Solar panels 'take 100 years to pay back installation costs'

A A A

Solar panels are one of the least cost-effective ways of combating climate change and will take 100 years to pay back their installation costs, the Royal Institution of Chartered Surveyors (Rics) warned yesterday.

In a new guide on energy efficiency, Rics said that roof panels for heating water and generating power are unlikely to save enough from bills to make them financially viable in a householder's lifetime. In the case of solar panels to heat water for baths and showers, the institution estimates the payback time from money saved from electricity and gas bills will take more than 100 years – and up to 166 years in the worst case.

Photovoltaic (PV) panels for power – and domestic, mast-mounted wind turbines – will take between 50 and 100 years to pay back.

Given that the devices have a maximum lifetime of 30 years, they are never likely to recoup the £3,000 to £20,000 cost of their installation, according to Rics' building cost information service. Instead, it suggested people wanting to cut fuel bills should insulate lofts and cavity walls, install efficient light bulbs and seal windows.

Joe Martin, author of Rics' Greener Homes Prices Guide, said there was an argument for installing solar panels but it was not an economic one. "We wanted to bring some reality to this because there are a lot of missionaries out there. The whole push for household renewable power is that you can do these things and make back money but that's not true on existing property," he said.

The solar power industry accused Rics of failing to take account of the rising cost of energy and other financial benefits of renewable power in its figures. Jeremy Leggett, of Solar Century, said: "They are grossly irresponsible."

Rics assessed the cost, annual savings, disruption and payback time of various energy-saving methods and gave each an overall rating of one to five stars.

Solar panels for heating and power and wind turbines generating between 3kW and 5kW merited two stars. Smaller 1.5kW turbines of the type installed on roofs paid back in 25 years, received a three-star rating.

By contrast, cavity wall insulation had a five-star rating: spending £440 would save £145 a year in fuel bills, paying back in three years, while an investment of £325 in extra loft insulation would save £60 annually, paying back in five years.

The figures were compiled before energy companies put up bills by up to 30 per cent last month and ignore state subsidies.

Last year, the Department for Trade and Industry slashed grants for the installation of household renewable power by 83 per cent, infuriating the fledgling micro-generation industry which complained the move rendered solar panels unaffordable to all but the wealthy.

Jeremy Leggett, executive chairman of Solar Century, complained that Rics' figures failed to assume any rise in energy prices, when a conservative estimate of 10 per cent a year would transform the calculations.

In addition, Rics had failed to take account of a number of other benefits – renewable obligations certificates worth £160 a year to householders from next year; reductions in energy consumption of up to 40 per cent for schemes with a meter; the rising payments from energy companies for spare electricity put back into the national grid; and the increased value of an energy-efficient home.

He estimated the current payback of power-generating PV panels was 13 years.

Rics countered by saying it had not taken account of maintenance costs and that it deliberately chose not to include "ifs" in its figures. "I doubt however you do the sums, they [solar panels] make sense," a spokesman said.

Suggested Topics
News
Jacqueline Bisset has claimed that young women today are obsessed with being 'hot', rather than 'charming', 'romantic' or 'beautiful'
people
Arts and Entertainment
Ben Affleck stars as prime suspect Nick Dunne in the film adaptation of Gone Girl
filmBen Affleck and Rosamund Pike excel in David Fincher's film, says Geoffrey Macnab
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Sport
Frank Lampard and his non-celebration
premier leagueManchester City vs Chelsea match report from the Etihad Stadium
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
News
people
News
i100
Life and Style
A new app has been launched that enables people to have a cuddle from a stranger
techNew app offers 'PG alternative' to dating services like Tinder
Sport
Greg Dyke insists he will not resign as Football Association chairman after receiving a watch worth more than £16,000 but has called for an end to the culture of gifts being given to football officials
football
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Sport
premier league
Arts and Entertainment
Rachel, Chandler and Ross try to get Ross's sofa up the stairs in the famous 'Pivot!' scene
tv
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave crime series
Sport
Mario Balotelli celebrates his first Liverpool goal
premier leagueLiverpool striker expressed his opinion about the 5-3 thriller with Leicester - then this happened
Arts and Entertainment
Female fans want more explicit male sex in Game of Thrones, George R R Martin says
tvSpoiler warning: Star of George RR Martin's hit series says viewers have 'not seen the last' of him/her
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Application Support Analyst (SQL, CRM, CMS)

£25000 - £29000 Per Annum: Clearwater People Solutions Ltd: Application Suppor...

SEN Teacher - Cerebral Palsy

£75 - £100 per day: Randstad Education Leicester: Randstad Education are looki...

Maths Teacher

£110 - £200 per day: Randstad Education Leeds: Secondary Maths Teacher for spe...

Nursery Nurse - Melton Mowbray

£7 - £8 per hour: Randstad Education Leicester: Randstad Education are current...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments