Solar Energy Sales Soar Among Homeowners

The number of homeowners investing in solar panels has soared since the Government introduced a cash-back scheme to pay for the electricity they generate.

Under the Feed in Tariff, introduced in April last year, 43p per unit is paid per unit of energy pumped back into the National Grid by domestic systems.

For Mike Law, from Saxmundham in Suffolk, it was a sensible investment for a lump sum he received as part of his pension.

"The main thing for me was saving the planet's resources but the Feed in Tariff was a big bonus as well. It was the incentive to go and do something rather than just thinking about it."

And with energy prices increasing in some cases by close to 20%, he is not alone.

Installations rocketed from 2,685 between April and the end of June 2010 to 14,285 in the same period this year - a rise of 432%.

Robbie Gawthrop's company East Green Energy is seeing inquiries growing weekly.

"It's a complete cross-section of people, people who are worried about increasing energy bills, and this is a way of genuinely reducing your electricity bill but also the Feed in Tariffs are guaranteed for 25 years.

"They are index-linked against inflation which means the payments will keep coming and rise with inflation."

Nearly 50,000 homes have had solar PV installed since the scheme was introduced.

Growing demand means the price is coming down. The panels are 10% cheaper than they were in January.

It can cost more than £10,000 to install the kit needed for an average home, so some serious calculations are needed to work out if the investment is worth it.

Ian Galloway spent £15,500 on his system and thinks it will pay for itself within 10 years.

"The early indications from the last quarter are that our energy bill for electricty is falling by over 50%."

From the beginning of August incentives are being introduced to encourage eligible homeowners to generate their own heat under the Renewable Heat Premium Payment scheme.

Run by the Energy Saving Trust, it will offer grants of as much as £1,250 for systems such as solar thermal panels that create hot water.