On 06/11/2011 10:07, tim.... wrote:

I am beginning to find posters whose software doesn't properly
distinguish between their remarks and those that have gone before more
than a little confusing. Tim at least has added a divider.

Phew, got in just in time! I am become one of the elite.
I expect the price of panels will come down.
There won't half be a rush before Christmas.

Harry got in with plenty of time to spare. Those who get in 'just in
time' are those who are still in limbo but will get in by 12th December.

Mind you, £0.21/Kwh would still give a better return than money in the
bank these days.

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Not when you have to write down the initial investment to zero, it doesn't

The installation is a wasting asset so, as an investment, the capital
has to be recovered before any profit is made.

The argument against the 43.3 FIT seems to be that a 10% return is far
to high but it is a risky venture and deserves a substantial premium
over and above what can be gained from guaranteed investments. The real
profit is far in the future and there is plenty to go wrong over the 25
uncertain years the scheme will be in operation.

With a system costing £15000 and the FIT at 43.3p the expected income is
approximately equivalent to interest at 10% so for the first year there
is little prospect of any recovery of capital invested.

With a FIT of just 21p and notional interest of 4% there is at least a
£100 surplus to set against capital but the low return means that just
about any major expense will turn a poor return into a dead cert loss
maker. You can get 4% now on a number of 3 year fixed rate ISAs with
banks (including Northern Rock) where the Government has guaranteed that
your savings are safe. Who in their right mind is going to invest in
risky PV panels when there is a gold plated alternative available? Yes
I know the scheme will still seem attractive to the committed Greeny but
such folk are so thin on the ground that that those with sufficient
funds to indulge their prejudices could probably be counted on the
fingers of one hand.

--
Roger Chapman