15. Solar panels (owned and leased)

Solar panels, also known as photovoltaic (PV) panels, are devices designed to capture sunlight and convert it into electricity. They are a crucial component of solar power systems and have a primary role in harnessing solar energy for various applications. Solar panels consist of multiple solar cells made from semiconductor materials, such as silicon, which generate direct current (DC) electricity when exposed to sunlight. This DC electricity can be converted into usable alternating current (AC) electricity for powering homes, businesses, and other electrical devices.

The operation of solar panels relies on the photovoltaic effect, where photons of sunlight knock electrons loose from atoms within the solar cells, creating an electric current. Solar panels are typically installed on rooftops or mounted on the ground in areas with ample sunlight exposure. They are a clean and sustainable source of renewable energy, reducing electricity bills and decreasing reliance on fossil fuels.

Owned vs. leased

Owned solar panels

Ownership: When you own solar panels, you have full ownership and control over the solar power system. You or your chosen solar provider purchase and install the panels on your property.
Costs: While the initial upfront cost of purchasing and installing solar panels can be relatively high, you benefit from long-term savings on your electricity bills. You also may be eligible for various financial incentives, such as tax credits, rebates, and net metreing, which can significantly reduce the overall cost.
Savings: You can generate your electricity and potentially generate excess power that can be sold back to the grid, earning you credits or income.
Maintenance: As the owner, you are responsible for the maintenance and repair of the solar panels. Depending on the warranty, you may receive manufacturer support for a specific period.
Home value: Owned solar panels can increase the value of your property, making it more attractive to buyers if you decide to sell your home.
Long-term investment: Owned solar panels are typically considered a long-term investment, with the potential for a return on investment (ROI) over time.

Leased solar panels (Solar lease or Power Purchase Agreement - PPA)

Ownership: When you lease solar panels, you do not own the system; instead, you enter into a contractual agreement with a solar provider or leasing company. They install and maintain the panels on your property.
Costs: Leasing solar panels typically requires little to no upfront cost, making solar energy more accessible to a broader range of homeowners.
Savings: While you may benefit from reduced electricity bills, the savings may be less compared to owning the system. You often pay the leasing company a fixed monthly fee for the energy produced by the panels.
Maintenance: The leasing company is responsible for the maintenance and repair of the solar panels during the lease term.
Home value: Leased solar panels may not significantly impact your property's value, as the ownership and control remain with the leasing company.
Contract terms: Lease agreements often come with specific contract terms, which may include a fixed period (e.g., 20 years) and terms for buying out the system or extending the lease at the end of the term.
Flexibility: Leasing provides flexibility, as you can access solar power without the financial commitment of ownership. However, you may have less control over the system and its benefits.

The choice between owning and leasing solar panels depends on individual circumstances, financial considerations, and preferences. Owning offers long-term financial benefits and ownership control, while leasing provides accessibility and lower initial costs. It is essential to carefully evaluate the terms of lease agreements and consider the potential long-term advantages of ownership when deciding which option is best suited for your energy needs and goals.

Microgeneration Certificate Scheme (MCS) certificate

The Microgeneration Certificate Scheme (MCS) certificate is an essential credential within the solar panel industry, carrying substantial significance for various stakeholders involved in the installation and operation of solar energy systems.

Quality assurance	The MCS certificate serves as a hallmark of quality, assuring consumers that the installed solar panel system has undergone rigorous testing and meets stringent standards for performance, durability, and safety. This assurance is critical in instilling confidence in consumers regarding the reliability and effectiveness of their investment in solar energy.
Installer accreditation	One of the key components of obtaining an MCS certificate is the requirement for installation by MCS-accredited installers. This ensures that the individuals or companies responsible for installing the solar panels have undergone specific training, possess the necessary skills, and adhere to industry best practices. By engaging MCS-accredited installers, consumers can be assured of a professional and competent installation process.
Regulatory compliance	The MCS certificate confirms that the installed solar panel system complies with the guidelines and regulations set forth by relevant regulatory bodies and authorities. This includes adherence to safety standards, building codes, and environmental regulations, ensuring that the installation is legally compliant and meets all necessary requirements.
Eligibility for incentives and grants	Many governments and local authorities offer incentives, grants, and subsidies to promote the adoption of renewable energy technologies such as solar power. In numerous jurisdictions, eligibility for these financial incentives is contingent upon the installation of MCS-certified solar panels. Therefore, possessing an MCS certificate can unlock access to various financial benefits and support mechanisms, making solar energy more affordable and attractive for consumers.
Renewable energy payments	In addition to upfront incentives and grants, solar panel owners may also be eligible to receive ongoing payments or credits for the renewable energy generated by their systems. These payments are often facilitated through feed-in tariffs or net metreing arrangements. The MCS certificate ensures that the solar panels qualify for participation in such schemes, allowing owners to monetise the clean energy they produce and potentially offsetting their electricity bills.

The MCS certificate is a crucial credential that validates the quality, safety, and regulatory compliance of solar panel installations. It provides assurance to consumers, facilitates access to financial incentives and support mechanisms, and contributes to the growth and sustainability of the solar energy industry.

