From: "Adam" 
Newsgroups: uk.finance
Subject: Re: A high yield, low risk investment that's also environmentally friendly?
Date: Thu, 8 Feb 2007 18:49:25 -0000


"Grow Your Own Energy"  wrote in message 
news:1170947487.737373.185980@h3g2000cwc.googlegroups.com...
On Feb 6, 11:18 pm, "Miss L. Toe" 
wrote:
> > For example, a £2,800 investment in equipment to harness
> > the sun's energy to boost your central heating system could yield a
> > return of 11.0% and deliver a tax free profit of £7,461.20 in real
> > terms, adjusted for inflation*.
>
> I think this part needs a little deeper explanation before I believe it.

Sure.  I know that taking manufacturer's claims at face value is
highly dubious.  I've used the BREDEM model based on a 3 bedroomed
semi-detached house.  If you are so inclined, you can see the full
methodology at www.growyourownenergy.co.uk/fbc_methodology.aspx

The two key variables are :

* Your opinion on the future trend of energy prices
* Which fuel you will be replacing with a sustainable one
(electricity, gas, coal, oil...)


To which I would add:

* How much energy the investment will save you (and here I *really* wouldn't 
believe the manufacturer's claims)
* The length of time over which you're doing the calculations (personally, 
I'd be reluctant to spend money on something that was going to take more 
than 5 years to save me money and wouldn't even dream of touching anything 
that would take over 10 years)

Adam