Solar Power For Your Home

Transcription

1 Solar Power For Your Home Choosing and installing the right technology explained By Stuart Burford Published by Solar Panel Choices

2 Contents Introduction 1. Solar Panels Explained Solar panel technology Is your home suitable for solar panels? All about installing solar technology 2. Solar Photovoltaics Explained How solar photovoltaics work Installing a solar photovoltaic system Solar photovoltaics pros and cons 3. Solar Thermal Explained How solar thermal works Return on a solar thermal investment Installing solar thermal technology 4. Are Solar Panels A Good Investment? Maximising your solar photovoltaic investment Maximising your solar thermal investment Paying for your solar panels

3 5. Free Solar Schemes All about rent-a-roof Pros and cons of rent-a-roof Who should consider rent-aroof? 6. Installing Solar Panels Your mortgage and home value Finding an installer What to ask your installer 7. Jargon Explained

4 Introduction This guide is aimed at helping homeowners who may be considering investing in solar technology to find out more about the technologies available, as well as the current marketplace, potential savings and cost of the technologies. What is this guide about? Included in this guide are various sections to help you make decisions about the type of technology that is right for your home. As well as describing each technology in detail, this guide includes buyer guides to help you find the right installer for your project, and useful sections on the questions you should be asking the installation company. How to use this guide This guide has been designed to be a perfect solution for people interested in solar, no matter how much existing knowledge you already have. Simply select the section that interests you most and if you need to read more on a particular subject, the in-built hyperlinks will direct you to further information in the guide. Dip in wherever you like and use the handy signposts to help build your knowledge on the subject. As well as links to other places in the guide where you can find more useful information, you can look out for this sign (Image) where you will be linked to tips and independent information online. Don t forget... The renewable energy market is constantly changing. New laws are introduced, different grant and funding streams may become available and technology can change and be updated regularly, so before signing up to any contract you should always check the details and make sure you understand what is available to you.

5 Chapter 1 Solar Panels Explained *************************************************************************** In this section: Solar panel technology Is your home suitable for solar panels? All about installing solar technology ***************************************************************** Light and heat from the sun affects the whole planet. Harnessing solar energy to power our homes is just one sensible way of capturing the immense amount of energy our sun generates to reduce our reliance on polluting fossil fuels. Solar power offers significant financial savings to homeowners while making homes greener and generally improving our environment. With the current Feed In Tariff (FIT) guaranteeing annual payments for 20 years, investing in solar energy is an effective way for investors to grow their money. The majority of homeowners choose to install solar panels on the roofs of their homes, but this is not the only way to capture solar energy. If your roof is too small, obstructed or faces the wrong way to fully benefit from solar energy, fit panels on a wall, on racks in the garden or even to a nearby outbuilding. With a little creative thinking, most homes in the UK can benefit greatly from solar power. For those wishing to invest in renewable technology for their home, solar power offers a highly attractive low investment, high reward solution. Solar panel technology Most people see big, unsightly panels on roofs when they imagine installing a solar energy system. These solar panels are designed to use liquids or chemicals to capture the energy transmitted by the sun, and to convert this energy in to a commodity which the homeowners can tap in to. This is called active solar power. Two types of solar panel are available: Solar thermal (heating)

6 Solar photovoltaic (electricity) Solar thermal panels convert the energy from the sun to heat liquid inside the tubes, which goes through a heat exchanger, to make hot water for the home. These panels are fairly discreet, with about 1m 2 of roof space required for the basic panel set up. They are available as flat plate collectors, which look like big rectangles, or as evacuated tubes, which look like a row of transparent drainpipes. As well as the panel, homeowners need to install a large thermal store - a large hot water tank, which generally goes out of sight in the loft. For more information on solar thermal heating, see solar water heating on page xxx Photovoltaics (PV) take energy from the sun in a chemically infused panel to generate electricity. The set up is simple, as once the solar panel is installed, the electricity generates automatically. As well as the panel, install an inverter, which changes the direct current (DC) electricity from the PV panel in to safer alternating current (AC). The size of these panels really depends on cost, the amount of electricity required available space. Each panel is around 1.2m 2 and most homes need four or five to produce any significant amount of energy, but providing you have the space, the number of panels you can link is not capped. For more information on PV see the comprehensive section in this guide on solar photovoltaics on page XX Other types of solar energy Renewable energy technologies are not the only way to harness the sun s power. Homebuilders are looking more at intelligent building design, which makes the most of the free energy from the sun by including eco-friendly features, like south facing windows or conservatories to capture the sun s heat or sun pipes that direct the sun light from the roof down to darker rooms on the ground floor. This solar energy is called passive solar power. Keeping your home bright and warm for free Make the most of the sun s energy for free by opening curtains as early in the day as possible, and closing them to keep the heat in once darkness sets in. If you are planning home improvements, make the most of the opportunity by grabbing passive solar power by changing the orientation of windows to take advantage of natural daylight and warmth from the sun. Include as much insulation and draught proofing as you can to keep the warmth of the sun inside the house for longer.

