Solar panels- legal implications
Released On 15th Feb 2024
It may be that you are considering buying a house fitted with solar panels, or that you are thinking of having solar panels installed on your present home. While you may feel that you will be saving money and doing your bit for the environment by having this renewable energy source on the roof of your home, you should be aware of the legal implications.
Solar panels mounted on the roof of a house will not usually need planning permission (subject to certain rules) but the associated electrical work will need to comply with Building Regulations. When buying a house with solar panels, you would expect to see a certificate under a Competent Persons Scheme for the electrical work. The panels themselves will usually carry certification under the Microgeneration Certification Scheme (MCS). Another question is whether the roof can safely support the solar panels and remain weatherproof.
The more usual situation is that the homeowner is the owner of the solar panels, but sometimes the homeowner has granted a lease of the air space to a solar panel company. Such an arrangement should only be entered into with the utmost caution. The solar panel company would be the tenant under the Lease while the homeowner is the landlord. The landlord will be obliged under the terms of the Lease not to interfere with the panels or do anything to compromise their ability to produce electricity. If the homeowner wishes to exit the arrangement early, this may have a substantial cost.
We once acted for clients who were astonished to discover that the air space above their house was registered at the Land Registry in the name of a solar panel company. Our clients had indeed had discussions with a solar panel company which concluded that their roof was unsuitable, but not before my clients had signed a Lease of the air space which had been promptly registered at the Land Registry. Our clients, when they encountered this time-consuming obstacle to their sale, had cause to regret their conversations with the solar panel company.
If a Lease of the air space is granted, then even if the arrangement appears to work well, it may prove an obstacle in a sale, because the buyer’s mortgage lender will have a check list of points which need to be satisfied, in order to ensure that the value of the security is not reduced.
In short, the advice to a homeowner thinking of having solar panels installed should be “look before you leap!”
