Are ‘free’ solar panel offers too good to be true?
Following the introduction of Feed-in Tariffs, many companies are now offering free solar panels if you rent them your roof. It’s one way to avoid stumping up thousands of pounds for solar panels, but is there a catch?
In April last year, the Government introduced the long awaited Feed-in Tariff (FIT) scheme, which offers payments in exchange for generating renewable electricity.
The scheme promises good financial return. For example, for solar photovoltaics (PV), you can earn a 7-10% tax-free return, translating into £25,000 or more over the scheme’s 25-year period.
This is good news for those who can afford to buy a solar PV or a wind turbine. But what about the rest of us who don’t have £14,000 to stump up for a PV system?
Are ‘rent-a-roof’ schemes worth it?
Well, more and more companies have seen the opportunity and are offering ‘free’ solar PV in exchange for renting your roof.
The benefits are that you don’t have to put any money up front and often you’ll get to use the free electricity produced by the system. Plus, you don’t have the hassle of organising installation and the ‘rent-a-roof’ company will often cover maintenance of the system.
But what are the cons? By literally renting your roof for 25 years (the period of the FIT scheme), the company pockets the FIT payments, which means that once the investment in the system has paid itself back, all the profit goes to the company.
Which? research showed that whilst the offer of ‘free’ solar panels might be tempting, you would be financially better off paying for the PV system yourself, even by taking out a loan. Our calculations revealed that you could be up to £10,500 better off over the 25-year period with a loan.
Who pays for FIT?
FIT is paid for by a levy on energy bills. So, in effect, we’re all contributing to it. If you’re able to install renewable electricity on your property and claim FIT, then you’re benefiting from the scheme.
But what if you live in a flat? Or rent? Then you’re contributing to a scheme that you will never be able to benefit from.
Most importantly, while it might still be OK for other householders to benefit from FIT for the ‘common good’ of increasing our renewable capacity and reducing our impact on climate change; is it right that companies pocket the income?
Do you think companies should be allowed to benefit from FIT through ‘rent-a-roof’ schemes? Would you consider the FIT scheme – or would you rather invest the money yourself and buy a PV system upfront?
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Tracey Inch
Ecovision offered the Free solar panels for 25 yrs. I applied before Xmas and had 2 Surveyors out to the house that confirmed my house was suitable. Eventually in March I was told that the panels were to be installed and set a date. The solar panels turned up but no scaffolding or fitters so when I rang ecovision they told me the whole thing had been cancelled as the amount of solar panels had been increased from 10 to 14 & they couldnt get that many on my roof plus the cost of scaffolding was too much! I have complained but to no avail and I seem to have hit a wall. Any advice as to whether I have any rights to get these solar panels installed as promised would be greatly recieved. After all they must have spent a small fortune just to get to the installation stage after sending out 2 surveyors, registering the lease of the roof with land registry, getting permission from my mortgage company and sending solar panels from London.Help!!
Em
You have no rights to force another party to proceed against their will, but you could claim for breach of contract. You would have to demonstrate a financial loss. And not just theoretical – you would have to show you were actually going to use the electricity and how much it will cost you to replace it. The other problem is that they could argue there is nothing to stop you renting your roof to another supplier, so there is in fact no loss to you other than in the very near term. I wouldn’t bother.
Derrick J
Hi, I have answered the Ecovision ad and they have told me that my house is suitable, the next step is the paperwork and the Surveyor’s visit. Is your situation sorted out yet? or, is it advisable for me to politely decline?
Tracey Inch
Out of the blue I had a phonecall from yet another surveyor saying that they needed to do an economical survey which is now required by the government apparently. They said they had been told by Ecovision to do this so after asking them to check again they came out and did another survey. They have now given me another installation date although I have to say I will believe it when I see it so keep posted.
Cleotilde Barberian
The proposal from Govt subsidized feed in tariff schemes for cost-free solar energy panels is legit – however but there strings attached and consequences – it has to be remembered that ‘the only free cheese is in a mousetrap’