7 Keep windows clean and unobstructed to enjoy natural daylight to avoid switching on the lights during the day. Costs and grants Solar PV costs an average 7,700, and is eligible for the government s Feed In Tariff (FIT) grant. For more information on this see the section on the Feed In Tariff on page xx Solar thermal costs between 3,000 and 5,000 for a home system and attracts a 300 premium payment under the government s Renewable Heat Incentive (RHI) grant. For more information on this see the section on the Renewable Heat Incentive on page xxx Is your home suitable for solar panels? Most UK homes are suitable for one or other of the solar panel types, but to help you decide if they are right for you, here is a quick checklist to see at a glance if your home is suited to this type of technology: Orientation South facing roof space is best for solar, but roofs that face South East and South West are also fine. Don t forget options to mount panels on walls, outbuildings or in the garden if you have the space. Space For photovoltaic solar panels (PV) you will need around 10m 2 of space that is unobstructed by vents, chimneys and skylights. For solar thermal you will need around 4m 2. Obstructions Roofs that are highly shaded by trees or other buildings are not good for solar. Try to find a space where the sunlight can hit the panels for the majority of daylight hours. Peripheral equipment For solar thermal you will need a water tank. Ideally put this in the loft, but if you have the space, an airing cupboard, utility room or kitchen serves just as well. Benefit Space and cost are not the only solar energy considerations. Think about how the energy generated will be used. Hot water stored in a well-lagged tank is available throughout the day. If you stay at home all day, you are likely to gain the most from generating solar electricity, but being out during the day doesn t mean you will not benefit, as you will be able to store energy in batteries. Remember selling on your power will bring in some extra cash from the Feed In Tariff. This can offset the cost of electricity you buy, and may leave you with a profit For more information on this see the section on Feed In Tariff payment on page xxxx

8 Before installing solar technology Spend some time researching your solar project to ensure your home is as energy efficient as possible before calling in the installers. Don t cancel out the benefits of generating cheap and eco-friendly electricity by wasting any energy saved through building inefficiencies. Look at improvements like; Cavity wall insulation Loft insulation to at least 230mm deep Double glazing Replacing old light fittings with energy saving fittings Upgrading your boiler Fitting radiator thermostats The Energy Saving Trust, an independent government-funded agency, reckons energy saving measures can save the average homeowner around 280 a year. TIP: Grants and subsidies for insulation and boiler replacement are often available both nationally and locally, so check if you can get some financial help before starting any work.

9 Chapter 2 Solar Photovoltaics *************************************************************************** In this section: How solar photovoltaics work Installing a solar photovoltaic system Solar PV pros and cons ***************************************************************** Solar photovoltaic (PV) panels convert energy from the sun in to electricity to power the home. Solar PV does not need endless hours of bright sunshine to work effectively. Although more electricity is generated on a bright, sunny day, the panels still work well on cloudy days and are suitable for the majority of UK homes. PV performance suffers when panels are shaded by trees or buildings, and they require orientation within 90 degrees of south to work well, so bear this in mind when considering if this technology is suitable for your home. How solar photovoltaics work Photovoltaic technology has been around for many years and you probably have some examples in your home already. For instance, many calculators have built-in mini solar PV panels which recharges the battery whenever the unit is in daylight. Solar lighting is also widely used in gardens. Solar PV panels for the roof are just scaled up versions of this technology and are quite simple in the way they work. TIP: As well as for use in the home, solar PV can be highly beneficial to people needing to power an off grid outbuilding or shed. The most complex part of a solar PV system is the panel, which is composed of a layer of semiconducting material sandwiched between protective glass on the top and a polymer resin base. When sunlight hits the panel, the particles in the semiconducting material become agitated and produce electricity. This current is transmitted to an inverter, which is a box of electronics usually kept in the loft, which converts the direct current in to alternating current to power the home. Because solar PV panels do not have any moving parts, little maintenance is required. Over the 25- year of the life of the panels, they may need the odd clean but little other attention.

