Solar panels make a lot of sense as a way to reduce your electricity bills – if you live in a climate suitable for generating electricity from the sun all year round.
But in the UK, it is hard for anyone to benefit from solar panels as the upfront cost will almost always outweigh any savings.
In the UK, you see adverts for solar panels for your home – “never pay an electricity bill again”. “The power companies will pay you” and so on.
Emails, text messages and worst of all – doorstep sales men and women to convince you that installing solar panels on your roof will can save you a fortune and end the need to pay electricity bills.
They realise that most people cannot afford the upfront costs of £8,000 – £12,000 for purchase and installation of the solar panels, so they work with loan companies and offer you loans to cover that.
BUT, the loans are not cheap and although the solar panels can reduce your electricity bills during the summer months, the cost of the loan outweighs that.
People find they are trapped in probably a 10 year loan and rather than benefitting financially from the installation, are having to pay more than ever.
If you live in the UK and want to consider installing solar panels, then do check the figures very closely and factor in loan costs.
Have you fallen for the sales pitch or know someone who has? Let me know.