You can sell a house with solar panels, and if you own them outright they rarely cause problems; the difficulty comes when a solar company owns the panels under a long lease of your roof space, because the buyer’s mortgage lender then has to accept that lease. If it won’t, the buyer may need a different lender, the lease may need changing, or your realistic buyers may be limited to people who don’t need a mortgage.
Do you own your panels or lease your roof?
This is the first thing to establish, because it decides how simple your sale will be.
Owned panels were paid for by you or a previous owner. They are part of the house, and the buyer takes over the benefit of the electricity they generate and any feed-in tariff or export payments. That can be a selling point, provided the paperwork is in order.
Leased panels usually came from a “free solar” or “rent-a-roof” scheme. UK Finance explains that after feed-in tariffs went live on 1 April 2010, providers began offering free installation. The provider keeps ownership of the panels and receives the feed-in tariff payments, the homeowner gets free electricity, and the provider protects its interest with a lease of the airspace above the roof. The Law Society’s TA6 form notes that a typical long lease of this kind may last 20 to 25 years.
If you are not sure which you have, look for a lease or agreement with a solar company, check who receives any feed-in tariff payments, and check your title register at HM Land Registry. Ofgem also explains how to raise an ownership query about panels on a property.
Why do leased panels worry buyers’ lenders?
A lease gives a third party rights over part of the house for decades, so lenders want to be sure it can’t damage their security.
UK Finance and the Building Societies Association (BSA) publish joint guidance on these leases. It says that where someone buys a property with an existing solar lease, the lender is likely to review the lease against the published minimum requirements and its own specific requirements. If the lender feels the lease does not meet them, it may ask for the lease to be varied, or may choose not to lend on the property.
The same guidance points out that most lenders’ mortgage conditions required the homeowner to get the lender’s consent before granting the lease. If the panels went up without your lender’s consent, tell your solicitor, as it may affect how the sale is handled.
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What do lenders look for in a solar lease?
UK Finance and the BSA publish a template letter setting out lenders’ minimum requirements, for providers to use when asking a lender to consent to a lease. The current version, dated July 2024, includes these points:
- the lease term does not exceed 30 years
- the provider is liable to repair, at its own expense, any damage it causes when installing, maintaining or removing the panels
- any maintenance fee is £60 a year or less at the start, rising by no more than the Retail Price Index, or there is no fee
- the panels can be removed and reinstated for essential roof repairs and improvements, with reasonable grace periods
- the provider insures the equipment for the term of the lease, including liability for damage to the property
- a lender that takes possession of the house can end the lease on at least two months’ notice if the panels are affecting its ability to sell, and the provider must then remove them at its own expense
- in England and Wales, the lease validly excludes security of tenure under the Landlord and Tenant Act 1954
These are minimums. The guidance says individual lenders may have different or additional requirements, and that it covers properties in England and Wales. If you live in Scotland or Northern Ireland, ask your solicitor how local lenders treat these leases.
What does the TA6 form ask about solar panels?
In England and Wales, your solicitor will ask you to complete the Law Society’s Property Information Form (TA6). In the current 6th edition, question 5.6 covers solar power systems. It asks:
- whether a system has been installed and the year it went in
- whether you own the system outright
- whether a long lease of the roof or air space has been granted to a solar provider, with a copy of the lease
- whether there is a maintenance agreement or a battery
- whether the system feeds into the National Grid and, if so, whether there is a feed-in tariff (FIT) or Smart Export Guarantee (SEG) agreement, with a copy, a bill showing the credit paid, and details of how the benefit will pass to the buyer
- for a copy of the building regulations completion certificate or a compliance certificate, such as an MCS certificate
The form tells sellers that buyers can rely on their answers, and that if you give misleading information the buyer may be able to claim compensation after completion. Gathering these papers early avoids delays. Our guide to documents you need to sell covers the rest of the paperwork.
Can you buy out or change a solar lease?
If a buyer’s lender won’t accept your lease, there are two routes worth exploring with the provider:
- Varying the lease so that it meets lenders’ minimum requirements. The UK Finance guidance expressly contemplates a lender asking for this.
- Ending the lease early, for example by agreeing to buy the panels from the provider or to have them removed.
Whether a provider will agree, and on what terms, depends on the provider and on what your lease says. Read the lease carefully, and ask your solicitor to review any proposal before you sign or pay anything. Any change will take time, so raise it as early in the sale as you can.
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What happens to feed-in tariff and SEG payments?
The feed-in tariff closed to new applicants on 1 April 2019. Ofgem says existing installations receive support for between 10 and 25 years, depending on the technology, its size and when it was commissioned.
If you own the panels, the FIT benefit can pass to your buyer. For most home systems, Ofgem says the new owner should contact the FIT licensee the installation is registered with, which will update the Central FIT Register. If the panels are leased, the provider receives the FIT payments, so there is nothing for you to transfer.
The Smart Export Guarantee launched on 1 January 2020 and pays for electricity exported to the grid. Payments come from a SEG licensee the generator chooses, which Ofgem says need not be their energy supplier, and the supplier sets the rate and contract length. The SEG applies in Great Britain.
How do cash buyers approach leased solar panels?
A buyer who doesn’t need a mortgage doesn’t need a lender to approve the lease, so a lease that falls short of lender requirements need not stop the sale. Cash buyers will still read the lease. They will weigh up the years remaining, the provider’s rights over the roof, and how easily they could sell the house on.
Offers for a house with a problem lease usually reflect it, and a quick sale generally means accepting less than full market value. If the lease can be varied or bought out at a sensible cost, an open-market sale may achieve more, and our comparison of cash buyers, estate agents and auctions sets out the options.
If a solar lease is holding up your sale, some of the vetted cash buyers on our panel buy homes with problems like this. You can get offers for my home, sharing a copy of your lease so buyers can take it into account. It is free and there is no obligation to accept any offer. Our guide to how much cash buyers pay explains how they work out their figures.
Common questions
Do I have to tell buyers my solar panels are leased?
Yes. In England and Wales, question 5.6 of the Law Society's TA6 property information form asks whether you own the system outright and whether a long lease of the roof or air space has been granted to a solar provider, and asks for a copy of the lease. Buyers can rely on your answers, and misleading information may lead to a claim for compensation after completion.
Can a buyer get a mortgage on a house with leased solar panels?
Often, but not always. UK Finance and the Building Societies Association say a lender will review an existing lease against their published minimum requirements and its own criteria. If the lease falls short, the lender may ask for it to be varied or may decide not to lend on the property.
Does the feed-in tariff transfer to the new owner?
If you own the panels and they are registered for the feed-in tariff, the payments can pass to the buyer. Ofgem says the new owner of a typical home installation should contact the FIT licensee it is registered with, which updates the Central FIT Register. With leased panels, the provider receives the FIT payments, not you.
What if I don't know whether my panels are leased?
Check your paperwork, who receives any feed-in tariff payments, and your title register at HM Land Registry, as UK Finance's guidance refers to providers registering their leases. Ofgem also explains how to raise an ownership query about panels on a property.
Related guides
- Selling a house with title problems Unregistered land, lost deeds, covenants, missing consents and boundary disputes.
- Documents you need to sell a house A checklist of the paperwork for a sale, and where to find it.
- How much do cash house buyers pay? Why offers are below market value, and how to judge one.
- House not selling? What to do next Pricing, presentation, changing agent, auction and cash buyers.