The UK’s favourite supermarket has launched a solar electricity and hot water service, offering customers the opportunity to generate their own electricity and slash home energy bills at the same time. Customers will actually be paid for the electricity they produce – following the launch of the government Feed In Tariffs on Thursday, April 1.
The average customer can expect to make £939 a year. The Feed In Tariff pays for creating your own energy plus any surplus that goes back to the National Grid. People will make more the sooner they install it – as Feed In Tariff rates will decline over time, the Tesco launch is designed to help as many customers as possible benefit from the higher payments.
Lucy Neville-Rolfe, Executive Director at Tesco, said, “Tesco has always led the way by bringing affordable green products to the mass market. With low energy light-bulbs we cut the price and demand went through the roof. Now we’re making solar power mainstream by giving customers a simple, high quality product at the right price. Helping customers cut their carbon and their bill is a critical part of Tesco’s strategy to cut carbon emissions. Energy bills are climbing and that worries lots of consumers. Renewables are now affordable and simple. By helping save on bills, we’re helping them put money back in their pockets each month.”
“Customers have told us they would like to invest in renewable energy but have found the market confusing with prices varying dramatically from company to company and no easy way to compare the quality. From mobile phones to financial services, the Tesco brand is well known for bringing simplicity and value to complex markets and we’ll do the same in the home energy market. And to make a good deal even better, customers will receive double Clubcard points on their solar electricity and hot water systems.”
The venture into solar follows the launch of the Tesco Home Insulation Service in 2008. Over 34,000 households have signed up to the insulation service showing that there is a huge demand to make homes as energy efficient as possible.
The service costs on average £2,000 less than the nearest competitor. Tesco Renewable Energy will offer fully installed solar hot water systems at prices starting from as low as £3,499 and solar electricity systems from only £6,999. The average system will pay for itself and start to generate profit – taking into account energy price rises and inflation, you could make over £20,000 over 25 years. The service will also help you complete forms to get government grants and tariffs.
By using established and experienced locally based solar panel installers, Tesco will be supporting UK green industry and jobs as well as the £100m investment in UK green businesses announced in February.
Income and Savings
- The service is backed by a 10 year guarantee.
- Average income and savings – £939 average customer income and saving includes Feed-in-Tariff (Generation Tariff + Export Tariff) plus electricity savings, as of year Savings will increase over the systems lifetime due to domestic electricity price rises. The export tariff is deemed at 50% being exported. Calculations are based on 5033 kWh/per year (average electricity consumption for a UK typical home) Figures are averages of all systems available.
- Feed in Tariff – Under the FiT there are two tariffs; the Generation Tariff and Export Tariff. Customers using solar electricity systems will earn an income through the Generation Tariff (set at 41.3p/kWh until April 2012, after which point the tariff will decrease by 8.5% year on year) and the Export Tariff (set at 3p/kWh) The average customer (according to the above-mentioned calculations) will earn an income of £807 in the first year through the Feed-in-Tariff (£778 from the Generation Tariff and £29 from the Export Tariff).
- Free electricity – This means free energy converted from sunlight and used by the homeowner as part of their overall yearly energy consumption. £132 saving on electricity bill and usage based on a solar electricity system meeting a minimum 40% of the homeowners electricity requirements. Homeowners will need to pay for additional electricity to meet needs.
- Sainsbury’s 2.08kw system costs £11,999, the Tesco equivalent costs £9,999.
- Sainsbury’s 3.12kw system costs £14,999, the Tesco equivalent costs £12,999.
- Tesco Renewable Energy and the Tesco Home Insulation Service can be accessed via the Tesco Home Efficiency website (www.tescohomeefficiency.com) or by telephoning 0800 321 3456. Postal applications will be received by means of in-store literature and literature sent direct to customers.
Source: Tesco PLC.