Feed-in Tariffs any drawbacks to solar panelling?

Q I am considering an offer from British Gas to install solar panelling on my house. The offer is very generous. There is no charge, a 25-year guarantee and all work involved is done by its employees. Is there any drawback to solar panelling?
A Yes, there are several drawbacks. Earlier this year (March 21) I answered a query about the Feed-in Tariff (FIT), whereby home owners generating their own electricity are paid for every unit of power they feed into the national grid. It is the FIT that makes photovoltaic (PV) solar panels worth considering as an investment, because it might earn the average PV panel owner about £900 a year. (Although, as I pointed out at the time, it would still take about 13 to 17 years for this income to compensate for the installation costs of some £12,000 to £15,000.)

Without the FIT payments, generating your own electricity from the sun is not such an attractive proposition. At the times when you most need to use electricity – that is, after dark – your PV panels won’t be generating any, so you’ll be paying for your power at the normal rate through your meter.

You get free electricity to use only when the sun is shining brightly and directly enough on the panels to generate a current. But that is chiefly in the summer, between 10am and 2pm, and with little or no cloud cover (with respect, not the most common conditions in your part of Britain). And, of course, at those times, you are unlikely to be using much electricity anyway.

You won’t have the lights on, you won’t be watching television because you’ll be out in the garden and you won’t be needing to heat the house. Possibly the only benefit you will get is free power for your fridge. The surplus electricity generated at these times will be fed into the grid, earning FIT money for the owner of the panels, which won’t be you because it will be British Gas.

The promotional literature from British Gas (and the other companies who are making similar offers) suggests that the average householder signing up for this “rent-your-roof” scheme will reduce their electricity bills by about £150 per year. However, many people will save much less. It depends how much electricity you use during those sunny periods. People who are out at work during the day, for example, will not see much benefit.

In return, by installing its PV panels on your roof, British Gas will be claiming all your Feed-in Tariff payments for itself. You will have to sign a contract leasing your roof and the air space above it to British Gas for 25 years, for no additional payment. The lease will be lodged with the Land Registry, and therefore legally binding. You will not be able to change your mind or remove the panels during the 25 years and, should you sell the house, the new owners will also be bound by the terms of that lease.

For me, this is a major stumbling block. I personally would be hesitant about buying a house with these unsightly black rectangles stuck on the roof and even more hesitant once I found that I wouldn’t even benefit financially from the surplus electricity they produced.

I’m sure there must be many other potential homebuyers who would feel the same way, and you might even find your house “blighted” by this 25-year commitment.

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