We advise a full costing for potential installs based not just on the current rebate from the government but the likely future rate which could be a little over 21p per kwh compared to 43p today. That could mean a significantly longer payback time for your solar photovoltaic installation.

The government is currently seeking permission to appeal in the supreme court. So there is a great deal of uncertainty over the future of FIT payments and will no doubt continue to seek reductions in fit payments to householders.

However, for those who have not yet installed but want to, there is the opportunity window that many have been hoping for. Plus the expected decline in the market has forced done solar installers to slash panel prices.

Burton Road in Eastbourne sees an average 1,934.5 hours of sunshine in 12 months, an impressive 42.8% more than the 1,345.9 hour average.

The news was announced this week in The Telegraph after energy firm HomeSun carried out research to find out which areas had the most suitable homes for solar power.

With GMTV naming Eastbourne as the sunniest place on mainland Britain on national TV last summer, the latest news comes as a further boost to Eastbourne’s top sunshine status.

Eastbourne Borough Council Cabinet Member for Tourism and Leisure Cllr Neil Stanley said “What fantastic news to hear more evidence of our brilliant sunshine status! We have already been told we’re officially the sunniest place in the country but to hear we also have the sunniest street in Britain with sunshine hours way above the average is great news and yet another reason to visit our beautiful town. Summer might be over in the rest of the country but in Eastbourne, I’m sure we still have plenty of sunshine hours to look forward to over the coming months!”

BBC weather forecaster Michael Fish, who lives in the town, told the Daily Telegraph that the shelter of Beachy Head gives Eastbourne a unique microclimate meaning year round sunshine.

What we can be sure of is solar can still save you money, but the payback economics have changed somewhat from before where the payback period may have been shorter. However, solar install prices are likely to get even keener as businesses struggle to remain in business ensuring that some quotes will be exceptional value for money.

We advise all our readers, to do only one thing: Calculate, and Calculate again. You should take as many quotes as possible to ensure that you fully understand the economic position that installation will put you in. By this, you must look at the total payback period – i.e. the period it will take to get your full investment back.

You can annualize this payback time to calculate an effective payback rate. This is rather like saying after e.g. 8 years the system will have paid for itself fully and the system will be generating essentially pure profit for the home-owner. We have seen plenty of double digit payback rates over the years…but we think anything over about 6-7% is still rather good. Where that point of purchase lies is absolutely up to you, but look at other investments to gauge where you think you should be.

The much acclaimed feed in tariff that encouraged many to invest in solar energy for their homes and small businesses has been slashed by the government to 50% of its original level. Many home-owners have been taking advantage of these quite generous subsidies which have often given returns on UK installed solar systems of around 10%, a figure considerably higher than that obtained by putting money in the bank. Those with capital and a green inclination have been flocking to install solar panels on their roofs making returns better than just about any other investment that one can even dream of.

The Feed-In-Tariff or FIT was due to be slashed on the 12th of December, but has met increasing resistance from a number of paries including Friends of the Earth who are deeming the proposal illegal. There is now confusion in the solar industry as to what the FIT will actually be and where this leaves home-owners.

According to the energy savings trust the previous FIT scheme paid 43.3p/kWh returning annualized savings of around £1,240, however the new scheme will pay 21p/kWh generated and on the same typical 3kW system will return savings of around £670. This radically changes the payback dynamic, in going from the old to the new scenario. The old system saw payback time frames of around 8 years (the system fully paid for itself in eight years), but with the new scheme, that payback time is pushed to 15 years…a considerable difference. The typical 3kW system used for illustration would cost around £10,000 with full installation.

Before the end of 2011, there has been a huge race to get solar installations done before the 12th Dec cut-off date. However what will remain of the solar industry after this is anyone’s guess. From our perspective we see a huge number of job losses and we have already started to see “solar retail” outlets close in the preparation for the downturn. We don’t expect that the uptake in 2012 will be anything like that in 2011, unless the cost of installation per kW falls to 50% of their existing levels. This means that solar installers are going to be seriously hit in their margins and where it hurts because the cost of installing a physical solar panel is the same if that panel is 50% cheaper. Fixed costs such as scaffolding are going to make up the large proportion of the cost of installing and these are difficult to reduce without affecting the viability of the install.

So, has the government screwed this up? Yes, we think so! Even if it was offering a fabulous rate of return that seemed generous, it was helping to green the rooftops of the UK providing many with jobs and even an income. It provided an incentive to invest long term in Green energy and do the “right thing”. But the reduction of the FIT is going to potentially decimate the whole of the UK solar industry leaving many job less and out of pocket. What’s more, its sending out the message that the K simply doesn’t care one jot about Green Energy.

I’ve heard so many false financial breakdowns denigrating solar. But the numbers don’t lie, generating you own power can offer one of the most stable forms of investment, especially in this market. Don’t take my word for it, get a quote, work through the numbers and decide for yourself.

Many homeowners are turning to solar as a smart investment to beat rampant inflation which is driving down the value of cash in bank accounts.

Do consider getting a quote to see whether you might find that solar works as an investment for you and your family.

I’ve heard so many false financial breakdowns denigrating solar. But the numbers don’t lie, generating you own power can offer one of the most stable forms of investment, especially in this market. Don’t take my word for it, get a quote, work through the numbers and decide for yourself.