10 Different types of solar PV panels There are four variations of solar panels: Monocrystalline Polycrystalline Hybrid Amorphous silicon All these materials are essentially just different silicon semiconductors and work in a similar way. The main differences are in the way the silicon is treated and cut, which can make a difference to the user in terms of the efficiency of the panels in the final system set up. As a rule of thumb, polycrystalline cells are the cheapest option and generally return in the region of 11% 15% efficiency. Monocrystalline is a step up in price, working at around 13% 17% efficiency. The most efficient and most expensive solar panels are hybrid and amorphous silicon variants, which use combinations of materials to push efficiency on even further. These top of the range panels often surpass 17% efficiency, but are significantly more expensive than other panels. You don t need to be an expert in PV panels to make the right buying choice. As long as you know panels differ in quality and efficiency, then you know exactly what you are paying for. Remember, some lower-end polycrystalline panels are less efficient than the higher-end monocrystalline versions, so avoid overpaying for poor quality materials by investigating panel efficiency and construction materials. For more advice on asking questions of your installer, see the section on installing solar panels on page xx Solar PV systems part-by-part

11 Here are the main parts of a PV system and what each is for: PV panels Modules that convert sunlight into electricity. Each panel is between 1.2m 2 and 1.8m 2 depending on the brand. Each will produce in the region of watts of power. To generate a useful amount of energy, most householders install four or five panels on the roof of a typical home. This collection of PV panels is called a solar array. The inverter Electricity from solar power is a direct current (DC) unsafe for domestic use. Passing through an inverter converts solar power to an alternating current (AC) compatible with the household electrical circuit and appliances. Isolator switches Safety switches in the circuit before and after the inverter that cut off the electricity if the system develops a problem. Generation meter Performance monitoring is a key part of any solar power system. The meter keeps track of how much electricity the system generates in real time and how much is going to the grid. This gives the information to calculate any Feed In Tariff payment. Installing solar PV Installing solar PV is straightforward and should not result in any major disruption to a home. A system is generally installed and up and running within a day. In most cases, installers put up scaffolding for fitting panels on the roof, so make sure this cost is included in any quote and not an extra. Costs vary depending on the height and size of the roof. Installation involves removing roof tiles and fixing brackets to the rafters beneath for attaching the solar panels. As the panels are heavy and are fixed to the rafters, make sure the installer s surveyor checks the integrity of your roof structure when planning the installation. This is particularly important if the panels are going on top of tiles, as your roof will need to support the weight of the tiles and the panels. The alternative is an integrated system sinking the panel s flush to the roof directly on to the rafters by removing tiles. This reduces the weight for weaker roofs. Another option is retro fitting extra supports to the rafters beneath the tiles to spread the extra burden from solar panels. For more information see Installing solar panels on page xx Solar PV pros and cons Pros Many homes will be suitable for the installation

12 Sunshine is not necessary as modern panels work well in ambient daylight The average household can expect to save around 40% of their annual electricity bill Feed In Tariff income can be secured for 25 years Excess electricity generated can be sold back to the National Grid Cons Several panels covering a large area need installing to generate a reasonable amount of electricity Initial investment is higher than the cost of a solar thermal installation Efficiency is significantly affected by changes in daylight hours and shading Heavy panels need a robustly constructed roof Working out you solar panel savings How much you spend on installing your solar PV system depends on how much electricity you want to generate. You will often spot the term kwp in technical and marketing material. This stands for the kilowatt potential output of the system, for instance, the maximum generation capacity if every day was sunny with plenty of daylight hours. As a general rule of thumb, most households need a 3kWp system to generate enough power to cover between 40% 50% of their energy needs, and a system like this will cost in the region of 7,700. Each unit of electricity used, described as a kilowatt hour (kwh), costs on average 14p to buy from your supplier, although this will depend on the contract you have agreed. The average UK home uses 3,300 kwh each year, according to the Energy Saving Trust, so if half of this is replaced by the energy from your solar PV system, you will be saving around 1,650kWh per year, which at 14p per unit works out to a saving of around 230. On top of this saving, you can look forward to a payment from the Feed In Tariff (FIT) of around 16p per kwh produced. 1,650kWh produced each year would give a FIT payment of around 264 at current rates, bringing the total saving to just under 500 per year. These rates are subject to change, so check the level of FIT payments at the time of installation, as this is the rate that will be fixed as the payment level for the term of the contract usually 20 years. Even though you may not always be home to enjoy the free electricity you are generating, you can still do your bit for the environment. FIT includes an export rate, which is currently paid at a rate of 4.5p per kwh, so any electricity you send back to the grid will be reimbursed at this rate by your electricity provider, and that s on top of the FIT payment you already pick up for generating the energy.

