Financial projections, based on south facing roof with 30 degree pitch
The expected system cost including VAT is £4,900. The system is expected to generate 4910 kWh per year initially, decreasing gradually as the solar cells degrade. It is anticipated that 70% of the generated power will be consumed in the property, and the remaining 30% exported. Over the 25 year term of this financial projection the total generation is expected to be 115,371 kwh, of which 80,759 kWh will be consumed on site and 34,611kWh exported. After adjusting projected costs and benefits for inflation where appropriate, and applying a discount rate of 4%, the initial system cost of £4,900 is expected to be recouped after 8 years.
Bottom line
Net Present Value. The total present value of future benefits and costs, using a discount rate of 4% per year, is £12,725. The cost of the PV system is £4,900. The net present value of the project is therefore £7,825. A positive net present value is a good indication that the project is financially worthwhile.
Internal Rate of Return
The projected internal rate of return is 14.1%. Payback Period The table and graph below show the discounted costs for the project (including the initial capital required for the installation), against the total discounted benefits from income and savings on electricity bills. The cumulative discounted benefits become higher than the cumulative discounted costs after approximately 8 years.
No Deposit Interest free option subject to status 36 monthly payments of £136.11, other flexible payment options available