While feed-in-tariffs are a well-established incentive scheme, which many homeowners have benefited from since they were introduced, the government's new Green Deal financing scheme is very much in its infancy.
With feed-in tariff payments being one of the major incentives for installing solar panels, one question which has been raised is whether the Green Deal loan scheme can work alongside the payments from the feed-in tariff to help offset the repayments as well as getting the most out of the technology.
Despite both being government incentive and financing schemes, the Green Deal and feed-in tariff are not mutually exclusive schemes and can work together to give homeowners and businesses a great, affordable solution to solar power installations, and installations of other renewable energy sources.
Green Deal Pays For Installation, FITs Top It Up
In a new document, published by the government's Department of Energy & Climate Change, a worked example is given to show how it's possible for the two schemes to work together and for the solar power generated to still provide savings and income over the life of the panels.
Factoring in the average cost of a 4kW solar PV system, additional balance needed by the homeowner and the total repayments made over a 20 year duration, the document explains how having the system installed can still give a net saving of almost 8,000 – based on estimated generation and average installation costs.
Helping to offset the 4,400 balance needed by the homeowner and the 5,100 of repayments, the homeowner can still expect to generate around 605 a year from the feed-in-tariff as well as around 255 in electricity saved (from not using 'grid' power), which goes towards the repayment costs.