Regulations

Planning permissions for installation	Planning permissions are a critical aspect of any construction project, including solar panel installations. In the context of solar panels, planning permissions signify that local authorities have reviewed the proposed installation and found it to be in alignment with zoning laws, building codes, and neighbourhood aesthetics. These permissions prevent haphazard installations that could disrupt the visual harmony of the area or violate land use regulations. They assure potential buyers that the installation has undergone due diligence and adheres to the principles of responsible urban planning.
Positioning of solar panels	The requirement for solar panels to be positioned above the highest part of the roof, excluding the chimney, is driven by architectural and visual considerations. This rule aims to maintain the architectural integrity of the property and surrounding neighbourhood. By situating the panels above the roof's highest point, the installation becomes less visually obtrusive and blends seamlessly with the existing structure. This regulation ultimately contributes to the property's aesthetic appeal and preserves the overall character of the area.
Projection of panels from roof or wall	Limiting the projection of solar panels to 200mm from the roof slope or wall surface ensures that the installation does not create visual clutter or interfere with neighbouring properties. This regulation prevents the solar panels from jutting out excessively and potentially impacting the aesthetics of the property. By maintaining a reasonable projection limit, the installation integrates harmoniously with the building's architecture and minimises any potential visual disruptions.
Contact details for provider	Providing the contact details for the solar panels' provider fosters an environment of transparency and accessibility. Buyers can directly reach out to the provider for inquiries related to maintenance, warranties, or any technical concerns. The availability of reliable contact information assures potential buyers that they can seek assistance or clarification from the professionals who installed the system.
Feed In Tariff Agreement and Change of Ownership form	The Feed-In Tariff (FIT) Agreement is a contractual arrangement that outlines the terms and rates at which surplus energy generated by the solar panels will be purchased by energy suppliers. This agreement ensures that homeowners receive financial compensation for their contribution to renewable energy generation. The Change of Ownership Form, in turn, facilitates the smooth transfer of FIT payments and responsibilities from the seller to the buyer. It is a legal requirement to inform the energy supplier about changes in property ownership to ensure uninterrupted benefits.

Other considerations

Common issues with PV systems	Understanding the common issues experienced with Photovoltaic (PV) systems is crucial for both sellers and potential buyers. These issues could encompass technical glitches, reduced energy production, or connectivity problems. Transparency about these challenges allows buyers to make informed decisions and assess whether the system's past performance aligns with their expectations. Moreover, addressing these issues proactively demonstrates the seller's commitment to transparency and ethical dealings.
Renewable benefits payment and timing	Gathering information about the renewable benefits payment received by the seller under the lease provides insights into the financial benefits associated with solar panels. This payment often refers to the Feed-In Tariff (FIT), where excess energy generated by the panels is sold back to the grid. Understanding the amount and timing of these payments allows potential buyers to evaluate the financial viability of the installation. It is essential to clarify how often payments are received and the potential duration of such benefits.
Insurance coverage for PV system	Insurance coverage for the PV system is essential to mitigate potential risks and financial liabilities. This coverage typically includes protection against equipment damage, system malfunctions, and liabilities arising from accidents related to the installation. Providing a copy of the insurance policy showcases the seller's commitment to ensuring that the system is adequately protected against unforeseen events. Buyers gain peace of mind knowing that the investment is safeguarded by appropriate insurance.
Tax implications and financial considerations	While the questions in the form focus primarily on technical and regulatory aspects, it is worth mentioning that solar panel installations can have implications for taxes and finances. Depending on the jurisdiction, there might be tax incentives, rebates, or grants available for renewable energy installations. Homeowners should research local regulations and consult financial advisors to understand the potential economic benefits or obligations related to their solar panel system.
Flexibility and innovation in solar solutions	While adhering to regulations is paramount, homeowners have room for flexibility and innovation within the established parametres. Solar technology is advancing rapidly, offering options such as solar shingles, bifacial panels, or integrated storage solutions. Embracing innovative solar solutions not only enhances energy efficiency but also showcases a commitment to staying at the forefront of renewable energy technology.
Holistic benefits of solar panel installations	In addition to regulatory compliance, solar panels offer a myriad of advantages, including long-term energy savings, reduced carbon emissions, and increased property value. Highlighting these comprehensive benefits alongside regulatory requirements provides potential buyers with a broader perspective on the value proposition of investing in solar panels.
Customisation based on property characteristics	Each property is unique, and solar panel installations should be tailored to fit specific characteristics. Factors such as geographical location, roof orientation, shading, and energy consumption patterns impact the optimal design and performance of the system. Addressing the form's questions while considering these property-specific factors ensures that potential buyers receive information aligned with the property's solar potential.
Supporting a sustainable energy future	By embracing solar panels and complying with regulations, homeowners actively contribute to a more sustainable energy landscape. Solar energy reduces dependence on non-renewable resources, decreases greenhouse gas emissions, and aligns with global efforts to combat climate change. Sellers who prioritise renewable energy solutions set a positive example for their community and support the transition to a greener future.