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Check contracts before rushing to install solar panels- 01/11/2011
People rushing to have solar panels installed before 12 December to take advantage of the top rate of Government Feed in Tariff (FIT) payments before they are more than halved from 1 April 2012, should take the time to review their contracts, especially if they are renting out their roof space, warns Shropshire law firm FBC Manby Bowdler LLP.
David Lucas, a specialist property solicitor and partner in the Shrewsbury office of FBC Manby Bowdler, warns that people renting out their roof space to solar panel installers, to gain free electricity or share the money from FIT payments, could find it impossible to ever get rid of the solar panels, difficult to sell their home, and face breaching their mortgage conditions.
“Getting the installation contract right for home owners paying for their own solar panel installation is tricky enough and should ideally be looked at by a solicitor, but for those people looking to take advantage of the FIT payments by renting their roofs, it is essential to have their contract checked, as there are many traps they could fall into,” says Mr Lucas.
“Unless the agreement is drafted correctly the property owner could end up granting the installer a protected tenancy under the 1954 Landlord and Tenant Act, which means that if the installer wishes to maintain solar panels on the roof after the end of the lease, potentially for ever, he can.
“Mortgage lenders are likely to need to give their approval for the leased installation and may withhold it if they believe it will make the home harder to sell on. Future prospective purchasers may not wish to take over the contract. However, this may not be the case if the agreement is properly drafted,” says Mr Lucas.
“Solar panel installation companies usually operate with standard contracts, which often ensure that the lease works in their favour, and may not take into account the needs and wishes of the home owner, so it makes sense to obtain the advice of a specialist solicitor before proceeding,” concludes Mr Lucas.