Income for Relative from PV?

SideKick

I have an elderly mother who needs to supplement her income to cover increasing fuel bills etc (She has LPG heating). She a sum of money that she wants to invest to get a regular income to help with the bills.

Her house is not really suited to solar PV, but mine is. I am going to get Solar PV anyway, but wondered if I might help by getting her to invest in the cost of my PV system and then give her the FIT for as long as she needs it.

Are there any difficulties with this arrangement? - I cannot think of a better way for her to get such a return on investment that is relatively risk free.

zeupater

SideKick wrote: »

I have an elderly mother who needs to supplement her income to cover increasing fuel bills etc (She has LPG heating). She a sum of money that she wants to invest to get a regular income to help with the bills.

Her house is not really suited to solar PV, but mine is. I am going to get Solar PV anyway, but wondered if I might help by getting her to invest in the cost of my PV system and then give her the FIT for as long as she needs it.

Are there any difficulties with this arrangement? - I cannot think of a better way for her to get such a return on investment that is relatively risk free.

Hi

I take it that with LPG the house isn't in an urban environment ? ... is there a reasonable sized garden which could take panels on an outbuilding, a carport, a ground frame etc ? ....

Difficulties with your proposal could be related to some form of contract being drawn up, FiT income transfer being classified as earnings for pension/tax etc .....

HTH
Z

SideKick

Thanks for the reply. Her landlord would not allow Solar PV to be fitted. It is a complicated arrangement I would rather not go into here.

Hadn't thought of the tax implications for her, will need to discuss.

albyota

Hi, I think its a brilliant idea, as far as I can see, it would be a private agreement between you and your Mum, if she pays to have the panels installed on your roof and you receive the FIT's and then you just pay her the equivalent per month to aid her bills. No different to her buying you a car in return for providing a 'private Taxi service', if you know what I mean!

thenudeone

The legal implications could be quite messy
Who owns the panels?
Who is legally entitled to the FIT payments (if it's not the householder then it will probably be taxable)
What happens if you die? - do the panels (like your house) form part of your estate? Will whoever your house goes to have an obligation to pass on the FIT payments
what happens if you are made bankrupt, or your house repossessed?
What happens if she dies? Do the panels form part of her estate?

It would be much be cleaner for her to lend you the money and for you to agree to repay with interest it over a fixed period, without even mentioning anything about the panels. You could work out an interest rate which means that the repayments + interest more or less equal your FIT income.

You could then buy the panels and leave everything in your name.

zeupater

thenudeone wrote: »

The legal implications could be quite messy
Who owns the panels?
Who is legally entitled to the FIT payments (if it's not the householder then it will probably be taxable)
What happens if you die? - do the panels (like your house) form part of your estate? Will whoever your house goes to have an obligation to pass on the FIT payments
what happens if you are made bankrupt, or your house repossessed?
What happens if she dies? Do the panels form part of her estate?

It would be much be cleaner for her to lend you the money and for you to agree to repay with interest it over a fixed period, without even mentioning anything about the panels. You could work out an interest rate which means that the repayments + interest more or less equal your FIT income.

You could then buy the panels and leave everything in your name.

Agree .... thats why I mentioned a contract ....

Z

liquidity_2

And bear in mind this investment is not one she will be able to get her money back out of until you sell your house or buy her out.

SideKick

Thanks to all who have contributed their opinions on this. I have not discussed this with my mother yet, but have with my spouse and she is not in favour of it, so have regrettably abandoned the idea.:(

We will still be proceeding with our own PV system however.:j