The latest 'Business Brief' column from QualitySolicitors Redkite
Welcome to the business column from the QualitySolicitors Redkite, the biggest legal firm in West Wales. This week, property solicitor Lucy Morris puts the spotlight on solar panels.
Solar panels are becoming increasingly popular in West Wales, providing environmental and financial benefits.
But homeowners should not rush to install.
If you are thinking about it, there are two basic packages available -either a purchase or a lease.
Both options require careful consideration.
You could pay for the installation and claim the income (called a “feed in tariff”) yourself.
A number of solar panel installation firms are approaching homeowners, with attractive the promise of no up-front costs and, more importantly, cheaper or free electricity.
This will usually involve you giving the company a 25-year business lease of the air space above your house. The company will install the panels and then claim the feed in tariff. A lease is needed to regulate the ongoing relationship between you and the solar panel firm. The lease will be an extremely important document as it will regulate issues such as maintenance of the solar panels, maintenance of the roof, insurance, rights of access and what happens if someone is injured on the roof or if damage is caused to the property.
The lease should also regulate who will be responsible if the installation or presence of solar panels create structural problems to the property.
Remember, if you have a mortgage, the lender’s consent will be necessary before you can install the panels.
Most lenders support green energy initiatives but want to ensure that the lease does not adversely affect the value or saleability of the property. Local authority consents may also be required.
Some solar panel installation firms offer a good service to consumers, a great deal on the electricity generated and are prepared to negotiate the terms of the lease.
However, other firms ask homeowners to sign non-negotiable leases without allowing homeowners to obtain legal advice, giving the homeowner only seven days in which cancel the lease.
It is essential for homeowners considering solar panel leases to obtain independent legal advice as soon as possible.
Homeowners should be deterred from solar panel leases, but should proceed with caution after taking detailed advice.
- On April 1, Red Kite Law joined ‘QualitySolicitors’ to become ‘QualitySolicitors Redkite’. QualitySolicitors is a national network of independent law firms with a common purpose: to provide a great service and to use the combined resources of the network to invest in new and innovative ways to deliver legal services.
- Lucy Morris is a solicitor specialising in all aspects of commercial property transactions including leases, sales and purchases of business premises, agricultural matters, mortgages and guarantees. She has experience in commercial and business affairs and in employment law. She acts on behalf of a wide variety of clients including sole traders, partnerships, limited liability partnerships and limited companies. She joined the firm as a trainee solicitor in 2006 after studying at Cardiff University and Swansea University. She qualified as a solicitor in September 2008. She is from Carmarthenshire and speaks Welsh.
Phone: 01267 239 000
http://www.qualitysolicitors.com/redkite
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