The pitfalls of solar panels

It is difficult not to notice the outbreak of solar panels across the nation's roof slopes.  Householders have been embarking on their own “green” adventure with subsidised solar energy generation, many are tempted by the promise of long-term free electricity and, for the lucky few, perhaps an income from selling their spare electricity to the nation's power companies.  What could possibly go wrong?

Well, quite a lot is the simple answer.  The technology itself is sound, but some installations will be less productive than homeowners hoped due to geographical location or orientation.  Perhaps more worryingly, in the coming years some unfortunate owners are likely to find that their houses have been rendered potentially less saleable by their venture into green energy.

Some home-owners have paid outright for panels and installation at considerable cost. They will benefit from free electricity and sell any surplus to the national electricity suppliers under a system of Feed In Tariffs (FITs).  This might save £500 annually on the domestic energy bill and, under the initial higher tariff (which has since been significantly reduced), could produce a real income – potentially not a bad return on their initial investment.

The majority of owners, however, opt to avoid an initial investment but have more potential drawbacks in the longer term.  In such cases the PV (Photovoltaic) panel providers retain ownership of the panels and take a lease, usually for 25 years, on the roof and airspace above.  They install the panels for free and provide free electricity to the home-owner, but retain income from the FITs payment.  The attraction to the home-owner is obvious: free electricity for the long term at no cost.

A 25 year lease of a roof is technically no different from leasing a part of your garden or the house itself.  It may be less intrusive but the legal commitment is the same.  More seriously, there may be implications for maintenance of the installation or of the roof covering itself.  It is far from unusual for the roof of an older property to require periodic maintenance during a 25 year period.  For example, does the lease agreement clearly set out the responsibilities for removing the solar panels while works are carried out?

Research shows that many lenders expect solar panels to affect the marketability of a property, not least due to a negative 'kerb appeal'.  Some installations are more intrusive than others and could deter potential purchasers.  Even when the legal aspects of the arrangement have been properly dealt with, the practical implications of panels on the roof for the 25 year lease term remain.  Building Regulations’ approval is required if panels add more than a third to the weight of the existing roof covering, so a proper initial assessment is critical.  Avoiding damage during this work is difficult, so completing effective repairs should be a standard part of the installation process.

Our advice would be to check carefully so that you do not unwittingly become entangled in any arrangement which is likely to have a long term adverse impact on your most valuable asset, your home.

For more information, please contact Kurt Goddard on 01206 217391.