Selling a Property with Solar Panels? What You Need To Know Before You Sell

Solar panels can be a real selling point. They may lower energy bills and, depending on when and how they were installed, could also generate payments for electricity produced or sent back to the grid.

They can, however, mean a little more work during the conveyancing process. The buyer and their lender will want to know who owns the panels, whether the installation was properly authorised and whether any agreements or financial commitments remain in place.

If you are selling a property with solar panels, gathering the paperwork early can help avoid delays later.

One of the first things your conveyancer will check is whether you own the panels or a third party does.

If you purchased the panels outright, they will generally form part of the property and should be included in the sale.

Some panels are installed under a lease, licence or "rent-a-roof" arrangement. This usually means that a solar company owns the panels and has rights over part of the roof.

If that applies to your property, your solicitor will need a copy of the agreement. The buyer and their lender will need to check that its terms are acceptable, and the agreement may have to be formally transferred as part of the sale.

These arrangements often lead to extra enquiries, so it is worth identifying them at the outset.

Try to find the following documents before the sale gets under way:

• The MCS certificate, where applicable.
• The original installation agreement or invoice.
• Any solar panel lease, licence or roof agreement.
• Planning permission or other planning documentation, where applicable.
• Building regulations or competent person certification.
• Electrical installation certificates.
• Any relevant Distribution Network Operator (DNO) documentation.
• Feed-in Tariff (FIT) registration and payment information, where applicable.
• Smart Export Guarantee (SEG) information, where applicable.
• Warranties and maintenance records.
• Details of any finance or outstanding balance relating to the installation.
• Documentation relating to any battery storage, inverter or other associated equipment.

Providing these documents at the start can save time and reduce the number of follow-up enquiries.

Whether planning permission was needed depends on the property and the type of installation.

In England, many domestic solar installations fall within permitted development rights, provided the relevant conditions and limits are met. Different or additional restrictions may apply to listed buildings and properties in conservation areas.

In Wales, a separate planning regime applies, and different permitted development provisions need to be considered.

Building regulations may also apply, particularly in relation to the roof structure, the weight of the panels and the electrical work.

Pass any planning permission, lawful development certificate, building regulations completion certificate or competent person certificate to your conveyancer.

Older installations may be registered under the Feed-in Tariff (FIT) scheme. The scheme closed to new applications in 2019, but existing accredited installations may still receive payments under their current terms.

If you receive FIT payments, give your solicitor details of the arrangement so that it can be dealt with when the property changes hands.

Newer installations may qualify for the Smart Export Guarantee (SEG), through which participating electricity suppliers pay for eligible electricity exported to the grid.

You should provide your conveyancer with details of any FIT or SEG arrangement, together with recent statements and relevant account information. 

Tell your conveyancer straight away if the panels were bought using finance.

Any outstanding balance or continuing finance agreement may need to be settled before completion. Your solicitor will also check whether the lender has any security or other interest in the property or the panels.

If the panels are subject to a lease or third-party ownership arrangement, the position should be established at the beginning of the sale rather than left until exchange of contracts.

If the buyer needs a mortgage, their lender may have its own requirements for leased or third-party-owned panels.

If you are selling a property with solar panels, tell your conveyancer from the start.

Gather the installation agreement, certificates, warranties and any FIT, SEG or lease documents as early as you can. If something is missing, let your solicitor know so that they can advise on the next steps.

Solar panels should not stop a sale from going ahead, but missing paperwork can lead to further enquiries and delay exchange or completion.

The sooner the arrangements are clear, the sooner any problems can be dealt with and the transaction can move forward.