Solar Panels

001220

Hi all.

I am going for through the process of purchasing a new home, and I am just querying solar panels if anyone has any info, as this house had many panels on the roof.

The panels are leasehold, on a 25 year lease from 2011, so how does this work? As it’s leasehold, what outgoing costs would we have, and my understanding is that either way we would save money as it would be pointless installing them? 

Many thanks, Paul 

Dolor

Your solicitor/conveyancer should be all over this. The house is subject to a ‘rent a roof’ lease. A third-party has put panels on the roof free of charge and it receives all Feed In Tariff and export payments. The homeowner gets to use all the solar energy that is generated (sadly, not possible).

Your solicitor needs to check that the original installer is still trading as it is responsible for maintenance: many companies have gone insolvent. The financial payments made have been assigned to A N Other. The vendor should be able to provide a copy of the lease agreement.

Some lenders are put off by ‘rent a roof’ schemes. 

https://www.onlinemortgageadvisor.co.uk/property-types/solar-panels-and-mortgages/

Qyburn

Do you mean the panels were leased to the householder? Or did the house owner "lease" the space to an organisation who then installed the panels. If the latter the normal deal was that the operator gets the subsidy paid for generation (FIT) that was available at that time. The householder benefits from being able to use the power generated.

Gerry1

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

QrizB

One other thing: the vendor will have the option to buy out the lease. It's something vendors often choice to do to increase the attractiveness of the property.

You might want to ask the vendor if they would be willing to do that. (Don't be too hasty to offer to cover the cost, see what they come back with.)

tim_p

Gerry1 said:

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

Don’t think the house owner is responsible for the inverter on a RaR scheme.  

Gerry1

tim_p said:

Gerry1 said:

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

Don’t think the house owner is responsible for the inverter on a RaR scheme.  

Assuming that the company is still going strong after 12+X years, hasn't been taken over and agrees it's responsible to the new owner...

Dolor

Gerry1 said:

tim_p said:

Gerry1 said:

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

Don’t think the house owner is responsible for the inverter on a RaR scheme.  

Assuming that the company is still going strong after 12+X years, hasn't been taken over and agrees it's responsible to the new owner...

I agree. This is a matter for the buyer’s solicitor. I sold a house with PV solar 5 years ago: the buyer’s solicitor wanted to see the MCS Certificate; proof of ownership; a roof structural survey; the electrical certificate; FIT transfer form; guarantees on panels and the inverter etc. I confess that pigeon netting wasn’t on the list.

eddddy

Are you buying with a mortgage?

(And/or when you come to re-sell in a few years time, do you want the property to be mortgageable?)



If so, you should check your  mortgage lenders rules on solar panel roof leases before spending money on legal fees, surveys searches, etc.

• Some lenders will not lend at all on properties with solar panel roof leases

• Some lenders will only lend on properties with solar panel roof leases if the lease complies with UK Finance requirements

• Some lenders will only lend on properties with solar panel roof leases if the lease complies with UK Finance requirements - plus some additional conditions

The key UK Finance requirement is that there must be a break clause in the lease saying that the lease terminates if the property is repossessed by the lender.

If there's no break clause in the lease already, the mortgage lender will insist that the lease be changed (by a deed of variation) to add one. The possible problems include:

• The solar panel company might refuse to add a break clause (because it doesn't benefit them)

• The solar panel company might be difficult to track down, or disinterested, or very slow moving

Here's what some of the mortgage lenders say about solar panels: https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/2114/



Then there are issues about insurance, maintenance (e.g. if panel(s) need to be removed to repair the roof, who pays for their removal and refitting), etc.

tim_p

Gerry1 said:

tim_p said:

Gerry1 said:

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

Don’t think the house owner is responsible for the inverter on a RaR scheme.  

Assuming that the company is still going strong after 12+X years, hasn't been taken over and agrees it's responsible to the new owner...

Highly unlikely they will be but even so the cost of a replacement inverter will far outweigh the typical returns an average user will benefit from such RaR system. 

QrizB

tim_p said:

Gerry1 said:

tim_p said:

Gerry1 said:

Check whether there's wire netting to stop birds getting underneath as that could be quite problematic; Rent a Roof schemes probably didn't bother.  However, retrofitting is much more expensive because it'll probably need scaffolding.

Check that the system is working efficiently and be prepared to replace the inverter when it fails.

Don’t think the house owner is responsible for the inverter on a RaR scheme.  

Assuming that the company is still going strong after 12+X years, hasn't been taken over and agrees it's responsible to the new owner...

Highly unlikely they will be but even so the cost of a replacement inverter will far outweigh the typical returns an average user will benefit from such RaR system. 

A 2kWp solar PV system on a FIT from 2011 will be bringing in about £1300 a year in FIT payments, while a replacement inverter is £4-500 plus fitting. The lease will be owned by someone (it's an asset) and they will want their payments, so I would expect them to replace a failed inverter PDQ.