Published 02 November 2011

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 lease agreements relating to solar panels.

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 before you sign up there are lots of factors to consider, including:

• Many leases run for 25 years without break clauses – you need to consider how changes in technology over that time may result in the panels becoming obsolete/inefficient long before the lease expires.
• Ensure the panels are from a reputable manufacturer to the latest possible standard, as their efficiency does tail off with age.
• Check with your mortgage provider that you are not likely to breach the terms of your mortgage and obtain their written consent before entering any contract.
• Check with your buildings insurer that they will cover solar panels (theft/vandalism/storm damage).
• Check that your roof is structurally sound and capable of taking the additional weight of the solar panels and check the contract for your options should you need to make changes or undertake repairs to your roof to be sure you are allowed to do so (and at who’s cost).

With many leases running for up to 25 years, often without a break clause, homeowners can find themselves tied to agreements which could put them in breach of their mortgage arrangement, discourage prospective buyers and even create structural problems at their property. While providing homeowners with additional income, the potential consequences can be severe.

Furthermore, 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.

Leasing roof space can generate much-needed additional income for households. 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.