs to be unobstructed. This means that isn’t shaded by trees or a neighbouring chimney. One of the solar companies Home Sun state that even 3% of shade can reduce the solar panels performance by 25%.

If you think that you meet all the above criteria then you could potentially save money with solar panels.

WHAT’S THE CATCH?

Well, the reason why so many companies are offering to install up to £15,000 worth of equipment at little or no fee is because they can profit directly from the governments FiTs program.

This model is based upon you agreeing to host the panels while the company still own and operate them. They then let you use the energy generated from the panels for free as they get paid just for generating it regardless if you use it or not. Any energy that you don’t use is fed into the national grid. Effectively they are giving you free energy in return for renting your roof space.

The estimated income from through the FiTs program (as well as any additional income sold back to the national grid) could be anything up to £35,000 over 25 years. So for an initial outlay any company offering free solar panels are looking at a healthy profit.

The government has also linked the rate they will pay companies or individuals on the FiTs program to inflation so it can be viewed as being a relatively low risk undertaking.

CAN I BUY THE SOLAR PANELS AND SIGN UP MYSELF?

If you are able to raise the funds, then chances are you could make more money by singing up to the FiTs program directly.

Doing this would mean that you not only have the benefit of free energy from the panels reducing your energy bills but you would also get paid for the energy you generate.

The current rate of remuneration for any energy generated by the panels under the FiTs scheme is 41.3p per kW of energy, regardless of if you use it or if it is fed into the national grid. This price is guaranteed for 25 years so in effect represent a stable source of income.

You may even want to consider finance because as long as the interest rate is not too high your monthly repayments could be less than the income generated from the FiTs scheme – and you’d still benefit from cheaper energy bills as well.

However getting into debt, for whatever reason is a serious undertaking and you should only look at this option if you can afford to make the monthly repayments and feel it is worth exposing yourself to more debt.

Estimating how long it will take to earn back the money you spend on installing the panels will vary depending on how large the panels are and the amount of energy they will generate.

The energy savings trust have an online cashback calculator which allows you to estimate how much you might save and how long it would take to earn back the cost of the panels – this includes if you need to take out a loan to pay for the panels.

I WANT TO GET FREE SOLAR PANELS, WHAT DO I NEED TO DO?

The first thing that you will need to do is confirm that your roof is suitable for solar panels. If your home doesn’t have a south facing roof then it is unlikely that your property will be qualify for free solar panels.

You are then free to contact some of the companies who offer the panels to either arrange a viewing of your home to see if they would be willing to fit free panels or to arrange a quote to buy the panels directly.

Once you have agreed to a price to buy the panels, or arrangements for free installation you will need to arrange for the panels installation. Most providers estimate that they will be able to complete the installation in 1 or 2 days depending on the size of the project. The process will involve setting up the panels on your roof and access inside your home to fit an inverter and electricity meter to measure the amount of energy generated.

After installation is finished the panels will be up and running, all you will need to do now is contact your energy supplier and inform them that you have had the panels installed and will be drawing from them as well as the grid.

Depending on your supplier you will then either see your bills reduced over the coming months or they will keep your payments the same and arrange for a cheque to be sent out every 3-6 months to pay for any electricity you generated.

OTHER POINTS TO CONSIDER

1. Planning permission

The majority of solar panel installations don’t require planning permission. However there are some notable exceptions. If your property is a listed building then you should check if planning permission is needed and if so may have some difficulty obtaining permission. Some companies state they will not offer free panels to listed buildings. Equally if your house is on a main road then it would be worth checking with your local housing office if you need planning permission for the panels.

2. Maintenance

When agreeing to host the solar panels you will also have to agree to allow access to maintenance workers from the company for the next 25 years. While it is not in their interests to be popping in and out of your home every week or so, you may have to accommodate them every once in a while. Alternatively if you decide to buy the panels outright then you may have to pay for any maintenance work required further down the line. Before agreeing anything it is worth checking exactly who would be liable for maintenance work.

3. Weight/roof condition

When you’re deciding whether to apply for solar panels you may want to assess your roof condition. Although any assessor giving you a quote should do this thoroughly you may want to clarify who would be liable for any damage done to the roof as a result of the panels.

4. Appeal to future buyers

The jury is still out as to the impact of solar panels on the value of your home. Some potential buyers view them as an eye sore and ask for them to be removed before purchase; however others view them as an asset, helping the environment and providing an economic benefit as well. If your panels are not visible from the road or on a flat roof then buyers may feel they are less of an issue.

A Shade Greener are set to launch at Homes for Sale site where any customer who has had their solar panels installed can advertise their home free of charge so that buyers can search exclusively for homes with panels already in place.

If you are unsure about the impact solar panels will have then you could consider speaking to a local estate agent to get their opinion on how the influence selling your property.

5. Appliance development

Many people question how efficient the current PV Solar panels are and that costs may drop substantially over the next couple of years.

At the moment economists estimate that we will reach energy parity in 2014. This is the point at which the cost of generating green energy is the same as burning fossil fuels.

Because of this expectation that solar power will become more cost effective in the near future, some people think that installing solar panels now could mean you could have outdated and inefficient technology in the not too distant future.

However, you may not want to wait too long because the FiTs scheme is only guaranteed to accept new entrants until 2012.

WHO OFFERS DOMESTIC SOLAR PANELS?

There are several companies who specialise in domestic solar panels and offer a free installation package, however as it has become more popular in recent months some mainstream companies are also moving in to the market. Below are some of the main providers.

Home Sun

One of the first companies to offer free solar panels, Home Sun is targeting homes in the south-west of England with a due south orientation with at least 30m2 space. For properties that are not ideally situated but have a South-east to South-west orientation they also offer a smaller 20m2 Solar Share system that costs £500 to install and £5 a month to maintain. Both systems claim they can reduce energy bills by a third and can be used for any household appliance. Home Sun will also sell the solar panels so that you can take advantage of the FiTs payments directly, however you will need to contact them to get a quote.

Isis

Isis claim that they can give their solar panel customers savings of £300 a year on electricity bills with their free installation and maintenance package. Isis will also sell solar panels to you directly enabling you to set up the FiTs payments, they ask customers to contact them directly for a quote.

A Shade Greener

Based in the north of England, A Shade Greener are offering free solar panels to homes in Yorkshire, Derbyshire, Nottinghamshire, Lincolnshire and Humberside (Although the hope to expand into the Midlands and South West).

Tesco

The Supermarket giant Tesco has entered the solar panel market and is offering to install systems ranging from £6,999-£14,499, allowing customers the chance to benefit directly from the FiTs payments. These also offer Clubcard points on all purchases.

Green Energy Power Solutions – Yorkshire.

Based in Sheffield, Green Energy Power Solutions are currently offering free installation and maintenance in the Yorkshire area.

British Gas

One of the largest Energy suppliers in the UK, British Gas has entered the solar panel market. Although they don’t offer free panels if you are considering the FiTs program their prices start from approximately £7,900.