(Please note figures quoted assume south facing, 30° pitch, no over-shading, 50% of energy generated is used and current energy cost of 12p/kWh)
The cost of a Solar PV system ranges from £3,995 for a 1.5kW system up to £7,995 for a full size 4kWp domestic system on a standard installation (inc. VAT).
The payback time will vary depending on the cost of the system and the output that can be achieved but it generally works out at around 8-10 years for a full size domestic system. If you assume 2% inflation and an annual increase in energy costs of 3%, the return on investment over the 25 year life of the panels for a 4kWp system calculates at around £28,600, that’s an average annual rate of return of around14%.
However, the performance of solar PV systems is impossible to predict with certainty due to the variability in the amount of solar radiation (sunlight) from location to location and from year to year. The figures used here are based upon the Government’s standard assessment procedure (SAP) for energy rating of buildings and are provided for your guidance only.
