Installing solar panels or a wind turbine can be a very good investment in the UK thanks to the feed in tariffs which pay householders a tax-free, index linked income for the energy they produce, providing over a 10% annual return.
The tariffs pay up to 41.3p for every 1kWh of electricity produced using solar panels and an extra 3p per unit on top for any surplus electricity sold back to the grid.
The average cost of home solar panel installation is £14,000.
From this outlay, Ownenergy, a company that advises consumers on renewable energy, suggest that averge 3 or 4 bedroom hosue can expect a return of approx £950 per year.
Given that the income is tax free the return is equivalent to 12.9% for a 50% taxpayer and 10.3% for a 40% taxpayer, with the investment being recouped in as little as 7 years.
Electricity feed in tariffs were introduced by the UK government in April 2010 as a means of encouraging householders to install solar panels or wind turbines.
