This system will produce 2222 KWh’s per annum and save 1262 kg’s of CO2 emissions annually on a 70degree off South facing roof at 23 degrees and unshaded. This system will generate an income of about £918.00 and offset £333.00 of imported electricity based on feed-in-tarrifs introduced April 2010.
Therefore with an income/benefit of £1251 pa I can expect to pay off the cost of the PV system in 9 years or a return on investment of 11%, which seems a bit ambitious when governmental figures suggests the FIT return on this investment is 5 to 8%. The Government (or the European Union) have imposed a 5% rate of VAT on renewable energy projects compared to the 17.5% standard rate saving nearly £1500 on my project as well.
The feed in tariff and the tax breaks have convinced me of the value of going for a renwable energy system...and of course we mustn't forget the 1262 Kgs of carbon emissions reduction that this project would deliver (according to the commercial supplier)