Love it when this happens

[northernsun]

Surely though, they are spending all the money at todays prices? I think its important not to oversell it, but the fact that the fit is indexed linked is a very good part of the investment.

 

[SolarCity]

Also, if you are going to do this then do you not have to point out how much the original investment would be worth in 25 years time and adjust the payback period to suit?

 

[SRE]

Our comparison shows how much their 12k would be worth with a 4.5% interest rate over 25 years and if they invested all their savings back into a bank account with a similar interest rate how much that would be worth. We calculate 20% tax but can change it to any % they want. We use 3% inflation, 5% fuel inflation and 4.5% for savings interest. They are all conservative figures that can be changed but help to give a bit of perspective to such a long term investment. We always underestimate the electricity savings and suggest that they aren't counted as whatever you save you're unlikely to put it in the bank. The comparison is then what the Fit would be in 25 years and what the money in the bank would be in 25 years. If 12k is only half the value in 25 years then so would the Fit saving so it's a reasonable comparison to make - if you see what I mean.

 

[liquidity]

just found this snippet on a website:

Buying Example: A 4kw PV System costing £17,000, Will return you £116,500 over 25 years, leaving you a tax free return of £99,500. No details supplied!

 

[TonyL]

I rather suspect that anyone looking to lash out £13k on PV understands inflation as a concept and how the maths works. Few will understand DCF even though it is only inverted inflation calcs. You might as well try to explain it using IRR or another of the abstruse methods employed by the bean counters.

Both FIT and Export increased by 5% (the annualised RPI for March) so you could look on 3% is a being very honest.

 

[SRE]

just found this snippet on a website:

Buying Example: A 4kw PV System costing £17,000, Will return you £116,500 over 25 years, leaving you a tax free return of £99,500. No details supplied!

I'll have some of that :rolleyes4:

 

[liquidity]

Another one I liked - got a quote through the post detailing the savings which stated that I would be able to use 50% of the generated electricity and thereby save over 500 per year on my electric bill. A few lines above that was an entry for "annual electricity consumption (customer figure)" with 420 next to it. Not impressed...