No Deposit Interest free option subject to status 36 monthly payments of £100 other flexible payment options available
Financial projections
The expected system cost including VAT is £3,600. The system is expected to generate 3273 kWh per year initially, decreasing gradually as the solar cells degrade. It is anticipated that 66% of the generated power will be consumed in the property, and the remaining 34% exported. Over the 25 year term of this financial projection the total generation is expected to be 76,906 kwh, of which 50,895 kWh will be consumed on site and 26,011kWh exported. After adjusting projected costs and benefits for inflation where appropriate, and applying a discount rate of 4%, the initial system cost of £3,600 is expected to be recouped after 9 years.
Bottom line Net Present Value
The total present value of future benefits and costs, using a discount rate of 4% per year, is £8,184. The cost of the PV system is £3,600. The net present value of the project is therefore £4,584. 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 12.4%.
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 9 years.