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‘Free’ Solar Panel Scheme Explained

Most homeowners purchase a solar panel scheme either by using their own resources or by borrowing the funds by way of a further advance on their mortgage or some other from of loan. Such homeowners are helping the UK achieve its renewable energy and carbon emission targets as well as benefiting financially by reducing their electricity bills and also possibly receiving monies under the feed in tariff scheme.

Rent a roof solar panel schemes may be an option for some people

Another option for the homeowner is to contact a company that provides a “free” solar panel scheme. This sort of scheme is also known as a ‘rent a roof “ scheme.

So, how does the later form of scheme differ from the former?

Well, a “rent a roof” scheme provides the homeowner with the use of solar panels but with no capital outlay to purchase them. The companies offering this sort of scheme will install the solar panels for a period of 20 to 25 years by leasing your roof. They will be responsible for maintaining the solar panels during the period of the lease. You, the homeowner, will also receive free electricity that is generated by the solar panels. The company will receive the feed in tariff payments and they can be quite significant.

Something that you should be aware of with a “rent a roof” scheme is that, should you wish to sell your home during the period that your roof is leased out, the new purchaser would have to agree to take on the lease. You should also be aware that some mortgage lenders would not lend on a property with “rent a roof” solar panels on the roof. Also, should you wish to make any alterations to the property that are close to the solar panels the company that you have entered into the lease with would have to consent.

In conclusion, you will need to carry out some financial calculations to assess the viability or otherwise of a “rent a roof” scheme in comparison to a conventional “buy your own” scheme.

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