Are solar panels still a good investment?

Until the end of last year, solar panels - otherwise known as PV or photovoltaic panels - were subsidised in several ways: 40 percent of the investment could be written off for tax purposes; owners could sell the excess energy they produced (so-called green certificates); and they were allowed to run their electricity meters backwards. The tax deductions enjoyed by anyone investing in a solar panel in Belgium are now a thing of the past, while the value of green certificates is being progressively reduced by the country's different governments.

STILL WORTH IT

Given the less generous regime, the consumer magazine Test-Achats still considers solar panels worth the expense.

"If we base our calculations on an average installation with a capacity for 5 kilowatts that faces southeast or southwest - you still benefit - for a price of €3,000 per kilowatt - from a return of 4.5 percent to 5 percent over 20 years," the magazine says. That is better than leaving money in Belgian government bonds. "Solar panels are still a profitable investment," the magazine states.

By getting rid of the tax deductions it will now take consumers longer to recoup their investment - about seven to 12 years, whereas before they could have had their money back in five to eight. But if the technology keeps improving, the price per kilowatt could drop further still, meaning that PV panels could in fact turn out to be a canny investment.

TRAPS TO AVOID

As always there are traps to avoid. Experts frown upon the leasing deals offered by certain companies in Wallonia in particular. Rather than be tied to a company which reaps the benefits of the green certificates, why not take out a loan and take control yourself? Choose the installer with care: there are many cowboys out there who have no experience of PV. And don't be tempted to try it yourself: PV panels work on dangerous direct current, rather than alternating current. If you touch a wire running direct current, your hand will clasp around it and you won't be able to let go.

That said, provided the government continues to allow them to keep running electricity meters backwards, solar panel users are likely to be in the money over the longer term.

Source:http://www.expatica.com/be/news/news_focus/Green-policy-reversal_237726.html