How do I claim for parents Solar PV installation?

Ferdy147

Hi all,

My parents are currently in the process of having a solar pv installation completed - weather permitting!

I've agreed with them that I'll pay for the installation and claim the FIT payments.

How do I go about doing this? I thought it was just a case of entering my details on the FIT application form as the person who payment was to be made to. Someone has said though for this arrangement there needs to be a proper contract in place. Anyone know anything about this and where I can get such a contract from?

Thanks in advance

Ferdy147

larkim

I suspect the simplest way is for you to pay the install money to your parents, and then they pay the FITs to you. They wouldn't scam you, would they?!

Matt

bjohnson

I would have thought that the FIT form was the contract. You haven't said how old your parents are. Will they still be around in 25 years? I can't see any problem with just filling in the form with your name.

Ferdy147

They're 65ish.

Not worried about them scamming me as that won't happen. But can the FIT be transferred into my/someone else's name if required in the next 25 years?

larkim

Yes it can - I know that simply because I have one of the "rent a roof" setups on my roof, and if I buy that out from Eon I get the FITs instead of them.

How you go about doing it, though, I'm not sure. And if for some reason your parents stopped owning that property, how would you feel about taking the FITs / maintaining a system that was in a completely independently owned home?

Matt

jimjames

Presumably by transferring into someone else's name you mean that if they move out the FITs can remain in your name?

I guess this is possible but if you (or they) do not own the house then you would need to put in place a rent-a-roof contract to keep ownership of the panels for the FITs.

Otherwise if the house is sold then the panels and FIT go with it.

thenudeone

Whose name was on the contract for the installation? My FIT providers needed to see proof of ownership in my name before they registered my installation on the database (i.e. an invoice and / or signed contract).
If the contract was in your parent's name then unless you have had some formal legal paperwork drawn up my guess is that a) you won't be able to claim the FIT yourself and b) the panels are now classed as a fixture or fitting on the house (which presumably they own) and would be part of their estate.

Trying to draw up a suitable legal arrangement for the panels to remain your property and for you to be eligible for FIT could be very messy. (Have a look at the posts regarding rent-a-roof companies to see why)

IMO, the simplest way to resolve this may be to draw up a simple document to agree a loan from you to your parents which could only be repaid out of the FIT payments. You could specify that the interest rate would be retrospectively calculated (after 25 years, say) to ensure that the FIT payments equals the original loan plus interest. Alternatively specify 0% interest. Any FIT payments received after the loan was repaid could be given informally as a gift

You should also consider taxation. Income from FIT is tax-free ONLY if it's on or near your main home. Income from FIT on someone else's home (or interest earned on a loan if that's how it's done) is taxable.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM40530.htm

You may decide just to do the whole thing informally, but if the worst should happen and both parents die, the panels and (the increased value of the home due to the FIT) would probably be part of their estates and would have to be split according to their wills or the intestacy rules.

don0301

all you need to do is:

have your parents as the "owners" of the installation, done on paperwork when installation completed.

have them "assign" you as receiver of the payments, again done on the paperwork they will complete with the installers when installation completed. or can be done afterwards by them as long as they are the registered "owners".

it is the "owner" of the installation that decides who gets paid, and only the "owner" can change who gets paid.

therefore there are implications if your parents sell the property, or pass on. it is this that may require a contract, and i would advise employing a solicitor if you want/need that.

be aware that many think it would be very hard to sell a property to someone, with a contract kept on the roof installation and FiTs payments.

FiTs is a long term (25 year) contract, and this needs to be considered.