Solar PV feed in and pension annuities

[David WE Roberts]

Just wading through solar PV again.

One thought - the model seems vaguely similar to a pension annuity in that you surrender some capital and then get a guaranteed index linked income.

Only a very shaky analogy because apart from anything else it assumes you will stay in your current residence for the rest of your life (or at least the 20+ years predicted life of the array).

However an investment of £11k should yield around £1,300 a year indexed linked. Shame I can't get that kind of yield on a pension fund!

The illustrations don't seem to do the kind of comparison you would get from a financial adviser - i.e. how much you could expect an investment of £11k to be worth in 10 years.

However it does seem to be relatively easy money if you won't need to get your capital out in the next 10 years and expect to live (and be) in the same house for the next 15-20 years.

Seriously considering shoving my snout in the communal trough.

Cheers

Dave R

[Bob Minchin]

At the moment there is possibly no low risk investment that will give you any real growth on capital so for simple sums you could consider the buying power of your capital to styay the same. NSI have just launched index linked saving certificates which will give

0.5% real growth over inflation for 5 years. Your capital will grow by 2.5% ish in 5 years You may or may not be able to buy a similar investment in 5 years time. Lets say you can - then the growth would be 5.1% over 10 years

hth

Bob

[Man at B&Q]

As well as political uncertainty (will they drastically alter the payments for existing installations?), it's the "20+" and "predicted" that are the real issue. If you believe them, then fine. Otherwise, how much do you need to allow for maintenance and repairs?

MBQ

[hugh]

In message , Man at B&Q writes

See Which? Report on dodgy sales tactics and exaggerated returns and concealed maintenance costs e.g. life expectancy of inverter etc etc. Failure to take account of roof orientation and shade. All counties treated equally regarding hours of sunshine.