Lease free sell your FIT Scheme?

Asset666

We installed our panels in 2011 so get the highest payments, over the past 12 months we received £1700 + in FIT p.a.  Cost of panels £10k was added to mortgage which has been paid off, so the FIT is all profit now. We received a letter about selling our FIT but retaining ownership, the new ‘owner’ of the FIT will maintain the system including inverter replacement. We/ future house owner will still receive the free electricity and own the panels. We’ve been offered £10,300 ( may be able to increase this slightly). The sales person told me that it is likely that we will need to replace the inverter soon ( cost approximately £1000) and that the panels become less efficient as they get older, so the FIT payments will decrease. But he would say that, wouldn’t he?? We are looking to downsize in 3-4 years,  if we took this money now we would have 6 years before we start to lose on the deal. We are saving for early retirement so that lump sum would be very helpful. I’ve asked about the implications for any potential buyer, especially one needing a mortgage,  and been assured that as the ownership of the panels stay with the property owner there  aren’t any. But again, he would say that wouldn’t he......So my questions are.... has anyone done this? Clearly there are some very knowledgeable people on here, in your view what are the disadvantages ( as it sounds too good to be true, so I’m naturally suspicious)? Is it accurate to say that generation levels reduce as the panels age and a new inverter is inevitable? Thanks in advance.

EricMears

It does indeed seem "too good to be true" !   Ask to see their 'standard contract' and run it past your solicitor and ask him/her how it might affect a future sale.

If they're not going to 'own' the panels, why would they be willing to replace the inverter ?
If you've earnt £1700 over last 12months,  you can expect to earn at least £7,000 over next 4 years and more than their £10,300 in 6 years.  With present interest rates there's little advantage in getting a lump sum now instead of a steady income stream (which of course you can pay into a savings account)

Asset666

Thanks Eric. It would be worth taking the contract to a solicitor.  The  lump sum will go down as the years pass, may be I should get an estimate of how much we could get in 2 years? We will definitely have downsized within 5 years, so financially it makes more sense to sell to get the lump sum now, especially as inverter life spans seems to be about 10 years, so it may need replacing soon.

Exiled_Tyke

I'd stay well away unless you are desperate for the money.  They are only going to offer such a scheme if they think they will  win which means you will lose.  I'd rather keep control even if I do have to replace the inverter.   It must be a pretty big set up with a Solar Edge inverter if it's going to cost £1000 to replace?  And panel degradation is apparently very low  with panels performing better than predicted in the long term. I don't know anyone who has yet noticed a difference in performance of their panels.    It could make selling the house more difficult and put some buyers off.    All in all I don't like the 'smell' of these schemes. 

mickyduck55

Just had a flyer through the mail offering me this deal... shredded already

DiggerUK

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

mickyduck55

DiggerUK said:

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

No noticeable degradation on my panels so far I am surprised how consistent the annual generation is

Exiled_Tyke

mickyduck55 said:

DiggerUK said:

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

No noticeable degradation on my panels so far I am surprised how consistent the annual generation is

Yep. I thought that current thinking is the degradation is no where near has bad as was predicted say ten years ago.  Similarly I've not noticed any degradation at all so far.  

ASavvyBuyer

Exiled_Tyke said:

mickyduck55 said:

DiggerUK said:

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

No noticeable degradation on my panels so far I am surprised how consistent the annual generation is

Yep. I thought that current thinking is the degradation is no where near has bad as was predicted say ten years ago.  Similarly I've not noticed any degradation at all so far.  

Same here, very similar generation every year since install with no noticeable degradation.

Martyn1981

Exiled_Tyke said:

mickyduck55 said:

DiggerUK said:

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

No noticeable degradation on my panels so far I am surprised how consistent the annual generation is

Yep. I thought that current thinking is the degradation is no where near has bad as was predicted say ten years ago.  Similarly I've not noticed any degradation at all so far.  

Yeah, he's made similar claims before. Just the usual nuker nonsense amplified by the acoustics from the overhead bridge.

The most 'interesting' report I've read is almost a decade old and that has post 2000 mono-silicon degradation at 0.36% pa, and pre 2000 at 0.47%, so getting better fast, and also worth remembering that since about the middle of the last decade, suppliers stopped rating their panels with a -5/+5% variance, and switched to 0/+5%, so most installs probably start at a higher Wp than paid for.

legoman62

DiggerUK said:

It is now widely realised that solar arrays are not the advantage originally hoped for when selling a property.  Your situation is a case in point.

There is however much information available now of the various pitfalls. This article is one picked at random for you to consider.

The other issue is the degradation of power produced over time, it is normally at  least 1% a year so, you are already about 10% down from new. Anybody wanting to eventually purchase your house will be faced with a much higher figure..._

Difficult to notice any degradation of my panels.
More variances due to the weather.
Almost completed their ninth year and it's looking to be my best ever