The idea of purchasing a home that already has solar panels installed is lucrative, with the promise of essentially free electricity and reduced bills from day one. Before making an offer, however, there are a few crucial questions you need to ask so as to avoid potential surprises.
Is It Owned or Leased?
The super basic facts: are the solar panels completely owned or leased? How owned panels work is simple – they move with the property, just like any other fixture. Leased panels, by contrast, have contracts that last for a period of 20-25 years (after which the contract typically extends month-to-month with variable rates). For Solar Panel Installation Bristol, contact //redbridgeandsons.co.uk/solar-pv-panels/solar-panel-installation-bristol/
Solar leasing agreements can create mortgage problems; it may include cost increases annually. A tenant may try to get away from a property which has leased panels, make sure you know exactly what it is that you are signing up to before committing.
Check the Paperwork
Request all documentation from the seller e.g. installation certificates, warranties and maintenance records. You will also require evidence that the system was installed by competent people and complies with building regulations. This also helps you for your insurance and any future warranty claims.
In case of owned panels, make sure these do not carry over any financial agreements running with them. This should be checked by your lawyer during conveyancing.
Understand the Export Agreement
There also needs to be a Smart Export Guarantee ( SEG ) tariff if the system is exporting any surplus energy back onto the grid. See the prevailing rate and if it is a transferable arrangement outcome. There are some quite lucrative tariffs so that could be worth a lot.
Review Performance Data
Ask the seller how much electricity has been made by the system recently. Now compare it to the initial estimates. Poor performing panels could mean there are problems to fix. It should be noted that in most modern systems, you have monitoring apps that this information is easily accessible from.
Warranty Transfer
Most solar panels have a 25 year performance warranty and a 10-year product warranty. In this case, the inverter has shorter warranties – often just 5 to 10 years. Make sure these warranties are transferable to subsequent owners and try to get a request of warranty admission from the maker.
Insurance Implications
Let your home insurance company know. They should be covered under buildings insurance by most insurers, although it might push up premiums a fraction.
Mortgage Considerations
Leased systems are especially subject to some restrictions by mortgage lenders on properties with solar panels. Get to your broker early before any issues arise later. Owned systems are typically acceptable to most lenders, but leased ones may be an issue for some.
In general, buyers love owned solar panels since they tend to add value and can be a big selling point for environmentally focused folks.