We are all aware that installing solar panels on our homes is both good for the environment and good for our finances. With around 120GBP each year saved on electricity bills and around 800GBP a year from selling the electricity back to the grid, you can expect to make thousands over the life of your panels.

But not everyone has the estimated 12,000GBP required to install panels in the first place. This is where free solar panels companies come in. They will pay for the panels and the installation and all they ask is that the homeowners let them take the money from the sale of the electricity. The yearly saving is still there for the homeowner to keep.

The supplier is paid for all of the electricity generated by the panels and the government has agreed to continue the scheme for 25 years. The company is therefore guaranteed to make their money back and the home owner gets the benefit of free electricity.

Sounds good? Well this is definitely one of those situations where you need to do your homework. What sounds like a great idea may not be perfect for everyone.

Positives

• Having solar panels will reduce your overall electricity bill and you will be making savings even though you have made no investment at all.
• The value of your home will improve as the panels and the scheme with the installer will remain even if you move.
• The installer will usually maintain the panels and take care of any associated costs.
• Homeowners can stay with their own electricity supplier.
• Electricity bills could be reduced by half if usage is carefully monitored.
• The scheme is guaranteed by the government to be in place for 25 years, so there is no risk of it coming to an end before the panels are paid for.

Negatives

• The home owner does not own the panels and most companies will not allow them to buy the system.
• After a few years, the price of the panels could be paid off, but the installer will still receive the profit for the length of the contract.
• Most installers will only accept your home if it has a south facing roof.
• You must allow the installer to have access to the panels and you cannot remove them once they are in place.
• It is possible that there will be other types of deals such as loans available in the future giving you the option of buying the panels yourself and retaining all of the profit.

These sorts of free solar panel schemes are very new and the long term implications are yet to be seen, but the fact that more people who would not otherwise be able to afford to have solar panels can now get them, has to be a good thing. Even if the only benefit is that it improves the carbon footprint of the country, then these free solar panels companies are doing us all a favour.