The amount of money you can actually net back to yourself as income and not “savings” from a four kilowatt solar system depends on what part of Britain you live in, the subsidies from the government that you qualify for and complete the paperwork to get, the rates that electricity companies pay you for the excess electricity that you generate, and how much sun your solar system is exposed to through the year. The amount of money you can make also depends on how well you maintain the solar system.
Each region of Britain differs in the Feed-in Tariff that applies to your four kilowatt system. There is also a time factor that depends on when you installed the system and how long you have been operating a solar electricity system. You must register the system with the government to get the tariff.
Typically in England and Wales you can expect to get £770 a year by selling electricity that your solar system generated. In Scotland the average return is £647 if and only if you sell all the electricity you generate from your solar system. In Northern Ireland expect to get £750. The amount you get back is an annual average and may vary year to year.
The installation cost of a four kilowatt solar system averages about £6,500. The system can pay for itself in about nine years if you sell all the electricity you create from the sun back to the electricity company and the government.
Every region of Britain is eligible for a Green Deal loan from the government that can cover as much as 32 percent of the installation costs of a four kilowatt solar system. You do not have to pay back this portion of the loan. The grant reduces the cost of the four kilowatt solar system by £2,080 so your cost is £4,420 and you can pay the cost off in six years if you sell all the electricity you generate.
Most people that install a solar system will use some of the electricity and sell some back to the government. The average returns if you use the electricity you generate is £512 after you pay the interest on the loan. The system will pay for itself in about nine years and then the £512 is income.
You must understand that these are average estimates. The amount of electricity that you can generate from a four kilowatt solar system depends on what part of Britain you live in. The amount of sunlight and the number of days of sunlight that your solar system is exposed to has a significant impact on the savings that you will see and the income the system can generate for you.
On average, regardless of what part of the country you live in a four kilowatt solar system will produce about £292 per year in real earnings after all costs, all loan payments, and all installation costs.