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Bob Minchin[_4_] Bob Minchin[_4_] is offline
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Default Electricity meter question.

Robin wrote:
My array cost £14,000 so the return should be 11.8%. Where else can
you get that tax free, inflation linked for 25 years?


Is that a fair comparison when you can get your capital back from a
bank but you will not sell the panels+inverter back for the original
installed price in 10 years even forgetting inflation?

I find it more helpful to look at it as a 25 year annuity, indexed to
the RPI. For a capital outlay of £14,000 Harry receives an annual
income of £1,650 index-linked to the RPI. That's an annuity rate of
11.8%. By comparison a man of 65 (so with a life expectancy25 years)
would get a single, RPI-linked annuity of around £440 a year. And the
annuity is taxable where the feed-in tariff is not. So, surprise
surprise, those with big houses have piled in making feed-in tariffs a
deeply regressive tax - or if you prefer, middle class welfare payments


Having paid tax equivalent to the price of two small family cars each
year through most of my working life, I'm pleased to be getting a bit of
that back now. Oh yes, no state pension yet, no benefit payouts and
still supporting 24 yo son who can't get work or dole. No big house
either btw.

Bob