Help deciding on FREE solar panels

KevShek

I've searched and its been discussed many a time, but I just need some basic advice and questions I should be asking.

I had a call from a company called RES, renewable energy solutions, https://www.renewablesolutions.org.uk about installing some free panels to my roof. This will be for the 25 years period. They don't want any money from me, they get it from the government, they also maintain them and the panels are insured through the backing company. Basically, I've nothing to pay and I just benifit from free electricity.

Am I right in saying this it just during the day when its being produced? Cost if I'm out all day, then they will benifit.

I've asked how it would effect the resale value of my property and have been told that it would possibly increase it, but would this actually be something that would put off potential buyers? As they would have to continue the 25 year contract. I don't intend to be here that long.

I've asked about get out clauses, all they told me was that if I wanted them removed then their would be costs. They could not give me a direct answer about any other financial penalties for the remained of the term.

What should I be asking? It sounds good but I'm scared I'm making a mistake I may regret.

Cardew

There are literally hundreds of posts in several threads about these schemes - known as Rent-a Roof-schemes.

Solar electricity is produced during the day, and you can use as much as you are able. Potential savings are between £70 and £100 a year, but if you are out all day possibly well under £70.

You sign a 25 year agreement to 'rent out' your roof and that is binding on any future owner. Unless he agrees - no sale!

Feelings are mixed about making your house more saleable; some say it enhances the appeal -others it detracts.

Read the posts!

gardner1

if your out at work most days you wont get much free leccy

KevShek

I've been trying to read the poss but they appear more argumentative than informative, also using terms I'm no familiar too. Bear in mind this is all new. If the savings are a mere 70-100 quid a year, its hardly worth me committing to 25 years especially if I'm not going to be here that length.

Cardew

KevShek wrote: »

I've been trying to read the poss but they appear more argumentative than informative, .

That is because there is no 'proof' of annual savings, it is largely conjecture.

Similarly it is conjecture about the panels attracting or detracting from the appeal of the property when it comes to selling.

If it comes down to opinion, then I wouldn't touch the scheme with a bargepole.

KevShek

Thats all i needed to know.
I know more or less the pros, which is everything that sounds good about the deal. It was the cons i didnt which left me unsure. For me, its the not so good saving to be had and the 25 year term, this alone outweighs any benefits.
This is what the average joe needs to know, not the FIT, PV, ABC123!

larkim

Personally, I see it differently:-
- there is a small "green" benefit to having solar installed
- I can modify my use of electricity during the day to maximise my use of the solar
- I get £10k of kit from which I can draw a benefit for free
- I don't perceive any loss in value in the property; if I were a purchaser the solar installation, including the contract to maintain it which costs the householder nothing, would enhance the value to me
- I don't see the potential for £70+ cash savings per year as being a "not so good" saving given that it costs me nothing in the first place
- I don't mind other companies making a profit out of me; they do that every day with just about everything I do (including visiting this website!)
- my personal situation means I fully intend to stay in this house for the next 25 years
- my (nearly scheduled!) installation will be undertaken under the auspices of a large energy company, so I am less concerned about "cowboy" installations
- the business model for RaR providers requires them to be in business for a prolonged period of time, otherwise the scheme won't pay them a profit either!

But, as you say, some of this is opinion, very little is fact. I just see it differently.

Matt

BornAtTheRightTime

larkim wrote: »

- I don't perceive any loss in value in the property; if I were a purchaser the solar installation, including the contract to maintain it which costs the householder nothing, would enhance the value to me

Unfortunately you only have to take a quick look at MSE's House Buying/Renting/Selling forum to see that an awful lot of people are put off by anything they don't understand.
For example, frequently there are posts where surveys have picked up 'electrics not being up to current building code' and the poor buyer is scared witless this means instant electrocution from 5 year old wiring or unaffordable £000s needed to rectify 'the problem' and therefore decides to pull out of the purchase.
Imagine how such non-savvy buyers of the future will react to solar panels not wired in according to a future wiring regulation standard, an inability of their surveyor to check hidden roof tiles and binding rent-a-roof contracts...

it won't make the house unsaleable as educated buyers such as Matt exist, but will make it harder to sell.

KevShek

Ive rung and cancelled my appointment/survey, i just think perhaps there is no rush into doing this. There is a lot for me to consider, also there are many companies which offer this so its not limited to just right now. The point ive made to RES is that getting on the scheme doesnt appear to be a major problem providing you meet the criteria, but getting off it does. I dont want to put off potential buyers when that time comes, especially if they are like me, and dont fully understand the system.

grahamc2003

BornAtTheRightTime wrote: »

it won't make the house unsaleable as educated buyers such as Matt exist, but will make it harder to sell.

I agree. But 'making it harder to sell' equates with 'selling for a lower price'

In my mind, I can't see the value of the free electricity ever coming near to the drop in the value of the house over any time period at all.

I wouldn't consider any future property with rar panels for other reasons, as well as those you mentioned. As well as surveyors putting buyers off, solicitors will too in the future imv. They work for the benefit of the buyers who pay them, so will have to report back on the tenant sitting on their roof, and how the property isn't being sold free and uncumbered, and how this may affect a future sale when the current buyer comes to sell.

The scale of the risk to the scale of the benefit seems completely out of kilter. I mean, £70 per year must be a very small return for anyone - the child benefit for one child is approaching that much per week for example iirc, and balanced against that is a risk your proprty may have to be priced 5% lower in order to sell.

larkim

I know there are some very wary people out there, but I don't think we can judge from the MSE forums whether the overall population is clued up or otherwise. My house is currently in the higher end of house prices in our area, so (as an over-generalisation) I would expect more affluent purchasers to equate to more reasoned / reasonable purchasers. I could be wrong!

Also, I should have mentioned that the Eon install which I should be getting fairly soon includes a reasonably priced buy out scheme. So in the event, if in 10 years time I find my house is being marked down in price as a consequence of having a RaR installation I can convert that at a reasonable cost into a "traditional" FIT scheme with the associated revenue generation that that brings. I think I could make a very good case to even the most sceptical purchaser in ten years time that it was worth getting paid to generate and use solar, based on likely energy prices at that time.

If I owned a bungalow, or had a loft which had potential for a conversion, or had a house which needed (or could reasonably have) an extension, I might have a different view as the solar would limit that expansion. But that's not the case for my property.

With respect to surveyors and solicitors, whilst solar will still remain a minority feature on houses, I would expect that both professions will develop some experience and expertise with these sorts of arrangements (both RaR and "traditional" FIT installations). The lease for the space over the roof (not the roof itself) that I signed was well drafted, clear, and put all significant obligations on the tenant (Eon) and (to my satisfaction) all aspects of maintenance obligations were clear and unambiguous. I deal with leases on a professional basis in any event, so I have a reasonable eye for these things.

But all of this represent reasons why I think it is a sound deal; each to their own, and you have to weigh up the specifics as you see them.

I'll post back in 10 years time with my net experience...

Matt