Purchasing a house with solar panels

tommyedinburgh

Making a purchase of a property with solar panels installed is not something I am overly knowledgeable about.

A property on our shortlist has this on the listing/brochure:

Potential purchasers should note there are 18 solar panels with 14 years to run index linked on the maximum feed in tariff of 54.17p per kw.

Any ideas what the implications/challenges might be with this, if any? I have googled it with little success.

ProDave

Implications are YOU get paid currenly 54p perkWh generated by the panels for the next 14 years, plus you get to use the free electricity they generate.

18 panels is likely to be a 4kW array and likely payments in the order of £1500 per year usually paid quarterly (depending where the house is and how much sun) so a total of nearly £20K for you to collect over the next 14 years.  You will need to submit a quarterly generation meter reading.

The only thing is to make SURE the owner transfers the FIT contract into your name and uses the correct procedure to do that. Make that a condition of any offer.

tommyedinburgh

ProDave said:

Implications are YOU get paid currenly 54p perkWh generated by the panels for the next 14 years, plus you get to use the free electricity they generate.

18 panels is likely to be a 4kW array and likely payments in the order of £1500 per year usually paid quarterly (depending where the house is and how much sun) so a total of nearly £20K for you to collect over the next 14 years.  You will need to submit a quarterly generation meter reading.

The only thing is to make SURE the owner transfers the FIT contract into your name and uses the correct procedure to do that. Make that a condition of any offer.

Thank you for replying.

anselld

Since 1 April the maximum FIT is 55.36p per kW.

But yes, agree with ProDave, make sure the vendors own the panels outright and have not leased them to a third party (the advertising wording suggest they do but get explicit confirmation) and make sure your solicitor is aware and puts the transfer into your purchase contract.

Solicitors don't always understand Solar issues so make sure you check the fine detail in this respect.

ProDave

You will also be responsible for maintaining the system.  e.g if the inverter fails you will need to replace it.  If you don't you will stop generating electricity and your payments will stop, so it is in your interest to do so if it breaks.

You might want assurance that it is in good order still, e.g a copy of his last years FIT statements showing the panels are still generating properly. 

tommyedinburgh

As always, this is a great place for information.