Investment Vs Solar PV

Your investment in Solar PV could generate between 9-11% returns; tax-free, index-linked and government backed for 20 years (thanks to the Feed-in Tariff scheme). You’ll also save hundreds on your electricity bills (while also reducing your carbon emissions). You can choose to either pocket your income from solar PV, or invest it in an ISA every year.

We are convinced that there isn’t an ISA or investment currently available that will give you these returns. But don’t just take our word for it; use our calculator below to compare the interest you’d earn from a savings account versus the returns you could expect from solar PV.

Things to consider

There are several factors that affect how much you can expect to make and save by generating your own electricity:

Inflation

FITs is index-linked so tariff rates for generation and export will increase each year. The Bank of England’s target rate of inflation is 2%.

Electricity prices

As electricity prices rise, you’ll save more on your electricity bills based on what you would be spending if you didn’t generate your own power. The Department for Energy and Climate Change (Decc) forecasts that electricity prices will go up by 2.6% annually until 2030.

Interest on savings

You’ll make “profit” from your solar PV system after your income (including savings) has matched the cost of your installation. To work out the financial benefit of investment versus solar PV, first estimate how long it will take to recoup the cost of your system. Then calculate the amount you would have earned if you’d put your money into a savings account for that period.