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Should I worry about FIT solar panels

Penguin2017
Penguin2017 Posts: 33 Forumite
in House buying, renting & selling
Hi All

we are making an offer to a house which has solar panels (4KW system) installed in early 2013 and owned outright by the seller.

He has been cagey on the FIT setup, but now he has written back with this "The system is registered for FIT payments and benefits from supply to the house as well as export to the grid (of any unused energy produced). We are planning to sell the future FIT income to someone like Solarbuyback leaving the new buyer with just the free energy supply"

Should I be worried or is this normal?
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Comments

  • spendinglikemad
    spendinglikemad Posts: 312 Forumite
    Yes I would be worried - your seller is trying to recoup some of his spend but then your house will have solar panels on that some other company receives the FiT on.
    You will however benefit from slightly reduced electricity bills if you use electricity whilst it is being generated.

    We are selling our property with fully owned panels (Feb 2012 FiT - highest rate) and we will transfer the Fit to the houses new owners on completion - we feel its one of the benefits of the house

    I would push the sellers to include the whole FiT in the sale otherwise you have any upkeep or repairs for very little in return

    SLM
  • ProDave
    ProDave Posts: 3,711 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Tell the vendor you will buy the house ONLY on the condition that the FIT is transferred to your name upon exchange of contracts and is included in the sale price.

    Make it clear if they won't do that, you will walk away.
  • eddddy
    eddddy Posts: 16,408 Forumite
    First Anniversary First Post Name Dropper
    This is the worrying bit...
    Penguin2017 wrote: »
    We are planning to sell the future FIT income to someone like Solarbuyback...

    Essentially, I'd guess this agreement would be committing you to supply electricity to Solarbuyback for perhaps 20 years... you need to fully understand the obligations the agreement puts on you and future owners during those 20 years.

    Also, your mortgage company might object. (If they need to repossess, they won't want to be in a position where they take on responsibility for supplying electricity to Solarbuyback).

    To be honest, I wouldn't touch an agreement like this.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    ProDave wrote: »
    Tell the vendor you will buy the house ONLY on the condition that the FIT is transferred to your name upon exchange of contracts and is included in the sale price.

    Make it clear if they won't do that, you will walk away.
    This, this, and more of this. With bells on.
  • cloo
    cloo Posts: 1,291 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Yes, transfer FIT to you or it could create all kinds of problems on resale.
  • Glover1862
    Glover1862 Posts: 410 Forumite
    First Anniversary First Post
    I wouldn't touch it without the FIT being fully transferred during conveyancing, I purchased a property with solar panels and the everything was transferred over to me, 90% of the questions from the solicitors were about the solar. No one will agree to their idea so don't be afraid of walking away, tell them it's a dumb idea, I would imagine your solicitor has already told them that.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    What everyone else has said, and adding the point that this means you don't have a clean break with your buyer but are lumbered either with him or whoever he has agreed the FIT with, for the next umpteen years.

    Pllus it will undoubtedly cause complications with any future sale and what's worse since you won't own that agreement there will be nothing you can do to change things to mitigate problems.

    Phrases involving bargepoles come to mind.
  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
    By him pledging to sell the fit to some third party he is effectively making the property unmortgageable.

    The vendors (the executors of the owner's estate) had to legally undertake buy out the panels on the property I was buying on completion so they became mine before the mortgage lender agreed to lend. They were on a rent a roof.

    You vendor wants to do the opposite. Run Dougal... Quite fast.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • Penguin2017
    Penguin2017 Posts: 33 Forumite
    Thanks All!
    I was actually thinking this was okay, but have now made it clear on the solar panels that they and FIT need to owned by us
  • sevenhills
    sevenhills Posts: 5,874 Forumite
    First Anniversary Name Dropper First Post
    Penguin2017 wrote: »
    Thanks All!
    I was actually thinking this was okay, but have now made it clear on the solar panels that they and FIT need to owned by us

    On my house I believe the FIT payments are around £300 per year, only bought it a few months back so no payment yet, but the seller would be a fool to jeopardise the house sale just for <£500 per year.
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