13 Expect an investment in solar PV to give a tax free return of around 8% 12% of the initial investment each year. This rate is guaranteed by the government for 20 years, making PV a great choice not only for your home and your planet, but for your wallet too! Read more: Are solar panels a good investment? Page xx The Feed In Tariff page xxx TIP: With FIT payments for generation and export you can expect to get a return of 8% 12% on your initial investment, fixed for 20 years, which is far better than most interest rates offered by banks and building societies

14 Chapter 3 Solar Thermal Explained *************************************************************************** In this section: How solar thermal works Return on a solar thermal investment Installing solar thermal technology ***************************************************************** Solar thermal, or solar hot water, is a simple technique people have used for heating hot water for centuries. The technology may be 21 st century, but the scientific principle certainly is not. So how does the science work? Just place a dark coloured container of water in sunlight, and hey presto! After a while you have hot water. Other examples of this technique at work are free swimming pool heating by coiling the dark filler hose in the water and the trendily named solar showers at music festivals. These are just large, dark bags of water hanging in the sun with a showerhead. The same science is behind a more sophisticated home- based solar thermal which captures heat from the sun via roof-mounted panel filled with liquid. This heated liquid is piped in to a thermal store, were he heat is transferred to heat the water for domestic use. Solar thermal panels do not need bright sunshine to work effectively, as they will often heat the water to an acceptable level in ambient light, even on a cold day. A typical solar thermal system will produce enough hot water for around one third of the need of a threebedroom home, saving an average 80 a year on water heating bills. Solar thermal is probably the most accessible type of renewable energy for many homeowners looking to make a green investment with a low financial commitment. Solar thermal systems part-by-part

15 Here are the main parts of a solar thermal system and what each is for: Panels The most readily visible part of the system, and also referred to as collectors these are panels fixed to the roof of your home. The panels capture radiation from the sun, which heats liquid inside pipes within the panel. Consider at least 1m 2 of collector area per person, so a household of four would need 4m 2 of solar panels for maximum benefit. Heat transfer system A pump linked to a thermostat that circulates the liquid in the panels around the system to heat the water in the hot water cylinder. Hot water cylinder This is usually larger than those fitted in regular domestic hot water systems, to allow a greater volume of water to be heated by the panels. Allow between litres of water per 1m 2 of collector space. Most standard hot water cylinders are not compatible with a solar thermal system, which needs two heat exchangers inside instead of just one. This connects a secondary heating source, like an oil, solid fuel or gas boiler, to heat the water if the panel has not reached a high enough temperature or if the solar heated water has run out. How solar thermal works Roof -mounted solar thermal systems are flat plate collectors or evacuated tube collectors taking the sun s energy for conversion in to hot water. In a flat plate collector, the heat of the sun warms the liquid inside the panel In an evacuated tube collector, the sunlight generates the heat. Whichever solar collector the system uses, inside they have a series of tubes filled with a liquid, either water or an anti-freeze. This liquid absorbs the heat from the sun to warm stored water via a heat exchanger. Flat plate collectors the cheaper option. The dark rectangular panels absorb sunlight and transfer heat to pipes inside. Evacuated tube collectors contain transparent glass tubes that magnify sunlight and concentrate its energy on to liquid carrying pipes in the middle of glass tubes inside the panel. Evacuated tubes are more efficient than flat plates, so are often a better choice for people with shorter daylight hours in the north, but increased efficiency is reflected in the price. Flat plate collectors take up around 2.2m 2 space and weigh about 45kg each, while evacuated tube systems are slightly smaller and lighter - about 2m 2 in area and weigh in the region of 40kg each. TIP: Solar thermal works particularly well with underfloor heating Installing solar thermal heating

16 Installing solar thermal systems is fairly straightforward. Identify the best place to have the panel installed, which needs to be around 2.5m 2 of roof space free from obstructions such as vents, skylights and chimneys. Position panels away from shading on a roof or wall facing south for optimum efficiency, although any angle on the south side of east and west will is OK as well. The pitch of the roof should be between 20 and 50 degrees for optimum efficiency, and the closer to 35 degrees the angle is, the more efficient your system will be. If your panels are being fitted to a flat roof, or a roof that is particularly shallow or steep, the installer will adjustments an A-frame during the fixing process to correct and optimise the angle of the panels. Installers may need to use scaffolding to install your panels, so check at the point of survey whether this is the case and if so, make sure the cost is included in your quote. The installer will tie panels to the rafters beneath the roof with stainless steel. These protrude slightly above roof tiles and are bolted on to the panels above the tiles. The disturbance to your roof and tiles should be minimal, but check for accidental damage to your tiles before signing off the job. Installing the hot water cylinder is quick and easy if you already have one it s simply a matter of swapping one for the other. If not, some pipe work is involved to connect the new system to the existing hot water feed. Solar hot water - Pros and cons Pros Solar thermal can provide between 35 50% of a households hot water needs This translates to savings of between per year (source: Energy Saving Trust) Maintenance costs are low, with the only the pump needing regular servicing Solar technology is a permitted development in most places but check with your local council whether planning permission is required Claim your 300 grant from the Renewable Heat Incentive (RHI) Premium Payment Cons Homes will still need an electric immersion heater or boiler to bring hot water to full temperature Electricity is needed to run the pump, which cancels out around 8% of the energy savings (source: Energy Saving Trust) Performance can fluctuate greatly depending on the weather The installation does not generate electricity

