Hi all,

I am looking into solar power. I have found that the UK grant system which has been going for 2 years or so, has been severely cut back this year.

Now they give a max of
2,500GBP for Bolt on systems, (panels bolted onto roof)
3,500GBP for integrated systems (means roof tiles that are covered with solar cells).

These figures are from memory and so may be slightly innaccurate.

You also have to have an accredited installer, which doubles the cost of installation, than say for example you were to do the work yourself (not very difficult) and then have a professional check it and do the final "grid connect" bit.

A typical 2KW system would cost around 11,000GBP for parts. The VAT on this alone would be 1640GBP, When you take into account the amount charged (by accredited companies) for labour, it's easy to see that the so called Government grant just about covers the VAT. So they (the Government) aren't actually doing anything to help.

If I was in charge, I would abolish all VAT on renewable energy products, e.g. solar panels, wind turbines & inverters etc. And then I would allow people to install the equipment themselves or in any way they wanted, such as using a local builder. Then in order to get a grant of 50% of the cost of materials I would require that the installation was checked over by an "accredited engineer" and that if a grid connect was to be done that this engineer would do that bit. On top of this I would introduce a scheme where the electricity companies had to pay you about 35p/Kwh produced, and the electric companies could reclaim from the government about 20p of this amount.

I got the 35p idea from Germany where I don't think there is any installation grant available but they buy back the electricity at about 35p/KWh

France is giving 40% the cost of materials and buying the electricity at 2 - 3 pence per KWh above the rate of the cost of supply. I think you need an accredited installer in France too.

In Britain, the Electricity companies used to pay 1/3rd of the cost of supply for your generated electricity! so they used to pay about 3p/KWh . Today there is atleast one electric company who has started buying it for the same cost as they charge for supply. I don't know if the other companies are still only paying 1/3rd of the cost.

Anyway, that's the background information for you. Now I was wondering what you think the future will hold? Because I cannot afford to go solar but I would like to.

A BP (British Petroleum) BP7175s Solar panel 175W Max power output (14% efficiency) (1590mm x 790mm) one of the most efficient panels on the market, currently cost about 800 GBP inc VAT

Will they get cheaper do you think? I would like to see this costing about 200GBP.

And an inverter, 2,500W capacity currently cost about 1,800GBP. Can't they make them any cheaper than this?