Buying a house with solar panels

Alnat1

Seller has now realised the panels and FIT belong with the house and whoever owns it, not to him, so he is trying to make some cash out of a deal.

You could get new panels fitted with a bigger output now, for less than he is asking (although no FIT) Call his bluff and tell him you don't want them, see if he comes up with a lower offer (2-3K?)

Krakkkers

There will be documentation to transfer the FIT payments to new owner, make sure your solicitor is aware of this.

Solarchaser

I'd also say to offer 2k, no more than that.
Or simply reject the 8k offer and let them be removed.

As others have said,  the person selling will have realised there is no fit carry to a new house, and so is trying to recoup money.
If we were being generous,  we would say the person has given a high offer for you to knock it down.
Or being super generous,  perhaps they paid well over the odds for those panels and thinks that's a fair offer

Krakkkers

They will carry the FIT payments to their new house (without the panels) unless the transfer documentation is filled out.

Officer_Dibble

So does that mean that without the paperwork being done the buyer keeps any electricity generated they can use, but the seller keeps the FIT payments? Could be the ideal compromise!

Krakkkers

Correct. But not ideal.

Krakkkers

Of course the new owner would need to send in the generation readings.

Petriix

Let's put things into perspective: a 4kWp array installed in 2017 would have likely cost £4000-5000, maybe a little more if they didn't shop around. If they're south facing then they'll generate ~ 4,000kWh per year. That will earn ~ £300 per year, increasing at RPI for the next 15 years. You'll likely use 25% of what you generate, saving you a further £350 off your bill. 

Allowing £800 for replacing the inverter that's a net gain of about £9,000. However, a mortgage which is £8,000 lower will save you £6,000 in interest (over 15 years at 4%) so, if interest rates and electricity prices stay as they are, you'd be about £5k down overall.

The break-even point would be a little over £5,000, but you wouldn't really want to be gambling that amount; interest rates may go up and electricity prices down leaving you out of pocket. But I think the mooted £2-2.5k is a little low in the current climate.

A reasonable way to calculate it would be a bit like the Duckworth Lewis method in cricket. The original owner has had 1/4 of the utility of the system, but has benefitted from the inverter's warranty, the peak capacity of the panels and lower interest rates. In all I'd suggest paying 2/3 of the 2017 price would be fair. That should be about £3,000. Any more and you'd be worried about not recovering the cost in the worst case, but you'd likely regret it if your lower offer was rejected and they called your bluff by removing them.

However, it's entirely possible that the current owner was ripped off and still believes the value is as inflated as the price they paid. If that's the case, you may struggle to get them to see sense. 

If you do agree to keep the panels, you absolutely need to ensure the FIT transfer is done as part of the sale. Contact the current FIT provider and establish exactly what they require to make the transfer and ensure it's all done by your solicitor, otherwise it could come back to bite you. 

Screwdriva

I would call his bluff and offer him £1500 firm. 

Petriix

Screwdriva said:

I would call his bluff and offer him £1500 firm. 

But wouldn't you be disappointed to lose out on ~ £5,000 worth of saving/income if he did decide to remove them?

If I was selling, I'd expect my 2017 3.42kWp system to add about £2,750 to my house value. If someone insisted on less than that, I'd consider taking them down.

£3,000 is probably about right.