17 Homes do not get a return on excess hot water Return on solar thermal investment With a low initial outlay, typically from 3,000 to 5,000, solar thermal can seem like a great choice for first time renewable energy investors. However, with relatively small savings in the region of per year, the time it takes for the installation to pay for itself, also known as the payback period, can be fairly long. Even with the 300 currently available to householders under the RHI Premium Payment grant, the return on investment can be as long as 30 years. However, when considering the return on investment of any renewable energy system, factor in future price rises in fossil fuels. The price of domestic gas, for instance, has more than doubled in recent years. If that trend continues, the owners of a solar thermal system would find their payback period would decrease substantially. Solar thermal is not yet eligible for funding under the government s Renewable Heat Incentive (RHI) for domestic consumers. This scheme has already launched for commercial customers and is due to launch to the domestic market in 2013, when technologies that generate clean, renewable heat will be eligible for annual payments based upon the amount they produce, similar to the Feed In Tariff scheme for electricity generating technologies. The proposed level of payment for solar thermal is currently 8.5p per kwh produced, fixed for 20 years, and although this is subject to change until the scheme actually goes live. The good news is that any schemes commissioned after April 2011 will be eligible to jump on board with the RHI scheme, so there is no need to wait until the grant is live to start enjoying the benefits of the technology. Should the scheme go ahead with the current proposed level of funding, households could be enjoying an additional per year on average in RHI payments, which will significantly reduce the payback period of this technology and make solar thermal one of the best ways to invest in your home available today. See Renewable Heat Incentive on page xxxxx for more information

18 Chapter 4 Are Solar Panels A Good Investment? *************************************************************************** In this section: Maximising your solar photovoltaic investment Maximising your solar thermal investment Paying for your solar panels ***************************************************************** Calculating a return on investment needs to take both the financial and environmental consequences of installing solar panels in to account. For the money-minded, a cost benefit analysis delivers the figures that make the installation feasible. However, this does not take the environmental benefits in to account and to many, these are priceless. Solar technologies have been confined to commercial customers and those with the money and desire to protect the environment. This is changing with subsidies that are reducing payback periods. These subsidies are pushing up demand and driving down prices, putting solar technologies within reach of many more consumers. The main subsidies are the Feed In Tariff and the Renewable Heat incentive. The Feed In Tariff (FIT) The government s FIT funding has given rise to a new impetus amongst homeowners to install solar photovoltaics. With the current rate set at a healthy 16p/kWh generated, an investment in solar PV sees the majority of householders enjoying between 8 and 12% return on their investment, which is a significantly better return than leaving money in the bank. Here are the key points about FIT that any prospective solar PV investor should know: The rate is subject to each year, but the rate in force when your system is commissioned is guaranteed for 20 years. FIT applies to systems installed after July 2009.

19 Everyone who has installed solar PV is entitled to claim FIT payments, as long as the capacity of the system does not exceed 5 megawatts. As well as householders, farmers, businesses, schools and community buildings can all claim under the same terms, as long as the capacity limit is not exceeded. Payments are based on the output of your system, which is calculated by a meter installed by your solar provider. One important point is that energy efficiency of the property needs to be good before the system will become eligible for FIT. This specifically means that the property must achieve an energy rating of A D on assessment for an energy performance certificate (EPIC). This may mean extra heat conservation work is needed, like insulating cavity wall s and the loft prior to commissioning your system. FIT pays the householder in three ways: 1. The generation tariff - Currently 16p/kWh for each unit of electricity generated. 2. The export tariff - Paying a fixed rate for each unit of electricity sent to the National Grid. 3. Reduced energy bills - Because you are replacing bought energy with self-generated power, you will pay less for electricity. A typical solar PV system of around 3kWp could earn 400 a year from the generation tariff, 50 a year from the export tariff and 90 a year from reductions in energy bills, making a total of 540 per annum income (source: Energy Saving Trust). Your installer must be registered with the MCS (Microgeneration Certification Scheme) for your installation to qualify for FIT For more current FIT rates,, see the Department of climate Change website or Energy Saving Trust advice page The Renewable Heat Incentive (RHI) The Renewable Heat Incentive (RHI) is the solar thermal heating equivalent of the Feed In Tariff scheme for solar power generation. RHI pays 300 to qualifying households, but the rules are due to change probably in April when a proposed payment of 8.5p/kWh is expected for heating hot water. Realistic projections

