What would the Solar Power man say?

I just finished my first year of Solar Power. How did I do? Here is the letter I wrote to the company i purchased them from:

Dear Sir,

I e-mailed 6 months into my contract to voice concerns that my system wasn't producing anywhere near the figures quoted me. At that time I had a reply requesting that I wait for the first year to complete and then come back to you.

I just filled in my 4th quarterly FiT figure, thus making 1 complete year.

When I signed the contract a few things were explained to me.

First that it was a contract, legally binding for both parties and that if the figures didn't meet the analysis (though this was practically impossible) you would make up the difference.

Secondly, it was drummed into me over and over that the figures were so conservative, due to being based on sunlight rather than daylight hours that I would have my loan paid off realistically in 5-7 years rather than the 10 on the contract.

As said, I have just filled out my 4th FiT figure which came to 2705 KW Hours.

With the reimbursement figures of 43p & .03p this is what I calculate:

2705 x .43p = £1163.15  

2705 / 2 = 1352.5 x .03 = £40.575

£1163.15 + £40.575 = £1203.725

The 'extremely conservative' figures stated on my analysis are: 4197, over by 1492

My payments this year on the loan are £185.38 x 12 = £2224.56

So I am currently out by £1020.835

My monthly Electricity payments are £41 per month 12 x £41 = £492

So, even if the solar panels managed to wipe out all my electricity usage (which of course it hasn't) I would still be under by £528

So, the big question is what is wrong? Why is it under producing to not even meet the 'extremely conservative' figures on my analysis?

What happens now? Do I expect a payment from you to cover the shortfall?

If this is showing a shortfall in the first year, which is supposed to be the optimal time for the panels, what happens for the remainder of their lifetime?

I look forward to hearing from you with a realistic solution.

I waited a week, got no reply and started to get the details of my local Citizens Advice Bureau. That same day I had a reply with a final settlement from the company giving me a cheque of just over £2700 to take my loan period down. To my estimation this amount will roughly pay for 4 years under production, or to look at it another way, just over 1 year full payment of my loan. The amount on the cheque was apparently worked out in co-operation with thr Micro-regeneration programme and a regulatory body called REAL.

Am I satisfied?

I was surprised at the no quibble payment given me. It means I payed about 11K for a 2.88KhW 16 Bosch panel system. I still have the prospect of 8 years payments left that won't be met fully by the Feed in Tarrif reimbursement but remember there is another 16 years after that where it's all profit.

I was not impressed with the sales tactics, and the overemphasis on paying my loan off early. The sales guys for the company I was with are apparently the technical bods too who work out the solar hours from your local weather station rather than the generalised government figures.

If you too are finding the same thing with the figures not matching up I would send a message. Keep track of all the figures in a spreadsheet, when you go to them be armed with accurate figures.

What would Mr Sunshine say?

My experience of going Solar.

I've looked into solar a lot over the years. I really like the idea of generating your own electricity, being more self sufficient and out of the clutches of the greedy power companies.
I filled in a survey a couple of years ago when the Free Solar Government initiative started, and was unsuccessful, though I didn't know why at the time.

A few months ago, I filled in another online survey, this time at a website called: http://freeelectricity4u.co.uk/ which is actually a company called PV Solar UK. They are the largest solar installer in the UK, and at time of writing, the only company covering the whole of the UK.

So, I filled in the online form again and gave it a whirl.
I was called shortly after to say a salesman would be in touch.
Then I was called again to ask if I had concrete tiles.
I don't, which apparently means I yet again wasn't eligible for free panels.
To be eligible you need to be south facing (I'm about 20° off), have a 25 square meter roof area (I didn't), and have concrete roof tiles. So all in all it was a no show on these 3 criteria.

What is important to know now is this: the Govt, through the Carbon Trust has guaranteed that solar panels on houses will be eligible for a payment for every kilowatt of electricity the panels produce. At the moment it's about 43p a Kw. On top of that you also get paid for the electricity you don't use and send back to the grid. That's about 3-4p. Now, because your electricity meter only runs 1 way, there's no way of knowing just how much you are sending back, so the Power companies have agreed a figure of 50% of what you generate. Nice and simple.
This money is paid to you through your power supplier, who claims it from the Carbon Trust. The carbon trust gets their money from us…apparently there is a payment in all our fuel bills that goes to the carbon trust for just such instalment payments.
I have seen people complaining that if you take advantage of these payments you are robbing from people…huh?
Anyway, back to the free panels… what's the catch? This is it, you get them installed for free, you get the free electricity they generate, the installation company get's all the carbon trust payments. That's how it works, and to be honest, it's a pretty good deal.

