Solar Equity Release Scheme

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theposhcat
theposhcat Posts: 16 Forumite
First Post First Anniversary Combo Breaker
in Green & ethical MoneySaving
Hi,

My dad has solar panels on his roof and has had a leaflet offering a lump sum for his feed in tariff.

I assume that if he agrees he no longer gets the money created from the feed, this now company do?

What do I need to know before advising him? Is this a good deal or not?

I'm sure that I need to ask him some questions for you guys tyo help me, but I don't have solar panels so not sure what questions to ask.

Any guidance appreciated.

Cheers

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  • Martyn1981
    Martyn1981 Posts: 14,806 Forumite
    Name Dropper Photogenic First Anniversary First Post
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    Hiya, there are some views and opinions on this thread, and some negative comments from myself over the amounts offered. I'm not giving an opinion on whether to do it or not, but it might not be the best value, you'll need to consider the amount offered, v's the annual FiT + export earnings, and decide.

    If you want/need any explanations on PV just ask, but hopefully your father will have some records showing the earnings. For myself, 2016 was an ok, but not great year, so that's probably a fair year to look at for a rough average.

    Selling your Solar Panels - Lightsource
    Mart. Cardiff. 5.58 kWp PV systems (3.58 ESE & 2.0 WNW). Two A2A units for cleaner heating.

    For general PV advice please see the PV FAQ thread on the Green & Ethical Board.
  • EricMears
    EricMears Posts: 3,248 Forumite
    First Anniversary Name Dropper First Post
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    theposhcat wrote: »
    Hi,

    My dad has solar panels on his roof and has had a leaflet offering a lump sum for his feed in tariff.

    I assume that if he agrees he no longer gets the money created from the feed, this now company do?

    What do I need to know before advising him? Is this a good deal or not?

    I'm sure that I need to ask him some questions for you guys tyo help me, but I don't have solar panels so not sure what questions to ask.

    Any guidance appreciated.

    Cheers


    Presumably he paid for his panels in the first place ? He should have no further expenses for the balance of his 20 (25 ?) year contract with the possible exception of needing to replace (or repair) the inverter at some point.

    Such a scheme is, at best, going to offer a lump sum that's a lot less than he'd eventually receive by hanging on and doing nothing. Unless he's really desperate for a lump sum now (and can't borrow against the security of his house and fund the interest from his FIT payments), I can see no advantage in selling off his FIT payments.

    There are several disadvantages though - having a lease on the roof is very likely to cause problems if ever he wants to sell the house whereas selling the house with a guaranteed income stream ought to make it more attractive to buyers.


    If offered a similar deal, I'd consider it for a few milliseconds before rejecting it !
    NE Derbyshire.4kWp S Facing 17.5deg slope (dormer roof).24kWh of Pylontech batteries with Lux controller BEV : Hyundai Ioniq5
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