As far back as November 2010, Scottish Power said electricity bills will rise by around 8.9% while prices for gas increases by an average of 2% Should you then take into account the latest comments by The Bank of England in their latest Inflation Report, which can be working on an assumption that electricity prices may rise by 10% this winter, the outlook for consumers is bleak.
If this type of trend of price rise continues, the cost of electricity in the home would double every 8 years putting enormous stress on the economy, consumers must surely now think seriously about finding alternative sources for domestic power.
With regards to consumer awareness, solar energy probably ranks just about the most recognisable forms of renewable energy, as harnessing the strength of the sun has been in the public eye for several years, and of course the introduction of financial incentives for renewable power under the UK Feed in tariff 2010 can also get helped raise the profile of Solar energy.
Faced with energy price rises reaching double figures, which can be feared to become more frequent, it would appear that one of simplest and most obvious solutions for consumers would be to generate their own electricity from solar panels.
Free electricity is probably not free to install, the average solar panel installation could cost 10,000 or more, however it can certainly pay for itself – and much more. Using the feed in tariff guide for any 4 kilowatt, grid tied domestic solar panel installation; which should produce around 3,000+ units of electricity annually, the income that may be generated (which is normally tax-free) is currently 43.3p per unit or 1,239 each year for the next 25 years – and it is index linked. Not only does the Solar power system generate income, it frees consumers from the painful chains of the aforementioned utility company price rises, saving cash on energy bills year after year.
Is solar power a smart investment? Based on the figures you can purchase, the answer would seem to become yes- if you have the funds available. In this situation if you don’t have the available capital, even though borrowing money (for instance on your mortgage) to invest in an investment carries significant risk, it may well be something worth investigating.