Thomas Edison said “I’d put my money on the sun and solar energy… I hope we don’t have to wait until oil and coal run out before we tackle that.”
There are currently 1.5 million homes in the UK with solar power systems, putting Britain fourth in the European solar panel league. This may come as a surprise with the amount of rain we get, but solar panels do not actually need direct sunlight to work. The number of daylight hours is more important than intense sunlight.
Solar power systems have become very popular for a variety of reasons. The owners of a solar power system receive a fixed amount per unit of energy generated and they also receive an export tariff per unit, for energy exported to the National Grid (the feed-in tariff). On top of this there are of course large possible savings to be made on electricity bills.
Recently there has been a large rise in “solar buyback schemes” or “solar equity release”. Companies looking to profit from the feed in tariff over the next 20 years will offer a lump sum payment to the owners of solar power systems in exchange for receiving the income for the energy generated. The original feed in tariff (for those who signed up before August 2012) was very generous and so this is a highly desirable investment for buyback companies.
Whilst this may seem attractive on first glance, there are some potential pitfalls:
Whilst access to funds may be very attractive and, in some cases, necessary, other sources of funds may be more financially sensible.
Solar Buyback is something to be particularly mindful of if you are considering selling your property for the following reasons:
It is also essential when considering a buyback that you yourself consult your mortgage lender.
If you are looking to buy a property it is equally important that you seek advice about any solar panels already installed on the property and how this may affect you.
If you are buying or selling a property then please contact our experienced Property Team here at David Gray who can help you through the process.
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