Buying a House with Solar Panels

Buying a house with solar panels can help you generate electricity and potentially reduce your energy bills. However, before you buy, it is important to understand who owns the panels, whether a roof-space lease or other agreement applies, and what paperwork is available.

Solar panels do not automatically make a property difficult to buy or mortgage. The key is to establish the ownership arrangements, check any relevant agreements and confirm that your mortgage lender is satisfied with them.

This guide explains the benefits and potential costs of buying a house with solar panels, the conveyancing checks to make and how to identify issues before exchanging contracts.

Need more help? Read our guides on solar panel feed-in tariffs and living near a solar farm.

What to know before buying a house with solar panels

When buying a property with solar panels, it is important to understand not only how the system works but also who owns it and whether any agreements affect the property. There are two common ownership agreements:

• Panels owned outright: The seller owns the panels, and they are included in the property sale.
• Third-party ownership or a roof-space lease: A solar panel company may own the equipment, with an agreement granting it rights over the roof space or setting out other obligations.

Other finance arrangements or contractual obligations may also apply. Your conveyancer should establish which arrangement is in place and explain how it could affect the purchase.

What are the benefits of buying a property with solar panels?

An existing solar panel system may allow you to generate electricity for use in your home. It can come with several benefits, particularly if the system is in good condition and the ownership arrangements are straightforward. Depending on the system and how you use electricity, you may benefit from:

• Lower electricity bills: Generating electricity for use in your home may reduce how much you need to buy from your energy supplier.
• Payments for exported electricity: You may be able to earn money by exporting eligible surplus electricity through a Smart Export Guarantee (SEG) tariff or benefit from an existing eligible Feed-in Tariff (FIT) contract.
• An existing installation: You can move into a property with solar panels already installed, avoiding the need to arrange a new installation yourself.
• Greater control over energy use: If the system includes battery storage, you may be able to store some generated electricity for use when the panels are not producing enough power.
• Potential environmental benefits: Generating electricity from solar energy can reduce reliance on electricity from the grid, although the overall benefit depends on the system and the energy it displaces.

The exact benefits will depend on the system's output, its condition, your household's electricity use and any applicable export payment arrangements. Check the ownership and contractual terms before assuming the panels will deliver savings or income.

Solar panel ownership: owned outright or leased?

Establishing who owns the solar panels is one of the most important early checks when buying a property. The arrangement determines what paperwork you need and whether any obligations will continue after completion.

Do not assume that solar panels belong to the seller simply because they are installed on the property. Ask the seller to provide the relevant documents to establish ownership and any ongoing agreements.

What if the solar panels are owned outright?

If the seller owns the panels outright, there may be fewer contractual complications than with a third-party roof-space lease. However, confirm that the equipment is included in the sale and ask for the available installation records, certificates, warranties and maintenance history.

You should also establish whether the system includes battery storage and whether any export payment arrangements apply. If documents are missing, your conveyancer can raise enquiries with the seller. Missing paperwork does not automatically mean the installation is defective, but further investigation may be needed.

Solar panels and mortgages: what buyers need to know

You may be able to get a mortgage on a property with solar panels, but your lender will need to be satisfied with any legal arrangements affecting the property. This is particularly important if a solar panel company owns the equipment and has a lease over the roof space, as the lender will need to consider the effect of that agreement on its security over the property.

For properties in England and Wales, UK Finance's Mortgage Lenders' Handbook sets out requirements for leases of roof space for solar photovoltaic (PV) panels in section 5.20. These requirements help protect the lender's security over the property if it needs to repossess and sell the home.

Your conveyancer should check the lease against the relevant UK Finance minimum requirements and your individual lender's instructions. The lender may also have additional requirements, so a lease accepted by one lender will not necessarily be acceptable to another.

What will the mortgage lender want to check?

The lender's requirements can cover matters such as:

• The lender's security: Whether the lease meets the applicable requirements and protects the lender's position if it takes possession of the property.
• Access and repairs: Whether the relevant parties can access the roof and arrange necessary repairs or maintenance.
• Removal of the panels: What happens if the panels need to be removed, including when roof repairs are required, or the lender takes possession.
• The terms of the lease: Whether the agreement meets the lender's minimum requirements and any additional conditions imposed by that lender.

What if the solar panel lease does not meet the lender's requirements?

If the lender is not satisfied with the lease or if it does not meet the applicable requirements, further work may be required before the purchase can proceed. Depending on the circumstances, this could involve obtaining additional information, agreeing a variation to the lease or considering another solution acceptable to the relevant parties.

Do not assume that a lease accepted by the seller's previous mortgage lender will automatically be accepted by your lender. It is important to raise the issue early. If the arrangement cannot be resolved to the lender's satisfaction, it could delay the transaction or affect whether the mortgage can proceed.

Conveyancing checks when buying a house with solar panels

Your conveyancer can investigate the legal arrangements affecting the solar panels and raise enquiries where information is missing or unclear.

The precise checks will depend on the property and the system, but may include the following.

Ownership and sale documents

Establish whether the panels are owned by the seller or a third party, and confirm that the relevant equipment is included in the sale.

Check the seller's replies and the fixtures and fittings information, alongside any contracts or agreements relating to the panels.

Roof leases and other agreements

If there is a lease or other agreement, your conveyancer should review its terms and explain the relevant obligations.

This may include the lease duration, access rights, maintenance and insurance responsibilities, and the arrangements for roof repairs or panel removal.

Installation records and certificates

Ask for the available installation documentation, including relevant certificates, guarantees and warranties.

The documentation may help establish how and when the system was installed and whether relevant requirements were addressed. The specific documents needed will depend on the installation and circumstances.

