Would you like to participate in improving the lives of future generations and at the same time profit from supplementary revenue? If so, then investing in a photovoltaic installation may be for you.

Photovoltaic energy is electrical energy produced by solar radiation and as the sun is an enormous source of renewable energy, it is a very environmentally sound way of producing electricity. The electricity is produced when the solar rays are absorbed by photovoltaic cells. These cells are made of semi-conducting materials similar to those used in computer chips. When these materials absorb the sunlight, the solar energy causes electrons to be released from their parent atoms and flow through the material thus producing electricity. Solar cells are often used to power calculators and watches.

For larger scale energy generation, the solar cells are grouped into modules and mounted into glass panels. These panels are suitable for integration into roof as a replacement for the normal roofing material (i.e. slates or tiles), or mounted into framework for superimposition on a roof, wall or just on the ground. The electricity produced in this way could be used to provide power to an individual home. However, here in France, it has become the norm to sell the electricity back to the network. Since July 2006, EDF contracts to buy the electricity produced by photvoltaics at a guaranteed price of 55 cents per kilowatt-hour for 20 years, as long as the modules are integrated into the roof. Remember, depending on your tariff, you buy electricity at 7.875 cents per kilowatt-hour.

If we take an average family home, a 25m² installation integrated into the roof would produce up to 3120 W and cost around 30 000 €. The installation would be eligible for 50% tax credit on the materials. Moreover, a grant could be available from the department, but every department allocates grants differently. Finally, if the house is more than two years old, TVA is payable at the reduced rate of 5.5%.

Depending on the situation, the costs of the installation could be amortised in less than ten years, allowing the owner to profit on his/her investment for the next ten years. Calculated over the period, the annual rate of return on the investment could be around 8%, which is more than an investor would be likely get from a building society.

In summary, a photovoltaic installation is a green way of getting electricity into your home, a contribution to reducing green-gas emissions and a longterm investment opportunity in an environmental industry.