Despite all the uncertainty surrounding the FITs consultation (or, perhaps partially because of it, if I'm truthful) I've been gathering quotes for a system to be installed at Bawden Towers.
Most offers have come in at around £3.8 - £4.2 per watt. However, one company (no name, no pack drill on this occasion - 'though why I'm being so coy I'm really not sure) came through with a whopping £6.7/w but with a guarantee to install by Dec 5 thereby pretty much ensuring a 43.3p-base FIT - provided I signed up within 2 days.
So I plugged this into my little project appraisal spreadsheet and guess what? The internal rate of return at 43.3p was no better than the best of the rest at 21p. Result? I declined their kind offer. That almost immediately triggered a revised proposal at £6.2/w.
Now this does represent a slightly better return (at 43.3p) than any of the rivals. But if the FIT was at 21p the IRR of my project would be somewhat below 1%. I would rather not be signing up with a company that either has no business at the lower FIT or is still making extraordinary profits. I declined again.
Well! Surprise, surprise! Another proposal came back lowering the unit cost to £5.2/w but without the guaranteed early installation date. That make a 22% lowering of cost over just a couple of days. These guys must have been making hand over fist if all their business has been at £6/w+.
They are difintiely NOT on my preferred provider list!
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