It’s difficult to ignore the high cost of energy. Newspaper headlines proclaim the inexorable rise in our fuel bills. And to really rub salt into the wound, many fear the higher cost of energy will lead to a rise in the rate of interest, hitting us twice - once in our pockets as we pay our bills and again as we pay our mortgage (although this is a moot point - since some argue that higher energy bills are in fact deflationary as they reduce demand). But now, High Street retailer Currys is leaping to our rescue.
The DSG owned store is to sell domestic solar power panels for a typical price of £9,000, that’s half the price available elsewhere. Currys reckon this will cut household electricity bills by around 50%.
It’s the first example of solar power getting the mass market treatment. Over the last five years the cost of this form of energy had dropped by around 50% anyway, so the package available from Currys represents just 25% of the price we would have had to pay at the beginning of this decade.
The bad news, despite the high cost of our energy bills, is that it will take the typical household between seven and 18 years to recoup the initial outlay.
Of late we have heard a lot of hot air about how our wealth is increasing, and yet this rise in our wealth has not actually involved us doing anything. It has been driven higher by rises in house prices as a result of individuals in the property chain swapping money between them.
But here we see an example of how a top up in our mortgage, funding home investment, really can boost the UK plc.
The cost of funding the panels can be subsidised too. The DTI is running a low carbon building programme, which can subsidise the cost of installing panels by up to 50%. However, the funds available only total £10.5 million, so if the Currys move proves a hit, this money will not stretch far.
Initially, the Currys solar power will be available from just three stores, West Thurrock, Fulham and Croydon. But, if the trial is a success, the products will be rolled out nationally.
The solar panels are being supplied by Sharp Electronics.
However, one would assume there was a problem with the concept in the UK. You may find it hard to cast your mind back to the days when our weather was lousy, that’s to say before this July, but in fact we only tend to receive 3 weeks of sunshine a year. How can these solar panels work in our wet climate? Apparently, the technology has moved on, and the panels don’t need sun, they can get by on daylight, even if it’s the miserable daylight we Brits often have to contend with.
The ultimate success of these panels does seem to depend on where in the spectrum of seven to 18 years a householder might expect to recoup their costs. If it’s 18 years, that’s a long time, and with interest the decision becomes marginal. But if it’s seven years, then it’s a no-brainer.
We assume, however, that as demand grows, economies of scale will lead to a fall in cost.
And it’s all being made possible because of the high cost of energy. If we were still paying rock bottom prices for our energy, there would be a lot less interest in product like this. That’s why the key to fighting global warming lies in getting consumers to pay the true cost of the energy they use. And once they do that, economies of scale will reduce costs, and ironically the side effect of higher energy bills will ultimately be to make us better off.
For further information
Sharp and Currys to bring solar technology to the high street for the first time Currys Sharp
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