20 When reviewing quotes and installers, be wary of salesmen who over inflate the potential savings and benefits of the technology. In a survey by Which? Magazine, 10 out of 12 installers inflated their estimates of savings from solar technology, and several breached industry codes of conduct with underhand sales techniques and high pressure tactics. Read more about this and how to choose a good installer for your system in installing solar panel on page xxxx Maximising your solar photovoltaic investment A realistic estimate for a typical household is that around half the energy generated from their solar PV will be used in the house. Obviously the more of your own energy you consume the better, as you will still pick up 16p/kWh from FIT, while saving on average 14p/kWh on purchased energy. Here are some ideas for maximising savings: Set timers on washing machines, dishwashers and tumble dryers to come on during the day Use a cold fill washing machine, so your solar PV heats the water and not your the boiler Set immersion heaters to come on during the day so solar PV heats some of the hot water for you Consider investing in storage batteries to allow you to save some of that daytime energy for use in the evening Maximising your solar thermal investment Unlike PV, solar thermal assures 100% of the energy is consumed in the home, as the generated heat cannot be exported. However, this does not mean that all the energy is effectively consumed. Poor insulation, large distances between the panels and the tank and under use can lead to wasted heat. To ensure you maximise the benefit of a solar thermal panel, here are some ideas: Lag pipes both between the panels and the tank and between the tank and taps to minimise heat loss Maximise hot water cylinder or storage tank insulation to minimise losses Set appliance and system timers and pump controls to best effect Keep panels clean and free from dirt and debris Try to use hot water as quickly as possible, which might mean programming appliances to make the most of the daylight hours

21 Paying for your solar panels The cheapest and best way of paying for solar panels is in full on installation. However, if you do not have the cash to pay for your investment straight away, you need to treat this as any other major purchase and decide the cheapest way to borrow the money. Usually this will means remortgaging your home or taking out a personal loan to free up some cash There are plenty of tools online to help you find the most competitive loan offers, but do consider the interest rates attached to these and take the time to figure out if the money you gain from your solar panels will definitely outweigh the interest you have to pay on your loan. The other option to consider is the free solar or rent-a-roof scheme. For information on free solar, see page xxxx

22 Chapter 5 Free Solar Schemes *************************************************************************** In this section: All about rent-a-roof Pros and cons of rent-a-roof Who should consider rent-a-roof? ***************************************************************** If a deal sounds too good to be true and offers something for nothing, most people start looking for the catch. Someone came up with a bright money-making idea of free solar panels. The deal is simple. A company will install solar panels on your home and let you take as much of the generated energy as you need for free. In return, you waive your rights to the Feed In Tariff (FIT) payments. Whether these schemes are suitable for homeowners is the big question. All about rent-a-roof Search online for solar panels and sooner or later you will come across rent-a-roof schemes as an alternative finance option. The installers are investors effectively setting up solar panel farms and reaping the FIT tariffs. Rather than buying land for their panels, the companies lease roofs from homeowners for the 25-year FIT term. The company pays for the installation and lets the owner power their home for free, but they keep the FIT payments. The deal generally includes a repair and maintenance agreement for the term of the contract. Is rent-a-roof worth it? At first glance the deal looks good no upfront costs and all the benefits of solar technology to power your home, but those FIT payments could add up to giving away a lot of money over the years.

23 According to The Energy Trust, a 4kWp solar PV array sited in an optimal rooftop location could cut utility bills for the average household by around 5,000 over the term of the agreement but the lost FIT pay out adds up to almost five times as much at about 23,000. If you are considering rent-a-roof, look at the other options to finance installation before signing up. The small print A contract is binding once signed, so make sure you read the small print before putting pen to paper. Often, the terms and conditions are written by a lawyer in technical jargon and are hard to follow and difficult to understand for a layman. Some rent-a-roof contracts ban homeowners from making alterations to the property or selling to move without first asking the solar panel company for permission. For instance, reroofing your home or converting the loft in to living space would mean removing and resitting the panels that would lead to lost FIT revenue for the installer and a repair and maintenance cost. The contract might demand that you compensate the firm for lost revenue and related costs. Make sure the contract is absolutely clear about what your responsibility is and what is not. The key questions are: Who looks after repairs and maintenance to the panels and installation? Who insures the panels? What happens if you want to move home and the buyer does not want to carry on the rent-a-roof deal? What happens if you need to repair or carry out other work on the roof? What happens if the installation is poor and damages the roof? A 25-year contract is a long-term arrangement and unforeseen issues are bound to arise so read the small print and if you are unsure about what the jargon means, as an independent solicitor for advice. Paying a solicitor for an hour or two s work at the outset could save you much more in the long run. Pros and cons of rent-a-roof Pros Solar PV fitted to your home with no upfront payment Free electricity from the panels for your own use No responsibilities for maintenance or repair of the system

