Beware of solar savings that do not exist
THE financial problems faced by readers who have bought solar panels (Money Mail) once again highlight financial illiteracy and a willingness to swallow ‘green’ propaganda. Feed-in tariffs for energy from solar panels have been nothing but a giant Ponzi scheme cooked up to ensure sufficient numbers signed up. It justified the transfer of funds from people who could not afford the outlay to those affluent and able to take advantage of highly lucrative returns, paid for in higher energy bills for all. The panels on my roof were installed and registered in early 2012 by a company that no longer exists. We negotiated a rebate on the price and this, added to an annual return of 20 per cent on the original investment, meant we recouped our expenditure within five years. We will continue to earn this, tax-free, until 2037. We are in this position because my wife and I sat down and did the maths. A major factor in considering the investment worthwhile was the fact that at that time, the Government had reinstated the full tariff. The exaggerated claims of savings on bills never materialised, though the income earned has covered some of our power bills. However, given today’s terms and conditions, our decision would be totally different. The current tariff, even over 25 years, would come nowhere near clearing the original outlay, even if claimed savings in power bills do materialise. The only winners in this scheme now are the manufacturers and installers who benefit from a gullible public.
BRIAN F. MITCHELL, Melbourn, Cambs.