Many companies are now looking to benefit from the coalition government’s Feed in Tariff Scheme (FIT) by renting roof space from homeowners to host solar panels. Under the scheme, the leasing company can then sell the generated energy to power suppliers for a profit.
However, with many leases running for up to 25 years, often without a break clause, home owners can find themselves tied to agreements which could put them in breach of their mortgage arrangement, discourage prospective buyers and even create structural problems their property.
While providing homeowners with additional income, the potential consequences can be severe, RICS points out. Furthermore, it says, until the Green Deal is introduced in 2012, installers are not formally accredited, meaning that installations can be carried out by individuals poorly qualified to properly assess the installation process and the potential impact on the property.
‘While we wholeheartedly support the use and production of green energy, it is important that consumers are aware of the potential dangers before entering into these agreements. Leasing roof space can generate much needed additional income for households,’ said RICS director David Dalby.
‘However, anybody considering it should consult their mortgage provider and seek legal advice beforehand. The terms of the lease may not be acceptable to all lenders, so some homeowners could find themselves in the extremely difficult position of being tied to a long term lease, yet in violation of the terms of their mortgage,’ he explained.
‘Furthermore, with installers currently not being subject to formal regulation, the addition of solar panels could potentially create structural problems on a property as some roofs may not be strong enough to take the additional weight. It is also important to ensure that the roof covering is in good condition before any installation takes place, to reduce the risk of future maintenance problems,’ he added.
RICS recommends that people always obtain their mortgage lender’s consent and seek legal advice on the terms of any agreement before entering into a contract and if looking to sell their property within the duration of any lease, be aware that the lease may have to be taken on by a future buyer, whether they want it or not. This could affect saleability.
It also says that if consumers sign the agreement outside of the company’s premises, there is a seven day ‘cooling off’ period allowing the contract to be cancelled.
