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Free solar power - too good to be true?
You can generate energy at home for FREE and have solar panels at no extra cost. SOPHIE HAZAN investigates
YOU know the old adage – if it sounds too good to be true, it probably is. So when Consumerwatch heard that solar panels were being fitted for free, we immediately asked: "What is the catch?"
For those who simply want to realise a dream by becoming more self-sufficient in terms of energy, then there is no catch.
You get to help the planet by harnessing sunlight that in turn cuts your bills – an average three or four bedroom house would save 150 on electricity, according to the Energy Saving Trust.
The company benefits as it gets to cash in on any extra electricity that you generate and fail to use by selling it back to the national grid.
Feed-In Tariffs (FIT) work out how much green energy has been pumped back into the national pot.
And it seems that this is where the real money-making potential lies for anyone investing in sun energy.
A typical home would earn 836 a year tax-free in this way, according to the EST – but in this case the cash goes to the company.
A EST spokeswoman said: "The company installing the solar PV panels benefit from receiving the full FIT income for the site, while the customer benefits from free on-site electricity.
"Another way of looking at this is that the solar panel owner is simply renting the roof space from the customer.
"Although mainly applicable to solar PV, the idea for this scheme may also apply to other technologies."
The Energy Saving Trust supports the microgeneration but warns customers to make sure that the technologies:
Are suitable for the property
Will lead to carbon and energy savings
Are installed by an MCS installer using MCS products.
Normally free solar PV is installed in panels on south, south-west or south-east facing roofs.
A company pays for the installation, connection charges and the maintenance of the panels.
The home owner benefits from free electricity from the panels, which should work out at 20 per cent of annual use.
Any electricity that is not used is exported into the local electricity network, and income generated from it goes to the installation company, or around 600 a year.
The EST has come up with a list of key questions for consumers to ask companies offering them free solar PV:
Who's paying for the equipment? Is that in full?
Who gets (a) the generation tariff, (b) the export tariff, (c) the 'free' electricity?
Is the electricity used on site and/or exported going to be metered, or will it be assumed that 50 per cent will be used?
Who owns the equipment such as the meter, wires inside the building and equipment on the roof/in the back yard?
Who pays for maintenance and repairs such as if the DC/AC inverter fails?
Who will insure the equipment? Against what?
Who will be liable if the equipment causes damage to a building or electrics?
Is this a loan or hire purchase deal? In which case how long is the contract for, and what is the annual equivalent interest rate (AER)?
Where is your consumer credit licence?
How long is the cooling off period – it should be seven or 14 days depending on whether the deal was done over the phone or in person?
What happens if I decide I want to pay off the remaining costs early? Can I have the FIT re-assigned to me?
What happens if I move house and the new owners don't want the deal?
Are there FIT targets?
Do I need to let my mortgage company and/or buildings insurer know that this installation has taken place?
Who is responsible for addressing any planning issues or electricity distribution company notification requirements? Who pays any associated costs?
What happens if the company which owns the equipment ceases to exist such as one that goes into liquidation?
If you do decide to go ahead with a free solar PV offer, remember to maximise the savings on your bills by using appliances such as washing machines and dishwashers during the day when the power provided by the solar PV is highest.
Read about consumer issues every Monday in the Yorkshire Evening Post
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Saturday 11 February 2012
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