IKEA is now selling solar panels across the UK. But can they really save you £770 a year?
IKEA is to sell low-cost solar panels to British customers.
Costing from £5,700, IKEA calculates these panels will reduce a typical household's energy bills by £768 a year. In other words, these panels will pay for themselves in less than seven and a half years and halve your energy bills from that point onwards.
'Affordable solar energy for all'
The panels have been on sale at IKEA’s Lakeside store since July as part of a pilot scheme, which has now been extended across the UK.
The next IKEA store to offer solar panels is Quay Road in Southampton, Hampshire, where thin-film photovoltaic (PV) panels went on sale last week. Over the next 10 months, this product will be rolled out to all 18 IKEA stores across the UK. These PV panels are made by Chinese company Hanergy, which claims to be the world's largest thin-film PV supplier.
According to research conducted by Ikea, almost three in ten homeowners believe that they would save only up to £100 a year by fitting solar panels to their home. In fact, the typical saving is £768 a year, according to IKEA's calculations.
IKEA and Hanergy claim that their joint venture makes solar energy "an affordable reality for all".
Greener living...
IKEA quizzed shoppers on sustainable living and found very limited awareness of the benefits of solar energy. Only one in sixteen homeowners (6%) had already switched to solar panels, while almost two-thirds said they were put off by the cost.
[SPOTLIGHT]The good news for folk looking to lead a more sustainable home life - while making substantial savings at the same time - is that IKEA's prices include in-store consultation and design, as well as expert installation, maintenance and ongoing energy monitoring. This cuts out the middleman and is backed by IKEA's hard-won reputation for competitive pricing.
What's more, IKEA's Swedish heritage and long-term commitment to environmental sustainability have given its brand a relatively high 'green' status. The group has already installed over 500,000 solar panels on IKEA store roofs across the world. This popular appeal, combined with its low pricing, suggests that IKEA is onto a winner by entering the solar-panel market.
...with a 13.5% yearly return
IKEA claims that installing a home solar system is "one of the best investments homeowners can make today". The numbers certainly stack up, as a £768 yearly return on an initial purchase price of £5,700 works out at an annual return of close to 13.5%. That's almost seven times what your cash could earn in a table-topping easy-access savings account paying a mere 2% a year.
What's more, after seven and a half years, IKEA's panels have paid for themselves and then pay you a high, tax-free return until they need replacing in, say, 20 years or so. Another bonus is that Hanergy's free monitoring system enables you to measure your electricity consumption and generation via the internet or smartphone, allowing you to minimise energy wastage in your home.
Given the low returns on offer from other investments, plus the relative riskiness of shares and bonds, investing in low-cost energy generation via solar panels seems to add up. As well as making a handsome yearly return on your initial outlay, you also get the satisfaction of living a greener life. This looks a win-win opportunity to me!
What do you think? Is a solar panel a sensible investment? Let us know your thoughts in the comment box below.
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