Skip to main content

Quick Find

Good Energy
2009 Green Web Awards Winner!

YouGen Blog

Browse blog entries by category

What happens to the feed-in tariff when you sell your house

Posted by Cathy Debenham on 11 November 2011 at 4:53 am

Can I continue to receive the feed-in tariff payments on a solar PV or wind turbine installation after I've sold the house, is a question I'm being asked more often. My understanding of the original plans for feed-in tariffs (Labour's document) was that when someone sells their house they would sell the PV equipment, and the right to receive the feed-in tariff payments, with it.

However, there are a number of stories about it being possible to retain ownership of the panels and the feed-in tariff payment circulating, so I asked Ofgem whether there is an official line on this?

Ofgem's response is as follows: 

"Under the Feed-in tariff (FIT) the owners of installations are able to nominate others to receive the FIT payments so the scenario described above is valid, but very unlikely as usually if an installation is sold as part of the house sale then the new FIT Generator (legal owner) can and will nominate someone else to receive payments.

"I’d imagine this arrangement would be subject to contracts between the old and new owner of the house/installation."

So if you get the paperwork right, it is possible. But my guess is that it's not going to make it easier to sell your house. It's like a rent a roof scheme, but without the reassurance of a contract with an installer that makes them responsible for maintenance and upkeep of the panels.

If I was the buyer, I wouldn't be keen. I'm also pretty confident that anyone needing a mortgage would find their mortgage company unwilling to play ball. But if you've got experience of such a situation, do let us know in the comment section below.

Photo by jetsandzeppelins

If you have a question about anything in the above blog, please ask it in the comments section below.

Comments

3 comments - read them below or add one

Marble Solar Ltd

Marble Solar LtdComment left on: 23 April 2012 at 4:45 pm

As said in "Feed-in Tariffs, Governments Response to the Summer 2009 Consultation (February 2010)", published by the Dept of Energy and Climate Change, ā€œGiven the length of FITs payments (10 to 25 years), there will be frequent instances where the ownership of the property hosting the generating equipment on which FITs is paid changes. We expect standard property ownership rights to be applied to the ownership of the generating equipment. When ownership of that property changes we will expect the ownership of the generating equipment and FITs payments to also change and pass to the new owner of the property and this will need to be notified to the scheme administrator. It will be left to the market for the previous owner to be compensated for the remaining value of the FITs payments and on-site benefits (e.g. through a higher price paid for their property).ā€


So, hence, when a house is sold, the new owner should benefit from the previous owner contracted FITs.

report abuse

Cathy Debenham

Cathy DebenhamComment left on: 5 December 2011 at 2:35 pm

My understanding is that they would get the same rate as the original owner did for the remaining term. As you say, it's a pretty attractive prospect for a potential buyer.

report abuse

deeppurple

deeppurpleComment left on: 21 November 2011 at 7:34 pm

If the ownership of the panels changes does the new owner benefit from the previous owner's contracted FIT rate and for the remaining term? If so then this should add a reasonable amount to the value of the house. If not then, particularly in light of the 50% slash in FIT rates which is on the table, there must be scope for a legal arrangement for the previous owner to continue to reap the FIT, maybe with some percentage payment to the new owner.

I suspect  that this is an issue which will fairly soon gather some case history and a few test cases will establish a set of viable options and associated benefits, togther with some legal paperwork which will protect both the seller and buyer.

report abuse

Leave a comment

You must log in to make a comment. If you haven't already registered, please sign up as a company or an individual, then come back and have your say.

Observer Ethical awards Winners 2011