PV panels and F.I.T

elbowpipe

We're selling a house which generates about £1500 a year in FIT payments. Only began in 2011 so quite some time to run. Can I expect some value related to this to be added onto the Home Report valuation, or should I expect the buyer to come to a private arrangement similar to sale of contents?

Davesnave

elbowpipe wrote: »

We're selling a house which generates about £1500 a year in FIT payments. Only began in 2011 so quite some time to run. Can I expect some value related to this to be added onto the Home Report valuation, or should I expect the buyer to come to a private arrangement similar to sale of contents?

There are several factors to consider, such as whether you own the panels, or if it's a 'rent a roof' scheme. If the latter, then many would regard it as a negative.

The comparison with contents is not valid, because unlike, say, white goods, you are not free to take the panels with you anyway. They are in the FiT scheme and must stay.

Finally, despite panels becoming commonplace, a proportion of the buying public dislike them for reasons of appearance. You and I might think this foolish, but what a property is worth to someone isn't always a matter of rational judgement!

AnotherJoe

Davesnave wrote: »

There are several factors to consider, such as whether you own the panels, or if it's a 'rent a roof' scheme. If the latter, then many would regard it as a negative.

The comparison with contents is not valid, because unlike, say, white goods, you are not free to take the panels with you anyway. They are in the FiT scheme and must stay.
!

Ah but is the FIT payable to the owner, the occupier, or the person who signed the contract ?

Keep_pedalling

AnotherJoe wrote: »

Ah but is the FIT payable to the owner, the occupier, or the person who signed the contract ?

Normally the original owner would pass the FIT payment to the new owner, but you could come up with an agreement with you buyer to retain ownership which would effectively make it a recant a roof system, but I can't see many buyers wanting to agree to such an arrangement, and how many sellers want the hassle of being resposable for the maintenance of something in their old house.

Davesnave

Keep_pedalling wrote: »

Normally the original owner would pass the FIT payment to the new owner, but you could come up with an agreement with you buyer to retain ownership which would effectively make it a recant a roof system, but I can't see many buyers wanting to agree to such an arrangement, and how many sellers want the hassle of being resposable for the maintenance of something in their old house.

Thank you. You put it better than me.

AnotherJoe

So there is a value to the FIT then, which is a tricky one as to how to establish its worth to the new owners. A house with one should be worth more than one without. By how much , no idea.

MyOnlyPost

I have a fully owned PV system fitted 2011. I wouldn't have dreamed of having it fitted if I thought there was any chance of moving before it was at least paid back and I intend to stay put the whole 25 years.

I would speak with the EA and ask their experience, have they factored in the F.I.T. when valuing the property and does it even make a difference.. You can make it a point of the sales particulars that the house has 19 years of guaranteed income which is linked to inflation. I wouldn't however automatically assume that someone will pay more for this. You aren't in a good position to negotiate a separate sale of the array as you can't move it with you if no-one wants to buy it.

MyOnlyPost

AnotherJoe wrote: »

Ah but is the FIT payable to the owner, the occupier, or the person who signed the contract ?

The F.I.T. generator (property owner) can nominate who the F.I.T. is paid to so technically anybody. As they can change this at any time then a legal agreement would need to be drawn up if it were paid to someone else

AnotherJoe wrote: »

So there is a value to the FIT then, which is a tricky one as to how to establish its worth to the new owners. A house with one should be worth more than one without. By how much , no idea.

F.I.T. in the early days was a good buy and provides a decent revenue stream. When I bought mine it was 43.3p per kWh and if you don't have a smart meter you are deemed to export half of the electricity you produce to the grid at a further 3.1p per kWh the payments are guaranteed for the whole term.aand index linked over 25 years. My electric bill also halved so all in all the net return on my panels over 25 years is projected to be 500% (£50k) but I am already ahead of schedule after 5 years and 2 months.

So the benefit is quite big, but the sell on value is an unkown quantity

davidmcn

AnotherJoe wrote: »

So there is a value to the FIT then, which is a tricky one as to how to establish its worth to the new owners. A house with one should be worth more than one without. By how much , no idea.

Objectively it has some value, but a surveyor would need to demonstrate evidence that buyers actually pay more. Not sure that exists. Possibly more a selling point than something which actually adds to the price (though that can help if it goes to a closing date and one or more of the bidders is entranced by the panels...).