A blog post

Investors told forget savings accounts, think of shares – or solar?

Posted on the 15 December, 2010 at 7:06 pm Written by in Blog, Finance, Fuel prices, Government

According to the Daily Telegraph, Britain’s 38 million savers have been urged to invest their money in the stock market after being warned that for many of them it is now a “waste of time” putting their cash into a savings account.

The warning came after official figures indicated that the cost of living had increased once again in November, making it nearly impossible to earn a real rate of return on any bank or building society savings product.

A sharp jump in the price of clothing and food was blamed, taking economists by surprise, many of whom expected many retailers to cut prices in the run up to Christmas. There are fears inflation will carry on climbing next year because of the incresase in VAT from 17.5 per cent to 20 per cent and higher gas and electricity bills.

“The problem with shares is they are speculative so can go up, or down with some more secure than others” says Oliver Yeates, Director of Chester based solar energy installers PV Fit Ltd. “Surely a safer option is to invest in a solar pv system, which offer a typical return of £1000+ per year through the Governments ‘Clean Energy Cashback’ more commonly known as the Feed-in Tariff (FIT) scheme?”.

Launched in April 2010, the UK’s popular FIT offers consumers an above market rate to homeowners (and businesses) for renewable electricity they generate. The tariff rate is guaranteed for 25 years, index linked and any income from is tax free – with capital cost of the initial installation paying back in as little as 8-10 years.

The solar energy system needs to be installed by a Microgeneration Certification Scheme (MCS) approved installer in order to be eligible to claim the FIT. “With energy prices continuing to rise and interest rates remaining low solar pv has never been a more attractive investment. You’re roof doesn’t even need to face due South with good performance even from unshaded roofs facing East or West” continues Oliver. “As MCS approved installers with nationwide coverage we at PV FIT Ltd have seen a huge shift towards solar energy given the very attractive FIT and increases in household electricity bills”.

Although solar FIT rates were not reduced in Octobers spending review, there was an announcement that the level of funding available for the scheme will reduce by 9% in April 2012, or before if “excessive demand”. Those who adopt late are likely to miss out so now’s the time to go solar – contact us today for your free solar survey.

Source: http://www.telegraph.co.uk/finance/personalfinance/investing/8202251/Investors-told-forget-savings-accounts-think-of-shares.html