Solar panels are often sold with a house, but the income they earn under the Feed-in Tariff (FIT) does not move automatically. Whoever owns the property when a sale completes has to be recorded with the FIT licensee, and the seller needs a final meter reading. This article summarises Ofgem’s guidance for FIT generators and a change-of-ownership guide published by the energy company Good Energy, which acts as a FIT licensee. The FIT scheme operates in Great Britain only. Ofgem says it closed to new applicants from 1 April 2019, so it applies to installations already registered. This is general information; the licensee’s own instructions and the conveyancing solicitor’s advice take priority.
Who has to act
Two people have tasks. The seller has to tell the FIT licensee that ownership is changing so that payments can be closed off and a final payment made. The buyer, as the new owner, has to be recorded so payments continue to the right person. Ofgem describes the buyer’s job for smaller installations, called MCS-FIT (solar or wind of up to 50kW and micro-CHP up to 2kW): contact the registered FIT licensee, which will update the generator’s details on the Central FIT Register. For larger installations, called ROO-FIT (solar or wind above 50kW, plus all anaerobic digestion and hydro), Ofgem says the new owner first emails Ofgem to update the Renewable Electricity Register and completes a transfer request form, and then notifies the FIT licensee. A typical home rooftop system is likely to be in the first category.
What a seller should do
Good Energy’s guide says that when selling a home with solar panels included, the seller should tell the licensee immediately and take a reading from the generation meter on the day the sale completes. The company asks for written confirmation of the completion date, the new owner’s name and property address, and proof that the installation was included in the sale. Once those are received, the seller gets a final payment. Good Energy also advises providing a forwarding address for later correspondence and not sharing account details with the new owner, which could lead to overpayments.
These steps are one licensee’s process, but they show the kind of evidence a licensee is likely to need. A seller should check the equivalent instructions from their own licensee.
What a buyer should do
According to Good Energy, a buyer completes a digital change-of-ownership form with the current generation meter reading, photo identification such as a passport or driving licence, and evidence of the purchase, for example a solicitor’s letter, the purchase agreement or Land Registry documents with the Law Society form TA10. Ofgem adds that a new owner must agree to a new statement of FIT terms with the licensee and provide current meter readings before payments start. It says the transfer typically takes around four to five weeks, so a gap between completion and the first payment to the new owner should be expected.
Special situations
- Rent-a-roof arrangements: Ofgem says that where a third party owns the installation, the installation owner and not the homeowner receives the FIT payments. A buyer of a home with panels on a rent-a-roof deal should establish who owns the equipment and what the arrangement requires before exchange.
- If the licensee stops operating: Ofgem says FIT payments can only be made by an active licensee, so an owner in this position should contact a new FIT licensee immediately; a Continuity of FIT Payments Direction may recover missed payments.
- Bereavement: Good Energy describes a separate digital form for transfers after the death of an owner, requiring photo identification, the will or probate document and a copy of the death certificate.
- Taking the panels with you: the Good Energy guide does not address relocating panels to another property, and the Ofgem page read does not either, so a seller who plans to remove them should raise this with the licensee and the buyer’s solicitor before the contract is signed.
Timing within the move
Because a completion date can slip, meter readings and paperwork should be kept ready. The site’s article on what happens if completion is delayed shows how a shifted date affects other arrangements, and the guide to gas and electricity meter readings on a move covers the ordinary supply account.
Common questions
Do the payments go with the house?
Ofgem’s guidance treats the new property owner as the person to be registered with the licensee. The transfer is not automatic; the buyer has to notify the licensee and agree new terms.
Does this apply in Northern Ireland?
No. Ofgem says the scheme operates in Great Britain only.
Can a new customer join the FIT now?
Ofgem says it closed to new applicants from 1 April 2019, so it concerns existing registered installations.
The bottom line
When a home with FIT-registered solar panels is sold, the seller needs to notify the licensee and supply a generation meter reading at completion, and the buyer needs to have ownership recorded and agree new terms, a process Ofgem says takes about four to five weeks. Larger and rent-a-roof installations follow different steps, and moving panels to a new property is not covered by the guidance read, so it should be raised early.