Property: 5 Bedroom Residential House Technology: 4kw Solar PV System Cost:  The cost to heat, light and supply electric to the 5-bedroomed detached house cost approx £160 per month, equating to £1,920 per year. Installation cost of the Solar PV system was £20,000.

Savings: 

Installing a 4kw Solar PV system generated the equivalent of £32/month in electricity, which covered 20% of the property’s bills. The government feed-in tariff scheme covers the remaining 80% which is the equivalent to £128/month. This resulted in the house being bills-free for 25 years.

Benefits: 

The house significantly increased in value because of its re-classification as bills-free. This was an instant payback for the homeowner of more than double the cost to install the solar system. The homeowner also reaped the immediate benefit of having no bills to pay on the property, reducing his monthly outgoings. The property is future proofed for the next 25 years against rising energy prices and against future legislation to raise council tax rates on lower energy performing properties. Neighbours were also elated as revaluation of the property raised the street’s property ceiling price thus making it a more desirable area.   

Property: Mill Technology: 100kw Solar PV System Costs: The electricity bill for the mill was £35,000 per year. Savings: A 100kw Solar PV system generated 85,000kwh of electricity per year which equates to £7,953 in monetary terms. The contribution from the government scheme is £31,811, which results in a total annual tax-free sum of £39,764.  This generated a tax-free surplus and profit for the owner of £4,764.

Benefits:

The powerful free PR associated with being an early adopter of solar attracted greater interest in the mill and helped the company let out additional mill space, which had previously been under-utilised.  They were also able to increase the rent they charged to their current commercial tenants to above market value. This was because of the higher profile of the mill and the lower running costs of the mill space, which made it much more desirable to rent.

As a result, the commercial tenants were future-proofed for the next 25 years against increasing business rates and energy rates levied on poorer performing buildings. This also benefited the company as, although they didn’t pay the rates themselves, they would have had to significantly reduce the rent in the future due to the higher rates that tenants would have been forced to pay under previous conditions. 

An additional benefit was that the solar panels gave the owner an alternative option in the future – to develop the mill into bills-free apartments, which potentially had massive value.

Property: Storage Facility Technology: 300kw Solar PV System Savings: The building’s running costs were nominal as it was primarily being used as a storage facility. Thanks to its huge roof space, a large 300kw Solar PV system could be installed.  The solar PV system generates a £255,000 in kwh of energy per year which equates to an annual income of £118,896.

Benefits:

The owner, who was a 50% tax payer, made the decision to install such a large system in order to generate an additional income from his building, which would be tax-free.  A comparable investment from the market with the same financial benefits would require an investment with an 18% gross yield. It would also need to be guaranteed by the government to offer the same security.  

In addition, the building owner was able to use the income generated to offset the installation cost against a previously large annual tax bill. In addition, the solar income was all tax-free. The value of the property also doubled because of the solar installation, which he would then able to sell on as a going concern. If he did this, it would provide a tax free income for the next 25 years.

The roof of the storage facility became the owner's most valuable asset as it actually generated a better income yield than he was getting from his tenants! The owner came to view the solar panels as a form of tenant - but one who never complained and always paid on time(!).