Home improvements are always important for a number of reasons. Perhaps you’ll want to retain property value, ensure your house is looking its best throughout the year, or even find a way to reduce your ever-expensive energy bills. Whatever the case for you making changes to the home, one of the major factors for you to consider, is how you’ll finance the project. Some improvements, such as adding loft lagging or cavity wall insulation won’t break the bank. Payback can be in just a couple of years because of the money saved on wasted heat, so it makes sense to finance the work yourself.
However, there are other areas of the home that could be improved too if you had a bigger balance.
So let’s take a look at how you can finance solar panels.
Solar panels are far and away Britain’s favourite renewable technology. They capture the sun’s natural energy rays and convert them into electricity for the home, to be used for lighting and appliances. There are plenty of lucrative reasons to make an investment, starting with the money you’ll save on electricity bills. As you produce your own power there’ll be no need to rely on the National Grid, helping to save a small fortune.Then there’s the feed-in tariff scheme. This is a Government-backed initiative paying out for every unit of renewable electricity your panels generate. With this, you stand to earn over £500 on a yearly basis.
How to finance solar panels
Self Funded:
Solar panels are certainly worth an investment, but a typical system will set you back between £4,000 and £6,000. Obviously not everyone has this kind of money sitting around in the bank. First off, if you can, then investing yourself is the best course of action. You’ll see maximum savings and earnings and will be able to make a substantial profit over 20 years. If this isn’t possible though then there are other options.
Fully Funded Solar:
If the idea of a loan doesn’t sit favourably with you, then how about taking advantage of a fully funded solar scheme? These schemes operate solely on the basis of solar panels offering such lucrative returns. Essentially you rent out your roof to a solar company. The system is installed on your roof for free and any savings on electricity bills go straight into your pocket. You’ll have no maintenance fees or running costs either.
So how does the other party benefit? Simple. All Government feed-in tariff payments go directly to the solar company to ensure the scheme’s worthwhile.
If you’re considering solar panels then there are certainly a few avenues to explore. Whilst we always recommend making your own investment we appreciate this advice can’t always be followed. Definitely take a look at the other solutions to help you produce green electricity.
Green Deal:
The Green Deal is a Government scheme to promote home efficiency. Under this flagship initiative you’ll receive loans up to £10,000 to improve the efficiency of your home. There are a number of products included in the scheme and thankfully, solar panels are one of them. What makes the Green Deal so popular is the Golden Rule. This states that you won’t make greater loan repayments than what you’re saving with the solar panels. This is great news as you won’t be out of pocket.
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