Payback Time for PV systems
I have a quote for a system:
To install 12 180wp modules.
Total System Size = 2.16kWp
This will qualify for the 0kW – 4kW Clean Energy Cashback Rate of 41.3p per kWh
This gives a projected annual yield of around 1845kWh
Predicted carbon savings 1 tonne annually, or 25 tonnes over the 25 year design life (0.54kg Co2/kWh)
Net Total £9,714 (plus scaffold access, if required)
VAT (@ 5%) £486.00
Estimated Annual Benefit: £933.60
Estimated Return on Investment: 9.15%
Estimated payback period: 10.92 years
Nett Price per kWp installed: £4,722
Our assessment of the rates for the proposed installation is:
G Tariff = 1845kWh x £0.413 per kWh = £762.00 p.a.
Given the average level of electricity use during daylight hours, and the size of the proposed system, we have made the assumption that 70% of the generated electricity will be used on site:
A Tariff = 1845kWh x 0.7 x £0.12 per kWh (Based on an average cost of 12p/unit) = £155 p.a.
E Tariff = 1845kWh x 0.3 x £0.03 per kWh (Export tariff of 3p per unit) = £16.60 p.a.
T Rate or total estimated benefit from system = £933.60 p.a.
Estimated Return on Investment = 9.15%
Anticipated Capital Cost Payback period = 10.92 years
Does that make sense?