Could Solar Panels Work for You?

Following on from last week's tips for greener homes, today we're taking a closer look at installing solar panels on blocks of flats. At first glance, there are plenty of advantages—cheaper electricity, the ability to sell excess energy back to the grid, and environmental benefits. In some cases, government subsidies may even be available to help with installation costs. But as we pointed out in our earlier blog, the process may not be as straightforward as it seems.

Key Considerations Before Installation

If you're managing a block that is interested in solar panels, there are several key factors to consider. The roof’s suitability is crucial—does it face the right direction, and is it large enough? Planning permission will also be required before proceeding.

Legal and Leasehold Issues

As with most aspects of block management, the starting point is the lease. Who is legally responsible for the roof? Who pays for installation? Property lawyers suggest that solar panels are considered "improvements" rather than "repairs," which means they may not be covered by servicechargesorted.co.uk/blogs/service-charge-disputes-what-cam-be-disputed-how-and-the-role-of-the-first-role-planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal'>service charges. Unless the lease explicitly states otherwise, the cost cannot be charged to the servicechargesorted.co.uk/blogs/service-charge-disputes-what-cam-be-disputed-how-and-the-role-of-the-first-role-planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal'>service charge fund, meaning flat owners would need to volunteer to pay their share. If not everyone agrees, the block may have to structure the cost as a loan.

Ongoing Maintenance and Infrastructure

Once installed, who will maintain the panels, and who will pay for it? Lease agreements may not always allow for running cables through the block to support solar panels. These are crucial questions that need to be addressed before moving forward.

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What Happens to the Surplus Energy Profits?

If your block generates surplus electricity, what happens to the revenue? Many might assume the funds can simply be added to the reserve fund, but that’s not always the case. Some leases may not permit reserve funds, while others may restrict how funds can be used. Instead, any profits from solar energy may need to be held as company funds on behalf of the block.

Getting Legal Advice Before Installation

While the potential benefits of solar panels make them worth considering, the legal and financial challenges cannot be ignored. Before selecting a supplier, remember that solar companies are unlikely to understand leasehold restrictions that apply to your block. If you need help navigating your lease and ensuring compliance, consult legal experts like Ringley Law. Their experience can help ensure your solar panel project is legally sound and financially viable. Would you consider solar panels for your block? Why not discuss the idea with your fellow residents and explore the possibilities?