Selling a home, but keeping the FIT?

Johnandabby

InVestor wrote: »

The average household is expected to save somewhere in the region of £80-£100 per year I believe?

Completely depends on the size of PV system and the FITs rates at the time of registration. A 4kWp system registered when the rates were at their highest could make up to £2,000 in a good year

I know you've said average, but £80-£100 is probably a 2-2.5kWp system without any FITs included

rogerblack

ptrichardson wrote: »

I'm interested in how having free electricity to the value on hundred of pounds per year would lower the value of a house.

They raise the cost of potential roof-works.
They limit the ability to install other things on the roof - such as Dormer windows.
They remove or reduce the possibility of installing your own panels, especially as these are likely to become very much cheaper in the years to come.
They have the possibility of complicating sales.
Even aesthetics - though clearly this is a personal view.
If not installed properly, they raise the risk of leaks, and storm damage.

And it's not hundreds of pounds a year.
In some cases, it may be a hundred pounds a year or a little more.
To get to two hundred pounds will require drastic shifts, that may be unfeasible in many cases.

tberry6686

I'm with withabix on this.

If I was looking at a house and the vendor wanted to keep the FIT from the solar panels then they would have to be removed or a substantial discount on the selling price, probably not as much as 50% but at least 25%.

If the FIT was going with the house then I would not be willing to pay any premium for having them either and I suspect this would be the case with a large percentage of buyers.

If someone did buy it and leave you with the FIT what would happen if they decided to replace the roof ?

Would you expect them to potentially damage a new roof re-installing the panels or pay you for the lost FIT. Would certainly be a deal breaker for anyone who thinks it through properly. Probably a better idea to rent the house out rather than sell with the hope of a premium price or holding on to the FIT.

tunnel

I would buy a house with panels installed already,IF they were bought by the owner and was passing on the FIT. How much extra i'd be willing to pay....dunno,depends on capacity and FIT rate(only because i know about it). I guess you'll always get someone who doesn't appreciate your "improvement". I certainly wouldn't buy a house with a RAR like ASG,just don't like the idea of someone profitting from my roof(should be me) and as such would personally value the property down.

In my eyes OP,your options are sell with panels and FIT(for reasonable price),keep and let out or take a hit on value and retain the FIT, thats my thoughts anyway,please do keep us informed how you proceed,would be interesting to know.

Tunnel

Johnandabby

ptrichardson wrote: »

Thanks for the replies. Yes, the freely installed panels have some kind of marker on the mortgage that passes with ownership. Some mortgage companies don't like dealing with that, some don't mind.


I'm interested in how having free electricity to the value on hundred of pounds per year would lower the value of a house. I understand there's a very minor inconvenience, but enough to negate this financial benefit? If it was so bad, people wouldn't have them fitted for free, which isn't the case.
I'd be delighted to buy a house and find that I was going to get a few hundred quid a year free electricity for panels that are certified and that I didn't need to maintain.

Suppose that's me - someone who doesn't mind the appearance whereas I can understand if someone felt they spoiled the look of their house or pushed up their mortgage costs.


Sounds like it would be very very tricky to retain the FiT after selling the property though.

Some people don't like change, and PV panels are definitely a visible indication of this. My parents' generation hate our panels, but no-one of my generation has said a negative comment about them. It will take time, but it will become the norm to have panels installed in the future.

I personally would be very happy to buy a house with PV panels, but I would also look at the EPC for the house, and consider lots of maintenance issues etc. Most people looking at houses don't even think about these things.

As a potential purchaser I would probably be prepared to pay 1 years energy savings on top of the house price to cover the PV panels, but agree with the poster on your other post that people need to factor in morgage interest costs.

InVestor_2

Johnandabby wrote: »

Completely depends on the size of PV system and the FITs rates at the time of registration. A 4kWp system registered when the rates were at their highest could make up to £2,000 in a good year

I know you've said average, but £80-£100 is probably a 2-2.5kWp system without any FITs included

What on earth has FiT rates got to do with annual electricity savings??

Some confused people posting in this thread..

Energy Saving Trust quotes £70 electricity bill saving for a 2.7 kWp system, which it considers 'the most common' system. This presumes savings of nearer 25% (from it's own research)than 50% presumed earlier.

ptrichardson

Johnandabby wrote: »

Completely depends on the size of PV system and the FITs rates at the time of registration. A 4kWp system registered when the rates were at their highest could make up to £2,000 in a good year

I know you've said average, but £80-£100 is probably a 2-2.5kWp system without any FITs included

Mine is a 3kW system at the top FiT rate, ~43p. Installed Nov-11. Made a little over £1200 in year one (plus savings to electricity bill, of course)

ptrichardson

Oscargrouch wrote: »

I have Solar Panels on my roof; not the rented roof type, bought them, as an investment. If I was selling my home I would show prospective buyers the expected returns on FIT payments over 25 or 20 years (yours by the sound is 25) I would show them the 25 year contract (RPI proof) from the Gov. I would show the returns that you have had so far, and let them calculate the increases over the remaining period of your contract + the savings of your power usage since installation. I would then offer to sell the house excl. FIT payments (which you retain) but with the benefit of cheaper power for £? negotiable. And if they do not play ball and you do not need to sell; bin them! And get another agent who will realise the potential of what he is trying to sell without just trying to realise his commission for selling your property for less than you deserve.

This is the thing. Its worth Twenty Five Grand over the next 25 years.

If I could lift them, and re-install in this other place, then I would without hesitation.

InVestor_2

ptrichardson wrote: »

This is the thing. Its worth Twenty Five Grand over the next 25 years.

If I could lift them, and re-install in this other place, then I would without hesitation.

Then you would lose the FiT payments anyway.

Oscargrouch

ptrichardson wrote: »

This is the thing. Its worth Twenty Five Grand over the next 25 years.

If I could lift them, and re-install in this other place, then I would without hesitation.

Sorry; did not realise they were not yours; you cannot lift them, as they belong to the Company that paid for them...End Of.