Get Solar Panels and beat unpredictable energy price rises
Thursday 19 January 2012
On Tuesday, Scottish Power became the last of the ‘big six’ energy providers - following British Gas, EDF, E.ON, Npower, and Scottish & Southern Electric (SSE) - to announce cuts to their gas or electricity prices by around 5% in early 2012.
Scottish Power has joined EDF and Npower in cutting their gas price by 5%, while SSE has reduced the cost of gas by 4.5%. E.ON and British Gas have cut the cost of their electricity by 6% and 5% respectively. None of the ‘big six’ have cut prices for both gas and electricity.
The gas and electricity price reductions will help to lower energy bills in the short term, but costs are likely to rise according to E.ON UK Chief Executive, Dr. Tony Cocker:
“Whilst we are pleased to be able to pass on this recent slight fall in wholesale prices, global energy prices will continue their long-term rise”.
The price cuts of around 5% also pale in comparison with the gas price rises of between 15% and 20%, that were announced by each of the ‘big six’ between August and November last year.
Taking both the price increases of late 2011 and the price cuts of early 2012 into account, household energy bills are still 10-15% higher than they were at this time last year.
With the cost of energy continuing to rise in the long term, one way to beat the increases and even lower energy bills is by investing in Solar Panels.
The energy that Solar Panels produce can be used for free, reducing the need to buy it from the national grid and avoiding future price rises.
Households with Solar Panels will also receive payments for each unit of energy that they produce through the Government’s Feed-in Tariff, regardless of whether it is used, paying off the cost of installing Solar Panels and providing a secure tax-free income.
The current payment is 21p for each unit of electricity generated for all Solar Panels installed before April 2012. This rate is guaranteed for 25 years and will move in line with inflation.
Based on a 2kWp Solar system, at a cost of around £6,000 to £8,000, this will give an estimated return of £513 per year and will recover the cost of installation in 13 years. This represents a lucrative Return on Investment of 7.3%.
Find out how much you could earn and save with Solar Panels, try the Feed-in Tariff Calculator.
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