British Gas Launches Solar Panel Scheme
By Rob Hull on August 26, 2010
British Gas has waded into the domestic solar industry by launching a new scheme designed to benefit more than 12 million homeowners in the UK.
As with several solar panel installers before it, British Gas hopes to capitalise on the potentially lucrative Feed-in Tariffs (FiT), which were introduced by the previous Labour Government.
At present, every unit of energy generated under the Fits Scheme is worth 41.3p per KWh to homeowners regardless of whether or not the energy is consumed at the time – users can earn more money through export tariffs, which feed energy to the National Grid.
The Feed-in Tariff requires the installation of solar panels, however, which are not exactly inexpensive in the current economic climate. British Gas aims to solve the problem of costs by selling homeowners two distinct packages.
The first solar package has been named the ‘rent-a-roof’ scheme, which works by having British Gas install the panels at no cost to homeowners. Instead of owning the solar panels, customers derive a portion of their benefits by renting them from British Gas.
Under the rent-a-roof scheme, homeowners benefit from the electricity generated during the day but do not receive any income from the Feed-in Tariff; indeed, British Gas would pocket the cash from the incentive over the scheme’s 25-year period.
The rent-a-roof scheme is likely to appeal to homeowners who wish to benefit from clean, renewable energy but who cannot or are unwilling to spend money on solar panel installations.
Unfortunately, the rent-a-roof scheme is limited to the first 1,500 British Gas customers who apply.
British Gas will also provide two-year interest-free loans to customers who wish to install and own their own solar panels.
Supplied by Hitachi Capital, the British Gas loan aims to provide the necessary upfront costs – typically between £10,000 and £15,000 – to install solar panels.
Customers can benefit from the loan by generating their own power and exporting energy to the Grid under the Feed-in Tariff scheme. Returns can be in the region of 5% AER or around £1,000 p/a and can be estimated via Solar Guide’s Solar Panel Calculator.
The Managing Director of British Gas New Energy, Jon Kimber, said: “Solar power will revolutionise the way British homes generate and use energy.
“Customers reap the benefits of this technology to cut their electricity bills, reduce their carbon footprint and earn a yearly income”.
I wish to apply for the rent a roof campaign as I firmly believe that we should use more of nature’s gifts.