Ten thousand homes fitted with solar panels for £100 million?
That\’s bloody cheap. £10,000 a house? If only it really was that cheap to power a house with solar cells. We\’d all be using them, wouldn\’t we?
So, I had a look around to see what the catch was.
The scheme is the first major project in the UK to use the \’feed in tariff\’
Average household annual usage is 4,800 kWh, subsidy to solar PV on the feed in tariff is about 35 p (roughly 10 p for conventionally produced, solar PV gets 45 p or so) so that\’s £1,680 per household per year.
£16.8 million a year or, over the 25 year lifespan of the programme some £420 million.
Which is more like £42,000 per household which isn\’t a good deal at all, is it?
Yes, I know, I\’ve ignored NPV, inflation, interest rates and all.
But there is the catch. It\’s not costing £100 million, it\’s costing multiples of that.