24 Cons No FIT payments Little benefit to householders who are not at home during the day Possibility of issues selling the house Possibility of restrictions to the modifications you can make to your home, or potential issues with removing the panels to repair your roof 25 year contract Whose money is it? The FIT money goes with the home where the solar array is fitted, so if you move on, the new owner benefits from the income. The payment comes from a small levy on energy bills paid by other consumers. By allowing solar panel companies to profit from this fund, the homeowner is losing out and money meant to cover the their investment and putting the cash in to the pockets of speculators. Who should consider rent-a-roof? There are some people who will see some benefit from the free solar scheme, in the main, these are: People who want solar PV but cannot afford the outlay People who have no intention of moving home during the 25-year FIT period People who have no intention of extending, modifying or upgrading their homes or roofs in the next 25 years People who are at home for most of the day to benefit from the free electricity The FIT payments for solar PV are changing. The government has proposed that the tariff be cut, possibly from April If this happens, the majority of the rent-a-roof schemes will disappear, as it will no longer be profitable for solar companies to give out free panels. If you think this scheme is for you, then it is advisable to thrash out a deal sooner rather than later, but for many the best advice is to look at alternative funding options so you reap the benefit from the FIT payment. For more information, see: Are solar panels a good investment? On page xxxx

25 Chapter 6 Installing Solar Panels *************************************************************************** In this section: Solar panel technology Is your home suitable for solar panels? All about installing solar technology ***************************************************************** So you have decided to go for solar panels for hot water or electricity and need to know what to do next. Before installation, a lot of planning is needed. Not only do you have to look at who you want to work with for the installation and what sort of panels best suit your lifestyle and home, but you must also make sure you comply with all the legal issues, like permission from the council and your mortgage lender. Planning permission and building control Planning and building control are not the same planning involves relates to the use, location and design of the building, while building control covers the technical aspects of construction. Just because you do not need planning permission does not mean your council will not send round a building inspector to check out your solar array installation. Most solar array installations do not need planning permission. Roof mounted solar is a permitted development, which means no formal permission is required and you do not have to notify the planning authority before going ahead. However, the majority of local councils will want to check the installation complies with building control regulations. The building inspector will look at the size, weight and forces exerted on fixing points, fixing points themselves, safety issues, noise, ventilation, and related electrical installation and plumbing issues relating to the solar array installation. Once the work is complete, the inspector will issue a certificate approving the work. When you come to sell your home, the buyer s solicitor will want to see a copy and the sale will not complete without the sign off.

26 Planning rules are subject to exceptions - for instance, if your home is listed, in a conservation area or part of a World Heritage Site, then speak to your local planners about the implications of fitting a solar array. In general, solar panels should only protrude 200 mm from the roof surface, so check your installation meets this criterion. If you live in Scotland, some extra planning restrictions apply that can put installing solar panels outside of permitted development rules: Installing panels on externally of a building containing a flat Installing panels within one metre of the edge of a flat roof If the panels protrude above the apex of the roof TIP: Local authorities have strict targets for reducing carbon output. Most will support your solar project providing your installation specification is within the rules Home insurance Many insurers will cover your solar PV or solar thermal installation as part of your normal building insurance without any changes to the policy or premium. Always talk to your home insurer before installation starts to check how solar panels will affect your premium. Tip: Tell home insurers when the installation is underway many policies have get-out clauses that let them avoid paying a claim if builders cause damage while working on your home. Tip: Make sure your installer has insurance that covers putting right damage to your property before they start work. Your mortgage and home value Solar panel technology and Feed In Tariff payments are still relatively new ideas and no one really knows how installations might affect home values. With energy prices increasing and more people wanting to live a greener lifestyle, the chances are your choice to install solar will not damage your chances of selling your home. In the USA, financial magazine Forbes claims the early indications are solar installations are adding to property values, rather than detracting from the selling price. Don t forget, the Feed In Tariff (FIT) is linked to the house, not the owner, so if you sell your home, the new owner will inherit the benefits of the FIT payments, without the financial implications of funding the installation. The Council of Mortgage Lenders (CML), the trade body for bank and building society home loan lenders, has issued industry guidance on lease agreements for solar panel installations. The guidance warns consumers that some lenders also have their own specific, additional requirements. Borrowers should include their lender in the discussions with the panel provider from an

