Solar panels

sweaty_betty

I've been offered a solar panel system (friend is selling their house, buyers don't want them, new house has them already).

Although I like the idea of solar panels, I don't know the details of how to get them installed, "plumbed in" to our house (electrics? hot water system?) and arrange for any surplus to be fed back to the grid.

Can anyone tell me how this could work? Friend has said that they're already tied into a contract that they will have to pay for over the next few years, regardless of who takes the panel/system on, so we won't be taking on that cost.

Any advice would be great!

NineDeuce

Almost certain that your friend would have had them installed by an accredited installer in order to apply for the financial incentives known as Feed-in-tariffs (FiTs). The panels rest on your roof and then are connected to your mains electricity with a device called an inverter in between. There isnt too much more to it in that sense. The usual complications are getting on the roof and the cabling. The installer would set it up so your electric system prioritises the generated electricity over the mains when you are using it, so you are not charged for the electricity; whereas the rest feeds into the grid. Under the FiT scheme you receive payments for both the generated and exported electricity

Most likely you would have to take on the FiT contract that they have. The supplier is only obliged to make payments for for 20 years on a given system, so you would have whatever is remaining.

The FiT system pays you, not the other way round so it is feasible that your friend has bought them on credit - either via a convential loan, or by agreement with the company installing that the FiT money coming in is paid to them once you have claimed it from your energy supplier.

If so, you would be well advised to avoid this. You will have certain obligations to fill to ensure the installer gets their money back - this would be a deterrent for a new house buyer for sure.

Cardew

NineDeuce wrote: »

Almost certain that your friend would have had them installed by an accredited installer in order to apply for the financial incentives known as Feed-in-tariffs (FiTs). The panels rest on your roof and then are connected to your mains electricity with a device called an inverter in between. There isnt too much more to it in that sense. The usual complications are getting on the roof and the cabling. The installer would set it up so your electric system prioritises the generated electricity over the mains when you are using it, so you are not charged for the electricity; whereas the rest feeds into the grid. Under the FiT scheme you receive payments for both the generated and exported electricity

Most likely you would have to take on the FiT contract that they have. The supplier is only obliged to make payments for for 20 years on a given system, so you would have whatever is remaining.

The FiT system pays you, not the other way round so it is feasible that your friend has bought them on credit - either via a convential loan, or by agreement with the company installing that the FiT money coming in is paid to them once you have claimed it from your energy supplier.

I think you will find that the regulations do not allow 'second hand' solar PV systems to be eligible for FIT; including transferring equipment to another house and retaining FIT.

NineDeuce

Cardew wrote: »

I think you will find that the regulations do not allow 'second hand' solar PV systems to be eligible for FIT; including transferring equipment to another house and retaining FIT.

I did think was the case but I could not be certain of the reason for the repayments mentioned.

footyguy

sweaty_betty wrote: »

I've been offered a solar panel system (friend is selling their house, buyers don't want them, new house has them already).

Although I like the idea of solar panels, I don't know the details of how to get them installed, "plumbed in" to our house (electrics? hot water system?) and arrange for any surplus to be fed back to the grid.

Can anyone tell me how this could work? Friend has said that they're already tied into a contract that they will have to pay for over the next few years, regardless of who takes the panel/system on, so we won't be taking on that cost.

Any advice would be great!

I feel sure whoever your friend is planning to use to remove these panels will also be able to fit them to your property, or at least advise who could. e.g. the original supplier/installer.

But I fear this whole matter sounds like it will be a legal minefield. Seek independent legal advice, and ensure your mortgage provider is also aware of whatever you are proposing to do.

System

I have to ask: why isn't your friend selling the house with the panels? Anyone buying my house today would get a tax free income of c.£1,000 a year for the next 20 years. That said, if money is still owed on the panels, I am not sure that they can be removed/sold without the lender's approval.

sweaty_betty

Thanks all - much appreciated. Sounds like it might be a bit too tricky to sort out (especially the legal/contractual side).
I'm not sure why the buyers don't want to, unless as suggested they don't want to be tied into a contract.

I'm also cautious as we have a back ground floor extension that has a large skylight and not sure how easily installers would be able to fit scaffold/get up onto the roof with damaging the skylight...

Thanks again

Cardew

Hengus wrote: »

I have to ask: why isn't your friend selling the house with the panels? Anyone buying my house today would get a tax free income of c.£1,000 a year for the next 20 years. That said, if money is still owed on the panels, I am not sure that they can be removed/sold without the lender's approval.

I think most(all?) of the loans used to buy solar panels are loans in their own right i.e. the loans are not tied to the panels; someone posted a copy of the Barclays? loan agreement on such a scheme.

The solar equipment/system has very little value if removed, especially with the costs of scaffolding to access panels(and possible repairs to the roof) taken into account. So if the borrower defaulted there wouldn't be any collateral value if the loan was tied to the PV system.

The £1,000 incentive would appeal to the majority; but a sizeable minority, on aesthetic grounds, wouldn't have them on their roof at any price.

ProDave

Fact. Solar panels installed under the FIT scheme must remain on that original property. If you remove them and take them to a different house, you have to terminate the existing FIT contract, and you cannot enter a new FIT contract with second hand equipment.

Hence they have very little value if removed and sold.

If you install them, they will help reduce your daytime electricity usage so will save you money like that, but you will not get a payment for what you generate.

If he does still remove them and you don't want them, then contact me, I am looking to buy some and willing to have them just for the daytime saving alone.