Beware of 'Cost' of Free Electricity
Homeowners are being warned about companies
offering to install ‘free’ energy saving schemes - schemes that can
end up costing thousands of pounds.
Energy experts say that some companies are
advertising to erect free solar panels – they claim they will
provide free electricity, but in the long term they may cost
homeowners thousands of pounds in lost income.
Under the government backed ‘Clean Energy
Cashback’ scheme, householders can receive an income from
generating electricity from sunlight through solar electric
panels. Under the scheme, the power generated can be used
free of charge in the home - saving on the electricity bill – with
any unused electricity sold back to the national grid. The
payments are index linked and guaranteed for 25 years.
A typical small installation will give an
income of about £680 a year, and save around £100 a year on
electricity costs. The installed cost of a system giving
these savings can be as little as £6500 – with the costs recovered
in eight to nine years. After that time the income will be
about £13,000.
“Many of the organisations offering to install
these panels at no cost take all the income from the system,
leaving the homeowner with only the benefit of savings on their
electricity costs,” said Peter Bridgstock, Home Energy Efficiency
Programme Coordinator.
“Clearly, this arrangement will suit
households where they find it difficult to find the initial cost,
but in many situations will leave the homeowner severely
disadvantaged.
“We want homeowners to be aware of how the
scheme works and that some companies will be making money from
their home.”
Homeowners can get free impartial advice by
contacting the Energy Saving Trust advice centre on 0800 512 012 or
advice@est-nyh.org.uk
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