Nobody should expect cheap energy
Last updated on June 6th, 2017 at 01:02 pm
“The Conservative and Lib Dem government has labelled itself the greenest government’ and has made green energy the focus of the U.K. economy.”
In today’s world, in which not only the United Kingdom, but governments globally, who are all coming to terms with the end of cheap energy and an economy borne on the strength of cheap energy, are now struggling to re-spark growth.
The banks may have stalled the economies of the world, but it’s the high prices of basic commodities such as food, water and energy, no longer in plentiful supply, which will strangle future growth.
Nowadays there are few things in today’s world which function for a very long time.
Even £30,000 cars are only expected to last 15-20 years, but amazingly, there is a technology which has a standard life of 30 years plus and rather than depreciating like a car, investing in it actually earns you money in excess of what you paid for it.
The benefits don’t stop there, although when you consider the increase it makes to your property value and savings on your future energy costs. Never before in history has this ever happened.
Welcome to the world of solar panels.
Installing the new generation of green technologies, such as solar panels or heat pumps, is a fantastic way to shield your family from future high energy costs and also earn revenue from the power that they generate under the current feed-in tariff scheme.
Relying less on costly fossil fuels and stimulating the economy through new technologies is exactly what governments around the world are doing right now and so should we.
The current feed-in tariff rate available to new adopters of PV solar panels, for example, is 15.44p per kWh which is in excess of the 12-14p per kWh you currently buy your electricity for. Solar heating panels can also earn you 8.5 pence per kWh, instead of using an expensive oil-fired boiler to warm your home.
Stuart Lovatt, the founder of Heat my Home, adds “I would go so far as to say there are no disadvantages to this type of technology-it’s a win-win situation, not only for you and your home, but for the wider economy and the environment”.
If you can afford to invest in this technology, then you should go ahead, while the feed-in tariff scheme is still at its highest rate. As more people jump on the solar bandwagon, the less late adopters will receive from the feed-in tariff, so maximising your return on this investment does require you to install within the next 12 months.
If you cannot afford solar panels today, then there is good news on the horizon, when the government introduces a Green Investment Bank next year– a state funded, but independent bank, which will give interest-free loans to investors in low-carbon technologies (solar panels and heat pumps) to aid the rapid adoption of a lower carbon infrastructure.
However, the only downside to this loan option will be the lower feed-in tariff rate instead of the normal interest rate plus when everyone suddenly wants solar technology at the same time, the Chancellor has indicated a step-by -step reduction in the tariff for later applicants.
Mr Lovatt concludes “We at Heat my Home have always advised that if you can install sooner rather than later, you will gain the maximum return on your new investment. As the world grows more and more competitive over energy, it will have to find ways to reduce dependence on it. Solar panels won’t replace oil and gas, but they will fill in the gaps.”
"Feel the pride."Stuart Lovatt September 26, 2011
Founder of Heat My Home.