27 early stage to address any issues about loan security and property valuations before any agreement is signed. The aim is not to deter people from installing panels, but to ensure that the lender s security is not affected by the arrangement. The guidance covers matters like: Installers obtain all necessary consents, including the lender s consent, before proceeding with any work Installation is carried out to an accredited standard; Panels are properly maintained, and that any fees for repairs or maintenance are no more than 60 per year Lenders can remove panels without charge if the property is repossessed during any lease agreement and the installation of panels is affecting attempts to sell the property, or the resale value No conditions affect the value, marketability or sale price of the property. The CML also confirms some lenders have rejected mortgages against some properties because solar installations flouted the guideline Finding an installer Prices can vary greatly between installers even when no discernible difference between products is obvious. The best way to buy is to forget the cost and look at the benefits of the technology and the firm fitting the solar array. Speak to three or four firms and compare their quotes and specifications against the same checklist. The starting point is what you want from your solar installation just hot water or energy independence or even an income from the feed in tariff? Independent research can help you work out the technical specification of the solar array you need to meet your objectives. Once you have this worked out, invite some quotes, but do not give the companies your calculations, just answer their questions and let them produce a spec and price. From this process, you can weed out the specs that do not fit your objectives. You should end up with two or three firms offering similar specifications and equipment within a narrow price band. The key is picking the best installation at the best price, not necessarily the cheapest or most expensive, but the one who can supply what you really want. To benefit from solar photovoltaic FIT payments, your installer must belong to the Microgeneration Certification Scheme (MCS). The official directory for MCS certified installers is at

28 Some installers also opt to join voluntary industry bodies like the REAL Assurance Scheme, which goes some way towards monitoring the performance and conduct of installer companies. Picking a solar thermal installer is a harder job. The Solar Trade Association (STA) has a listing of installers, but this is a trade body with good intentions but no power to regulate the competence of installers. Some are genuine professionals with a lot of experience, while others can just set up and call themselves solar thermal installers with little or no training. What to ask your installer When you installer comes to conduct the survey of your home, you should make the most of the time you have with them to find out a bit more about their company and the way they do business. Here are a few key questions to ask before signing any agreements: Many roofs need strengthening before installing solar panels - does your quote include a structural opinion? More than 50% of roofs fitted with solar panels needed reinforcing to support the weight of the panels. You need to be sure that your installer has considered and priced for testing structural integrity as part of the quote. If in doubt, you can ask a structural engineer to take an independent view of the technical specification. This is one area that will come under the scrutiny of the building control inspector. Is shading an issue? What shading analysis will be undertaken? If your survey is completed in the summer, the surveyor should consider shadows and the angle of the sun will change during the winter. A good installer should be able to undertake a computer simulation to check for performance throughout the year. They should be able to tell you: If and when shading will occur. If so, which parts of the array will be shaded and for how long each day The implications on system performance Ways to optimise installation to reduce the effects of shading Surprisingly low levels of shade can adversely affect the performance of a solar installation. Just 6% shade can lead to a 33% loss of efficiency, and can seriously inhibit energy or hot water generation from a small array.

29 Beware of installers trying to squeeze an extra panel near a chimney or dormer window, as a poorly sited panel can significantly affect the overall operation of the system. How will the solar panels be fixed to the roof? There are two main ways that solar panels can be held onto your roof. A bracket and rail system connected to the rafters to counteract strong winds getting under the panels and creating lift A click-fit system that involves hanging the panels on roof batons without any screws. The installation is quicker and easier for the company, but leaves you r home with an insecure panel setup. The system is in widespread use in parts of Europe, but here, roofs and buildings are constructed differently and no substantial testing of the technology has taken place in the UK. Who installs the panels? It might sound like a silly question, but actually a large number of solar companies in the UK are sales set ups that subcontract installation to other companies. This is not necessarily negative, but you do need to know who is responsible for snagging putting right post-installation problems and quality control. Are testimonials available? This is a double-edged sword. Of course an installer is going to give you details of satisfied customers but they won t tell you about complaints. Try the local trading standards office if the company has a bad reputation they might tip you off. What is the company history? What you really want to know is how long have they traded and are they competent? If they have an office, drop in unexpectedly and have a nose around. What warranties do you get with the system? The industry standard for warranties is 25 years for defects in solar photovoltaic panels with a 5- year guarantee against defects, while solar thermal panels generally come with 10-year cover. Although the panels are important, the inverter is the beating heart of the system, the one thing most likely to go wrong and one of the most expensive to put right if it does. Most inverters come with a 10-year guarantee and an option to pay more for an extended warranty. The installer should also guarantee their workmanship When to steer clear of solar companies