Solar panels better than a pension, says minister

February 4, 2014 by  
Filed under Wind Energy Tips

Prices for solar panels have fallen sharply in recent years. According to the
Department of Energy and Climate Change, the typical domestic installation
costs around £4,500, compared with £13,000 in 2010.

That means that typical rates of return on domestic solar panels are between 5
per cent and 8 per cent a year, government figures show.

Mr Barker said that makes solar power a better investment than some pensions.
Many pensioners buy a retirement income by investing in an annuity, a
contract guaranteeing them an annual income for life.

Returns on annuities have fallen in recent years, and typical products deliver
an income of around £6,000 for every £100,000 of pension savings.

Mr Barker said that those planning for retirement should think about putting
some money into solar panels instead of a traditional pension.

“Solar is a really attractive financial proposition,” the minister told The
Daily Telegraph. “You get a guaranteed tariff for 20 years and if your panel
is well-sited, it could yield 8 per cent or more. That is more than an
annuity, particularly if you are in your 50s or early 60s.”

He added: “Anyone considering retiring should seriously consider whether solar
panels are right for them, because in some circumstances, they will get a
higher return than from putting the money into an annuity.”

The minister’s financial argument is part of an attempt to improve the image
of renewable energy sources, which are unpopular with some voters and many
Conservative MPs.

Official figures showed last month that 499,687 domestic solar schemes had
been installed, Mr Barker said the total has since passed 500,000.

- For those who have already saved:
Six funds to pick for retirement income

- For those who want to start saving: How
to retire early on a DIY pension

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