Free Fit in Plain English

1 Introduction

Whilst it is great that your roof is suitable for a free PV system, we appreciate it can be a daunting task to read and understand the lease which confirms the underlying legal agreement.

For this reason, we have summarised, in plain English, the key points of the contract, and importantly, listed your responsibilities as the homeowner. Pro SolarPower Ltd has two Funding Partners. They both administer a large numbers of Free Fit solar PV investments in the residential sector on behalf of investment funds and trusts. They are experts in providing this service.

2 Grant

You, the homeowner, let the Funding Partner lease your roof for 25 years. During this time, the PV system is owned by the Funding Partner.

3 Termination

If the Funding Partner does not fulfil their obligations under the lease, then you, the homeowner, are able to break the lease. Similarly, the Funding Partner may also end the lease under certain circumstances such as if the property is abandoned by the homeowner.

4 Use

As the homeowner, you can use the electricity generated by the PV system, and you do not pay anything for this electricity. If you carry out building alterations close to the PV system, the Funding Partner would need to be informed so that they can check that this will not affect the PV system.

5 Rights (Funding Partner’s Rights)

As the Funding Partner is responsible for the maintenance of the PV system, they will occasionally need access to your house or roof to carry out any maintenance or indeed any other repairs that may be needed.

6 Reservations

If essential roof repairs are needed, the Funding Partner will temporarily remove the panels for which they require 28 days’ notice. As this does not fall under normal maintenance for the panels, there will be a charge for this to reflect expenses incurred. Note that in practice, we will only fit PV systems onto roofs that are in good condition and which are therefore unlikely to need major repair over the 25 year term.

7 Insurance

The system is insured by the Funding Partner so if it causes any damage to your property, it will be covered by us. As the homeowner you will have your own building insurance and your insurer(s) will need to be notified that there are panels on the roof, but that the Funding Partner are insuring them.

8 Building Regulations & Planning Permission

As long as your house is not a listed building or within a conservation area, then no planning permission is needed.

9 Costs & Outgoings

As the solar PV system is owned by the Funding Partner, they are responsible for all costs in relation to installing, maintaining and repairing the system. They will be responsible for any damage that the system might cause to your property. All the Feed in Tariffs are paid to Funding Partner as the owner of the system.

10 Repairs, Maintenance and Alterations

The Funding Partner will carry out all maintenance and repair work to professional standards. If for any reason they needed to change the location of the panels on the roof, then you need to allow them access to do so.

11 Assignment, Underletting & Charging

Throughout the lease period the system will be owned by the Funding Partner. Should the Funding Partner transfer ownership, you will be advised of the change and you will continue to enjoy the same benefits of free electricity and maintenance of the system as before. The obligations will not be changed.

12 End of Term

At the end of the Lease, ownership of the system transfers to the homeowner and you will continue to benefit from free electricity. After 25 years, solar PV panels are expected to perform to at least 80% of their original performance level. The Funding Partner’s obligations under the lease end at this point.

13 Landlord Covenants (Homeowner’s Responsibilities)

The system is not to be interfered with or tampered with by anyone except the Funding Partner or by someone appointed by the Funding Partner.

It is important that the panels are kept clear of shadows. So it is your responsibility to keep trees and vegetation trimmed to make sure that they do not cause extra shadowing on the system. In practical terms, whilst trees are usually the most likely cause of new shadows, it is likely that homeowners would keep these trimmed anyway to prevent the house itself losing natural light.

If you become aware of any damage to the PV system, you need to let the Funding Partner know so that we can arrange to fix it. This is to the benefit of both you and the Funding Partner as it keeps the generation of electricity to its maximum.

It is important that the Funding Partner has sufficient access to the system to be able to make any repairs and perform checks so that the system works to its maximum potential. Should reasonable access be denied, and this results in loss of revenue, we would have the right to claim compensation. In practice, it is in everyone’s interests for the system to work properly and, therefore, for access to be allowed when needed.

14 The Landlord and Tenant Act 1954

This lease is based upon The Landlord and Tenant Act 1954. It is in effect a business tenancy where you as the Landlord are giving the Funding Partner as the tenant the right to run a business on your roof. Normally under business tenancy law, the tenant has the right to remain and renew the lease should they wish to at the end of the term. For example, if the tenant were a shopkeeper, this gives the shopkeeper the security that a Landlord will not force them to leave the premises at the end of the lease. In the case of this lease, this right is specifically excluded to make sure for your sake that the lease finishes completely after 25 years, and the Funding Partner has no further right to remain. This explains the Important Notice form that we will ask you to sign.

15 Title matters

This is standard lease wording. But what it means is that the homeowner confirms that are no restrictions (through covenants or easements) that disallow the installation of panels on the roof. If you were paying for the panels yourself, the same conditions would apply. If there were any restrictions on your house, this would have been brought to your notice by your solicitor at the time of your house purchase.

16 Compensation on Vacating

After the lease has ended, the tenant (Funding Partner) cannot pursue you for any form of compensation. The lease will be registered with the Land Registry. When you move house, the lease and all its obligations remain with the house and the new owner will pick up the obligations as the new Landlord. The Lease has been approved by the Council of Mortgage Lenders, which means that any mortgage lender should be happy with the terms, and this should not prove an obstacle to selling your property. In fact, it should enhance the value of your house, if anything.