Should you buy, or get them free?

You have at least 2 choices when it comes to having solar PV panels installed.

The Pros and Cons.

Are you worried or concerned about committing your capital towards the purchase and maintenance of solar photo-voltaic panels?

Purchase costs are typically very large and this can put many off buying. Although the returns on self-owned panels are excellent, typically 8-10% with the Feed In Tariff and the savings on energy bills, compared with 0.1% in interest on a savings account, tying up several thousands of pounds of a limited budget is a daunting prospect to many.

However, financial help is in fact, readily available. Entrepreneurial investors have dedicated several millions of pounds of investment money so that schools, clubs, retail premises, hotels, homes - in fact just about any domestic or commercial property - can now benefit from solar PV panels, supplied, fitted and maintained, free.

Why the generosity?

You might well ask. The Feed In Tariff is a pretty attractive incentive, currently paying over 43p per generated kWh of electricity. This payment is made whether the energy is fed back into the grid, or used by the home or business owner - it's a reward for generating electricity, not necessarily for using what is generated. A further 3p plus per kWh is paid for any electricity fed into the national grid.

The tariff is guaranteed for 25 years, is tax free and index linked. So, what's not to like? These 2 tariffs make solar PV panels an excellent investment and entrepreneurs have not been slow to jump on the bandwagon, they see this as an ideal investment opportunity.

What do YOU get out of it?

You will be able to use as much free electricity as the panels can generate. You'll benefit most if you're able to use this energy during the day - and as a 9-5 type business, school, farm etc., in all likelihood, your premises and working hours are ideally placed to benefit from that.

In some cases, you will get a payment for the electricity fed into the grid, this will depend on the individual deal made. Some installations will also generate a one off cash payment to you in return for being allowed to use your roof space. This also depends upon the particular offering made by the investor.

What will it cost overall?

Well, as you will not be required to maintain the system yourself, nothing.

It is in the investor's interest to ensure the system is working optimally - after all, that's where they make their money, from the electricity generated.

Is there an alternative?

Of course, if there's something in it for entrepreneurs, who will have investigated this fully and carried out their due diligence, there should be something to say in favour of self ownership - and there is! Owning your solar PV panels will help to offset the effect of energy price rises and once paid back in full, will actually generate additional income.

Having said that, if you're not ready to commit to paying up front, then free panels are waiting to be fitted to your property.

You'll need to be fast though, the Tariffs drop in 2012 for those installing after March, whilst those who install before then retain the current level of payment, index linked, tax free and guaranteed for 25 years.

Please visit http://www.government-grants.co.uk for more information.