Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Penguin2017
    • By Penguin2017 9th Mar 18, 3:03 PM
    • 30Posts
    • 5Thanks
    Penguin2017
    Should I worry about FIT solar panels
    • #1
    • 9th Mar 18, 3:03 PM
    Should I worry about FIT solar panels 9th Mar 18 at 3:03 PM
    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?
Page 1
    • spendinglikemad
    • By spendinglikemad 9th Mar 18, 3:15 PM
    • 287 Posts
    • 1,634 Thanks
    spendinglikemad
    • #2
    • 9th Mar 18, 3:15 PM
    • #2
    • 9th Mar 18, 3:15 PM
    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
    Family of 4 plus cat & pup!
    • ProDave
    • By ProDave 9th Mar 18, 3:24 PM
    • 848 Posts
    • 962 Thanks
    ProDave
    • #3
    • 9th Mar 18, 3:24 PM
    • #3
    • 9th Mar 18, 3:24 PM
    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
    • By eddddy 9th Mar 18, 3:24 PM
    • 6,344 Posts
    • 6,208 Thanks
    eddddy
    • #4
    • 9th Mar 18, 3:24 PM
    • #4
    • 9th Mar 18, 3:24 PM
    This is the worrying bit...

    We are planning to sell the future FIT income to someone like Solarbuyback...
    Originally posted by Penguin2017
    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
    • By AdrianC 9th Mar 18, 3:55 PM
    • 17,395 Posts
    • 15,759 Thanks
    AdrianC
    • #5
    • 9th Mar 18, 3:55 PM
    • #5
    • 9th Mar 18, 3:55 PM
    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.
    Originally posted by ProDave
    This, this, and more of this. With bells on.
    • cloo
    • By cloo 9th Mar 18, 4:40 PM
    • 1,037 Posts
    • 1,004 Thanks
    cloo
    • #6
    • 9th Mar 18, 4:40 PM
    • #6
    • 9th Mar 18, 4:40 PM
    Yes, transfer FIT to you or it could create all kinds of problems on resale.
    • Glover1862
    • By Glover1862 9th Mar 18, 4:42 PM
    • 270 Posts
    • 132 Thanks
    Glover1862
    • #7
    • 9th Mar 18, 4:42 PM
    • #7
    • 9th Mar 18, 4:42 PM
    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
    • By AnotherJoe 9th Mar 18, 9:20 PM
    • 9,436 Posts
    • 10,442 Thanks
    AnotherJoe
    • #8
    • 9th Mar 18, 9:20 PM
    • #8
    • 9th Mar 18, 9:20 PM
    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
    • By cjmillsnun 9th Mar 18, 9:33 PM
    • 600 Posts
    • 732 Thanks
    cjmillsnun
    • #9
    • 9th Mar 18, 9:33 PM
    • #9
    • 9th Mar 18, 9:33 PM
    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
    • By Penguin2017 10th Mar 18, 12:30 PM
    • 30 Posts
    • 5 Thanks
    Penguin2017
    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
    • By sevenhills 10th Mar 18, 1:13 PM
    • 1,170 Posts
    • 433 Thanks
    sevenhills
    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
    Originally posted by Penguin2017
    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.

    • Glover1862
    • By Glover1862 10th Mar 18, 2:35 PM
    • 270 Posts
    • 132 Thanks
    Glover1862
    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
    Originally posted by Penguin2017
    Also, you need to submit a reading every quarter, how do they plan on getting this reading? You would have to agree for them to enter your house, just isn't going to happen.
    • cjmillsnun
    • By cjmillsnun 10th Mar 18, 10:28 PM
    • 600 Posts
    • 732 Thanks
    cjmillsnun
    Also, you need to submit a reading every quarter, how do they plan on getting this reading? You would have to agree for them to enter your house, just isn't going to happen.
    Originally posted by Glover1862
    That part is easy. They'd fit a smart meter.
    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
    • Glover1862
    • By Glover1862 10th Mar 18, 11:47 PM
    • 270 Posts
    • 132 Thanks
    Glover1862
    That part is easy. They'd fit a smart meter.
    Originally posted by cjmillsnun
    Ok, didnít know they are available for Solar, I not been offered one, energy supplier is ovo and FiT with British Gas.
    • ashe
    • By ashe 11th Mar 18, 9:02 PM
    • 530 Posts
    • 367 Thanks
    ashe
    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.
    Originally posted by sevenhills
    I don't think the seller would get the annual cash, I think they are proposing to get a lump sum for the FIT from a firm that does such transactions.
    • pinklady21
    • By pinklady21 11th Mar 18, 9:21 PM
    • 562 Posts
    • 384 Thanks
    pinklady21
    The FIT amount will depend on when the panels were installed, how efficient they are, and their orientation on the roof.
    for example, I have panels, and receive a FIT of around 22p per kwh that is generated and a smaller amount for an "export tariff" for the electricity sent to the grid.

    Panels installed earlier will have a larger FIT, more recent installations less as the government has cut the FIT subsidy over time.

    The panels can be moved, but the FIT stays with the property, so there would not be much advantage in taking them away.

    When/if I sell the house, the panels will stay put as part of the fixture of the house, and I will arrange to transfer the FIT to the new owner. It is worth around £900 per year, so a decent index linked income for a good few years yet.

    Agree with other posters, under no circumstances buy the house without also getting agreement in the contract that the ownership of both the panels and the FIT passes to you as the new owner. Anything else is silly for the seller to contemplate, and far too complex for the buyer to be bothered with!
    • cjmillsnun
    • By cjmillsnun 18th Mar 18, 1:57 PM
    • 600 Posts
    • 732 Thanks
    cjmillsnun
    Ok, didnít know they are available for Solar, I not been offered one, energy supplier is ovo and FiT with British Gas.
    Originally posted by Glover1862
    I don't think they are generally available, however a business can arrange to get one fitted. I have a smart generation meter that EON can't see that was used by Freetricity to provide readings when they owned the panels. Now that I own the panels I have unscrewed the aerial so that it can't communicate with Freetricity. I am contemplating finding out if EON will replace it with a standard meter (I have my doubts that they will).
    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
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

131Posts Today

1,915Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin