Installing panels on a block of flats (i.e. we don't own the freehold)

[zcacogp]

Chaps,

This is my second thread on here (first one here: http://www.electriciansforums.net/p...nergy-forum/37973-panels-inverter-choose.html ), and again it is to do with fitting a solar PV system.

I am interested in having a system fitted to a flat I own. I think it would make a good site for an install, but the details aren't relevant; what is relevant is that I don't own the freehold of the property - I only own a lease for the flat. I have spoken with the installer I would choose to use (who has done an install for me already), and he has confirmed what I thought; that I will need to find the freeholder of the property and get their permission to have an array fitted - permission in the form of a contract between me and the freeholder. The aim of the install would be the same as if it was on a regular (freehold) house; I would be wanting both the FIT and the electricity produced.

This sounds sensible, and the idea of a contract is appealing as it makes things unambiguous for both parties. However I clearly need to have such a contract drawn up. Speaking to a solicitor would be one way of doing this, but I can't help thinking that I'm not the first person to have had this problem and that there must be standard contracts available for such things.

So, the question is, do you know of (or - even better - have a copy of) a standard contract for agreement to install solar panels on a property, between the freeholder of the property and a third party? I know that there are companies around who rent rooves from other people and hence will have contracts that cover this sort of thing (and a lot of other things as well.)

All help welcomed - thanks.


Oli.

 

[TonyL]

Chaps,

This is my second thread on here (first one here: http://www.electriciansforums.net/p...nergy-forum/37973-panels-inverter-choose.html ), and again it is to do with fitting a solar PV system.

I am interested in having a system fitted to a flat I own. I think it would make a good site for an install, but the details aren't relevant; what is relevant is that I don't own the freehold of the property - I only own a lease for the flat. I have spoken with the installer I would choose to use (who has done an install for me already), and he has confirmed what I thought; that I will need to find the freeholder of the property and get their permission to have an array fitted - permission in the form of a contract between me and the freeholder. The aim of the install would be the same as if it was on a regular (freehold) house; I would be wanting both the FIT and the electricity produced.

This sounds sensible, and the idea of a contract is appealing as it makes things unambiguous for both parties. However I clearly need to have such a contract drawn up. Speaking to a solicitor would be one way of doing this, but I can't help thinking that I'm not the first person to have had this problem and that there must be standard contracts available for such things.

So, the question is, do you know of (or - even better - have a copy of) a standard contract for agreement to install solar panels on a property, between the freeholder of the property and a third party? I know that there are companies around who rent rooves from other people and hence will have contracts that cover this sort of thing (and a lot of other things as well.)

All help welcomed - thanks.


Oli.

Thanks for raising this. I am in the same position. I own the top floor flat and want to use the lovely big south facing roof directly above it for a 4kwp system. My thoughts have been;

* Take a 25 year lease on the roof at a peprcorn rent.

* There shouldn't be any uplift in block insurance but if there is, pay it

* Use the flat CU for the grid connection

* Get permission to install the inverter in the communal hall in a locked cupboard (there is plenty of space) thus providing some heating to the hall way

My block has a maintenance levy due next year and at worst, I will knock 10% of that for everyone.

An alternative I dont want to do is use the communal area meter for the export and so pay that bill for everyone

My outstanding questions are around the tax elligibility for the FIT payment.

 

[zcacogp]

Tony,

I doubted I would be the first one to think of it ...

Good ideas of yours. The idea of renting the roof is a good one - I had only thought of getting permission. Perhaps that peppercorn rent could be set at the increase in any communal insurance?

What's the CU? I guess Consumer Unit. And yes, you'd need to do that for the grid connection so you get the electricity that is generated.

If you own the top floor flat, couldn't you put the inverter in the loft which is directly above your flat?

I'd be a little careful about offering to pay too much for the various maintenance levies and whatnot; while solar PV goes generate money, it doesn't generate that much. If you get £1000 from an array per year, this will be eaten up quite quickly if you spend a couple of hundred on the increase in block insurance and a chunk of the maintenance levy, and you could end up not making any return on your investment.

As far as I am aware, the FIT payment is tax-free. I don't see why this should change just because the install is on the roof of a building for which you don't own the freehold.


Oli.

 

[TonyL]

Tony,

I doubted I would be the first one to think of it ...

Good ideas of yours. The idea of renting the roof is a good one - I had only thought of getting permission. Perhaps that peppercorn rent could be set at the increase in any communal insurance?

What's the CU? I guess Consumer Unit. And yes, you'd need to do that for the grid connection so you get the electricity that is generated.

If you own the top floor flat, couldn't you put the inverter in the loft which is directly above your flat?

I'd be a little careful about offering to pay too much for the various maintenance levies and whatnot; while solar PV goes generate money, it doesn't generate that much. If you get £1000 from an array per year, this will be eaten up quite quickly if you spend a couple of hundred on the increase in block insurance and a chunk of the maintenance levy, and you could end up not making any return on your investment.

As far as I am aware, the FIT payment is tax-free. I don't see why this should change just because the install is on the roof of a building for which you don't own the freehold.


Oli.

Oli

I agree about paying too much money out. I should have said in my reply that this would be my second system and I am working it out based on experience of those payments. I have a 4kwp system on my house that is 144 days old and doing very nicely at £1,050 FIT.

I forgot to say that the idea behind leasing the roof is that a lease is a very standard legal document off the shelf. OK, there must be some mods but it is familiar ground and the freeholder can see an end to it.

I am concerned about the FIT side of it because the Govt is has hinted that it wants to shaft big 'for profit' instalations and they have a review going on I believe. I always think ill of HMG andd maybe they will shaft smaller installs that aren't on your own house as well.

I don't want the inverter, switches and electrics inside the flat and the wall where the cnsumer unit is mounted backs onto the hallway. I want to be able to get at them (meter reads if nothing else) without having to get permission to enter the flat. The hallway is also cooler and I hate cooking/freezing cycles on any equipment.

 

[zcacogp]

Tony,

Your situation sounds identical to ours, and that's a rental property you are talking about (or I'm a dutchman!) I like your way of thinking.

The idea of a lease is appealing for precisely that reason; simple, known quantity, and the freeholder should be able to understand what is being asked for pretty easily. The next problem is identifying the freeholder; in my case it is a property I have hardly ever visited and I can't remember who the freeholder is. That, in itself, could be a bit of a challenge!

The tax point is a good one; I hadn't heard that the government was looking into it. It doesn't surprise me; governments have a long history of making policy or legislation, not appreciating the effects of it until they come to pass, and then passing knee-jerk subsequent legislations to counter the unforeseen consequences. But it could make things sticky for the likes of you and me. In our favour, we wouldn't be full-on commercial enterprises as we would own the rights to the property the array is connected to, which would put us in a different category to the big boys who are purely doing it for the investment. But whether that makes any difference to the tax situation would be anyone's guess. Do you have any idea when the review is going to complete and produce some an output? (Is it likely to be before or after the 1st April next year - the date when the current FIT arrangement is likely to change?)

And, back to the original question, does anyone have a suitable contract for this sort of thing - be it a lease or otherwise?


Oli.

 

[SolarCity]

I've not got a lot to add to this apart from pointing out my concern about an inverter being located in a cupboard. You want to make sure that an inverter has plenty of ventilation to aid it's cooling. As the inverter gets warmer, it's efficiency drops off.

 

[TonyL]

Thank you. You are absolutely right about venting. Even in the garage, mine kicks out a fair amount of heat. I was planning on leaving bottom with holes in it and venting the top somehow.

Oli

I have just had a thought about isolation. We need to make sure the tenant can (and knows to) isolate the PV. So a really clear notice and separate RCD needs to be put in place for them to use and a formal letter sent notifying them of the change. In my case, the metter is three floors down so it needs a notice there as well.

I don't have a contract but I anticipate a solicitor would have one off the shelf - i.e. the kind used for advertising hoardings on the side of buildings. Yes, it's a rental property. I will post back when I work out what the reviews are doing.