Solar Panels : A Practical Guide for Home Buyers and Sellers

Did you know that under 2 million homes in the UK now have solar panels? 

It’s a great way to cut energy costs and move towards renewable energy, but if you’re planning to sell your home or buy one with solar panels, there are a few important things you need to know. 

Don’t worry—we’ve broken it down for you in simple, user-friendly terms so you can smoothly sail through the process.

Who Owns the Solar Panels? It Matters!

The first thing you’ll need to figure out is who owns the solar panels. Solar panel systems on homes generally fall into two categories:

1. Leased Panels
   The panels aren’t actually yours to own. Instead, a company installs and maintains them, and you lease your roof space to them.

2. Owned Panels
   You (or the seller) own the solar panels outright, which means you get the full benefit of the energy savings and any income from selling electricity back to the grid through a scheme called the Feed-in Tariff (FIT).

Knowing which type you’re dealing with is crucial since it affects how you handle the paperwork, negotiations, and legal checks.

Selling a Home with Solar Panels

If you’re selling a property with solar panels, here’s a heads-up: you’ll need to gather several documents to provide to your solicitor and the buyer. The sooner you do this, the smoother your sale will be. Here’s what you’ll need based on your setup:

Must-Have Documents (Regardless of Ownership Type)

• Roof Survey
  A basic check done before the solar panels were installed to ensure your roof could handle them.

• Planning Permission (if needed)
  Most homes don’t need planning permission for solar panels, but if you’re in a conservation area or own a listed property, you might.

• Building Regulation Certificate
  While this might not be needed for the panels themselves, electrical work tied to the installation usually requires a compliance certificate.

• MCS Certificate
  This proves the installer used certified equipment and followed the right procedures.

• Covenant Consent (if required)
  Check your property deeds. If they restrict external changes like adding solar panels, you’ll need to provide proof of consent.

Extra Documents if You Lease the Panels

• The Lease Agreement
  This is the contract between you and the company that owns the panels. Don’t have it? Your solicitor can usually fetch a copy from the Land Registry.

• Landlord and Tenant Notices
  These documents confirm the lease terms won’t change over time.

Extra Documents if You Own the Panels Outright

• Guarantees/Warranties
  Find any paperwork that covers the panels’ performance or installation.

• Feed-in Tariff (FIT) Agreement
  Using solar panels to earn money? You’ll need a form from your energy provider to transfer this benefit to the buyer.

• Loan Details (if any)
  If you borrowed money to pay for the solar panels and still owe some of it, you’ll need to repay the loan before the sale. Ask your lender for a statement.

• Maintenance Records
  Do you have any contracts or logs showing care and servicing of the panels? These will be useful to the buyer.

Buying a Home with Solar Panels

For buyers, solar panels can be a fantastic bonus, providing free electricity and even extra income. But before you get too excited, make sure you ask the right questions and verify all the details. Are the panels leased, or does the seller own them outright? This makes a big difference in how the purchase will go.

Things to Check for Leased Panels

• Can your mortgage lender approve the lease agreement with the solar company?
• What does the lease say about maintenance? Who pays for repairs if something breaks?
• If the panels need removing, who covers the cost?
• Are there any roof repairs or access issues tied to the lease?

Things to Check for Owned Panels

• Buildings Insurance
  Will your insurer cover the panels? Double-check to avoid future surprises.

• Roof Strength
  Solar panels are heavy! Get a survey to confirm the roof is in good shape.

• MCS Certification
  Check that the panels are certified. It’s often necessary for mortgage approval.

• Renewable Energy Consumer Code (RECC)
  Ensure the installation company followed high industry standards. It’s easy to verify this online.

• Planning Permission
  If the property is a listed building or in a protected area, planning permission may have been needed. Your solicitor will confirm this.

• Building Regulations
  Just like sellers, you’ll need to check the installation’s electrical work meets the standards.

• Guarantees
  Ensure any warranty details are shared with you and still valid.

• Feed-in Tariff (FIT)
  If the panels generate income, make sure the seller sets up the formalities to transfer this benefit to you.

Tips to Keep Things Hassle-Free

Solar panels are a win for energy savings and the planet, but dealing with them during a home sale or purchase can feel a little complicated. These tips can help make the process stress-free:

• Act Early
  Sellers, get your documents in order as soon as you decide to sell. Buyers, start asking questions about the panels right when you express interest in a property.

• Get Expert Advice
  Work with your solicitor from the start and, if needed, have a surveyor inspect the roof. This saves time and prevents issues later.

• Double-Check Everything
  Whether it’s a warranty for the panels or details in the lease, don’t assume it’s fine. Having all the facts avoids costly surprises down the line.

With a little planning and the right team by your side MJP Conveyancing Solicitors , buying or selling a home with solar panels can be a shining success!