Where information is missing, further enquiries may be appropriate. The absence of a particular certificate should be investigated rather than automatically treated as proof that the installation is unlawful or unsafe.

Warranties, maintenance and condition

Ask when the panels and associated equipment were installed, which warranties remain in force and whether repairs have been carried out. Inverters and other components may need to be replaced before the panels reach the end of their useful life.

Your conveyancer can review the available legal documentation, but a conveyancer's review is not a substitute for a technical inspection. If you have concerns about the condition or safety of the system, consider seeking advice from a suitably qualified solar panel specialist.

Energy tariffs and export payments

Ask whether an existing Feed-in Tariff (FIT) agreement or a Smart Export Guarantee (SEG) tariff applies. The FIT scheme closed to new applicants in March 2019, but existing eligible contracts may continue. SEG payments depend on the applicable supplier and contract terms.

Do not assume that payments will transfer automatically when you buy the property. If an existing FIT contract applies, check the change-of-ownership process with the relevant scheme administrator and establish what information or forms are required. If you want to receive payments for exported electricity under a Smart Export Guarantee (SEG) tariff, check the eligibility requirements and arrange an appropriate contract with a participating electricity supplier.

Can you remove solar panels from a house?

Solar panels can sometimes be removed, but your rights and responsibilities will depend on who owns the system and the terms of any agreement affecting the property.

If the seller owns the panels outright, removal may be possible subject to the relevant technical requirements. If a third-party company owns the equipment or has a roof-space lease, you may need its consent. If the roof requires significant repairs, check who must arrange and pay for the removal and reinstallation of the panels, and whether the agreement imposes any conditions or time limits.

Leasehold solar panels and shared roof arrangements

Buying a leasehold property with solar panels requires particular care because the ownership of the flat, the roof and the solar equipment may involve different parties.

For example, a freeholder may have granted a solar panel company rights over the roof, or a building may have an arrangement covering shared areas. The position will depend on the leasehold structure and the relevant agreements.

Before proceeding, establish:

• Who owns the roof and the solar panel equipment
• Whether the freeholder, landlord or management company has granted any relevant permissions or agreements
• Whether the solar panel arrangement affects your lease or the building's management responsibilities
• Who is responsible for maintenance, repairs, access and any costs associated with the system

Do not assume that owning or occupying a leasehold flat gives you the right to install, alter or remove solar panels. Your conveyancer should check the lease and any relevant permissions.

Solar panel maintenance and costs

Solar panels can last 25 years or more, although their performance may gradually decline over time. The lifespan of the wider system also depends on the condition of its components and how well it has been maintained.

The inverter, which converts the electricity generated by the panels into a form suitable for use in your home, may need replacing sooner. The Energy Saving Trust advises that an inverter may need to be replaced after around 12 years.

Before buying, ask for the installation date, available warranties and maintenance records. This can help you understand the system's age, what protection remains and whether any components may need attention.

Warranties, installation records and home insurance

Ask the seller for the panel and inverter warranties, installation documentation and any maintenance or repair records. Check what the warranties cover, how long they remain in force and whether they can be transferred to you. The installation date and records can also help you understand the system's age and whether any components may need attention.

You should also check whether your home insurance covers the solar panels, inverter and any associated equipment. Do not assume that the seller's existing cover will continue on the same terms after the sale. Confirm the position with your insurer and check whether any additional information or changes to the policy are needed.

How much maintenance do solar panels need?

They generally require relatively little maintenance. Rainfall often helps keep them clean, though occasional cleaning may be needed if dirt or debris accumulates. Check the system's performance and seek professional advice if you notice a drop in output, visible damage or a fault. Battery storage, inverters and other equipment may have their own maintenance requirements.

If the system is older or you have concerns about its condition, consider arranging an inspection by a suitably qualified solar panel specialist before completing the purchase.

What costs should buyers consider?

The costs you may face depend on the age, condition and ownership arrangement of the system. Potential expenses include:

• Inverter or component replacement: Parts may need replacing before the panels reach the end of their useful life. This can cost around £800, depending on the inverter and system.
• Cleaning and maintenance: Routine costs are often limited, but specialist cleaning, inspections or repairs may be needed. A specialist inspection may be useful if the system is old, its performance is uncertain, or there are concerns about its condition.
• Roof repairs: Panels may need to be removed and reinstalled if significant roof work is required. Check the relevant agreement to establish who is responsible for the work and its cost.
• Removal of the panels: If you want the system removed, the cost and your right to arrange removal will depend on ownership, contractual terms and the work involved.
• Lease-related obligations: A third-party arrangement may impose responsibilities or conditions that you should understand before buying.

Ask the seller for available records and check the terms of any solar panel agreement. Your conveyancer can investigate the legal obligations, while a specialist can advise on the system's physical condition and likely maintenance needs.

How can solar panels affect your conveyancing timescale?

Solar panel checks form part of the wider conveyancing process. If the seller owns the panels outright and provides the relevant documents promptly, the checks may be completed within a few days to a couple of weeks.

A roof-space lease, missing paperwork or an agreement that needs changing can require further enquiries and lender approval, potentially taking several weeks or longer to resolve. The impact will depend on the circumstances, and these checks can run alongside other conveyancing work. Ask your conveyancer whether any solar panel enquiries remain outstanding if you are concerned about delays.

Buying a house with solar panels? Get conveyancing advice

Solar panel arrangements can affect your mortgage, the paperwork required for your purchase and your responsibilities after completion. It is important to understand the legal position before exchanging contracts.

SAM Conveyancing can help investigate the legal arrangements affecting your purchase, raise relevant enquiries and explain any issues that need to be resolved.

Request a conveyancing quote from SAM Conveyancing and make sure you understand the legal position before you exchange contracts.