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Financial Benefits

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A division of Viridian Solar

FIT_diagram

SYSTEM DETAILS

Size

Location

Orientation

Roof pitch

 

120 kWp (840 m2)

Birmingham

South

6 degrees

99,500 kWh x £0.1034 =

£10,300 /year

69,500 kWh x £0.10 =

£7,000 /year

30,000 kWh x £0.0477 =

£1,400 /year

£18,700 / year

ANNUAL BENEFIT

BOUGHT OUTRIGHT

Payback time

20 Year Accumulated Benefit

Average Return on Investment

6 years

£378,000

10.8%

FINANCED PURCHASE

Payback time

20 Year Accumulated Benefit

Average Return on Investment

7 years

£368,500

10.4%

Photovoltaic solar is supported under the Feed in Tariff (FIT). As an owner of a solar photovoltaic system you are paid quarterly for the electricity you generate, irrespective of whether it is used on site or exported to the electricity grid. You are also paid a further amount (the export tariff) for electricity that you generate and do not use on site.  Tariff payments are determined by the size of the installation, with values set at the time of installation, index linked to the Retail Price Index (RPI) and running for 20 years.

 

The diagram below shows the financial benefits for the example of a 120 kWp system installed in Birmingham.

Assumptions

 

System cost

RPI for FiT

Inflation rate for electricity

Interest rate on loan

Interest rate after tax relief

Loan period

Performance degradation p.a.

 

 

£120,000

3%

5.6%

7.03%

1.62%

5 years

1%

Read more about finance options here