So, I couldn't have them, but before I put down the phone in disappointment the operator said there may be another option, and we kept the appointment.

How do I afford a solar system on the cheap?

OK, so the sales guy turns up and gives his pitch. It's a good one. It's very good.
But.
How do I afford it? We work out that to put the maximum number of panels on the roof (12 large or 16 of the new smaller variety), a 2.88KW system is 15K. 15K!!! I don't even have 1K of savings.
Incidentally, all the panels from PV Solar are made by Sharp, so a very reliable make.
Back to the story…

So, it just so happens that Barclays Bank have had an eye on PV Solar for a while, keeping track of their business. Also, to date Tesco's have as well and you now have an option for this next part:
Barclays (and now Tesco) have gone into partnership with PV Solar. They will loan you the money to buy the system over 10yrs. For 15K my loan is about £180 per month.
How do I pay that? You pay for it with the money you get back from the Carbon Trust, plus the savings you make on your electricity bill, which is supposed to be about 1/3rd.

(the figures for savings etc are based on my house, the angle to the south, the amount of shading the roof gets. Each will be different, so these figures will probably change for you).

So, I signed up. Your given 7 days to cool of and change your mind, then the surveyor comes and checks the property to make sure it will all go to plan. The panels themselves don't take any drilling, they clip onto the tile rafters. The fitters remove the tiles, put some brackets onto the beams, then put the tiles back. Then the panels slot onto the brackets.
We are a 3 story townhouse end terrace, so had to have quite a bit of scaffolding.
The installation took 1 day, the scaffolding was removed and the job of PV Solar was done.
You do get a pack of pre-paid postcards to fill in each month to let them know how the system is doing, and to date I've filled in 2.

Now the bit that was like pulling teeth.
To complete the deal with the Carbon Trust you need to get a Feed In Tarriff form from your electricity supplier. Mine is British Gas. On the BG website their is a number to ring. I tried, and after 15mins thought they must be busy and gave up. The next time I tried for 20mins. The final time I left the phone ringing and ringing. It took 90mins for someone to pick up. 90mins!
If you are not patient, give up now. I was told in reply to my letter of complaint to BG that the amount of people taking up the Solar Panels is phenomenal, and there is a 4 week backlog.
I eventually get the form, fill it in sending the certificates that come from the Solar company, and then waited for the Terms & Condition's form to sign. After a couple of weeks I sent a letter. I had tried e-mailing: greenhomes@britishgas.co.uk. but all I got was an automated response. The letter did get me the T&C form, it is now signed and dated. I lost about 64KW from the installation to getting the form, so I won't get money for that.
Apparently, what happens now is every 3 months I have to e-mail the readings to BG and I will get a payment within 28 days.

Does it all work?
I can't answer that fully yet, I haven't got to the 3 month period, and when I do I will have lost the first 64KW from the reading because of the above delay. So far, according to my rough estimates the amount may not be enough to cover the loan, but it may be only by £10 or so. Oh, and it's not so bad when you also realise, that although the loan is for 10yrs, the guaranteed carbon trust payments are for 25yrs.
Last month (July) it produced about 300 units, so that would be:
300 x .43 = £129
150 x .03 = £4.5
(my electricity bill has just come and I am £30 in credit), so all together = £163.5
These are rough figures, I think the actual figures are higher, and also linked to inflation, and tax free too!

I will report back more when I know more and the first payment has proceeded, but as there is so little info of this type on the net I thought I would write my story so far.


p.s.
I thought i would mention that solar panels really does alter the way you live and do things.
We have bought lot's of timer plugs from Amazon so all the power hungry items come on at midday, when the electricity coming from the panels is at it's peak. We've turned to slow cookers for a lot of meals, all energy saving bulbs, and are also looking at updated washing machines/hoovers.
So far, we can have 2 slow cookers on, radio, fridge & freezer and it doesn't cost a penny. Obviously as soon as daylight (not sunlight) goes, you are taking power from the grid, and thus paying.
Also we boil the kettle once in the morning and fill a flask rather than keep boiling. Charge laptops up at midday and then unplug. Anything to use free power rather than pay.
I've also just started buying low wattage 400w electric radiators to help in the winter. Gas is a real killer, I'm still paying off last winters bill for central heating.

If you have any questions, please ask, and if I can I will answer them.